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Snowflake enterprise AI revenue growth

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2026-09-04 00:28 UTC → 2026-09-07 10:12 UTC · added ~~removed~~

Snowflake Inc. has demonstrated accelerating revenue growth driven by enterprise demand for artificial intelligence tools. In the first quarter of fiscal year 2027, the company reported revenue of $1.391 billion, a 33% year-over-year increase, noting that over 13,600 accounts were utilizing AI capabilities such as Snowflake CoWork and Snowflake CoCo. By the second fiscal quarter of 2027, growth momentum continued as revenue reached $1.55 billion, representing a 35% year-over-year increase. Product revenue specifically grew 37% to $1.49 billion, marking the third consecutive quarter of accelerating growth. The company reported a non-GAAP earnings per share of $0.62, which surpassed the consensus estimate of $0.45, though it recorded a net loss of $191.7 million—an improvement from the $298 million loss in the same quarter the previous year. CEO Sridhar Ramaswamy attributed the performance to a ‘flywheel effect’ from AI tools, noting that the CoCo AI programming assistant expanded to over 9,100 accounts. Following these results, Snowflake raised its full-year FY27 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 from 13.5% to 14.5%. In response to the report, Snowflake shares saw significant gains, rising between 21% and 24% in after-hours and pre-market trading. Following the quarterly report, analyst sentiment remained positive. Cantor Fitzgerald analyst Thomas Blakey raised the price target for Snowflake from 405 USD to 430 USD while maintaining an ‘overweight’ rating. This adjustment follows the observation that product revenue exceeded internal forecasts by 5%, positioning the company to benefit from the long-term artificial intelligence boom through increased usage of its AI agents.

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