Snowflake shares surge 22% on strong AI momentum and revenue growth

Snowflake shares surged 22% in after-hours trading following fiscal second-quarter results that exceeded analyst expectations. The data analytics company reported a 35% year-over-year increase in revenue for the quarter ended July 31. While the company posted a net loss of $191.7 million, this was an improvement from the $297.9 million loss in the prior-year period.

Growth was bolstered by the company’s CoCo artificial intelligence coding agent, which expanded to 9,100 accounts during the quarter. Looking ahead, Snowflake raised its full-year product revenue forecast to $6.07 billion and upgraded its adjusted operating margin projection to 14.5%.

In separate market activity, the company announced a $3.5 billion private placement of senior convertible notes due in 2029 and 2031. PhilipCapital has initiated coverage of the stock with a ‘Buy’ rating and a price target of $423.