Snowflake reports Q2 FY27 revenue growth of 35% on AI demand

Snowflake reported strong financial results for its second fiscal quarter of 2027, driven significantly by demand for artificial intelligence solutions. The company reported total revenue of $1.55 billion, a 35% increase year-over-year, surpassing analyst expectations. Product revenue grew 37% to $1.49 billion, marking the third consecutive quarter of accelerating growth.

Following the report, Snowflake raised its full-year product revenue guidance to approximately $6.07 billion, up from the previous estimate of $5.84 billion. The company also increased its full-year non-GAAP operating margin target to 14.5% from 13.5%. CEO Sridhar Ramaswamy noted that AI is creating a “flywheel effect” across the business, specifically highlighting the adoption of AI-driven tools like CoWork and CoCo.

In after-hours and pre-market trading, Snowflake shares saw significant gains, rising between 21% and 24%. The company reported a net loss of $191.7 million, which was an improvement from the $298 million loss recorded in the same quarter the previous year. Non-GAAP earnings per share reached $0.62, exceeding the consensus estimate of $0.45.