Snowflake shares surged 22 percent in after-hours trading on Wednesday after the cloud data giant posted second-quarter results that comfortably exceeded Wall Street expectations. The company reported quarterly revenue of 1.55 billion dollars, topping analysts’ estimates of 1.48 billion dollars. Even more impressive was the performance of its core product revenue, which hit 1.49 billion dollars and represented a 37 percent increase year over year, marking three straight quarters of accelerating growth for the firm’s primary business engine.
Buoyed by these strong numbers, Snowflake significantly hiked its financial targets for the remainder of the year. The company raised its full-year product revenue guidance to 6.07 billion dollars from a previous estimate of 5.84 billion dollars, reflecting an expected annual growth rate of 36 percent. Management also nudged upward its adjusted operating margin outlook to 14.5 percent, signaling confidence in both top-line expansion and operational efficiency despite recording a GAAP net loss of roughly 192 million dollars for the quarter.
Chief Executive Officer Sridhar Ramaswamy credited much of this momentum to the broader corporate shift toward artificial intelligence. He noted that businesses are increasingly migrating their workloads to Snowflake to build an AI ready data foundation, effectively turning the industry wide tech transformation into a competitive advantage for the company. This trend is reflected in the rapid adoption of specialized tools like the CoCo AI coding agent and CoWork product, which together saw thousands of new account additions recently.
The company continues to expand its global footprint, adding nearly 700 net new customers during the quarter to bring its total client base to over 14,500 organizations worldwide. With remaining performance obligations climbing to 9 billion dollars, a critical indicator of guaranteed future income, Snowflake appears well positioned for continued scale. Looking ahead to the third quarter, the company anticipates further gains with product revenue projections far exceeding current analyst forecasts.