Snowflake shares jumped 22% in extended trading after the data analytics company beat Wall Street's earnings and revenue targets for its fiscal second quarter. The company also raised its guidance for the rest of fiscal 2027.
Snowflake shares jumped 22% in extended trading on Wednesday after the company beat Wall Street's earnings and revenue targets and raised its outlook for the rest of the fiscal year.
Earnings beat estimates across the board
The company reported adjusted earnings of 62 cents per share, above the 45 cents analysts had expected, on revenue of $1.55 billion versus a $1.48 billion consensus. Revenue for the fiscal second quarter, which ended July 31, climbed 35% year over year. The company also narrowed its bottom line, posting a net loss of $191.7 million, or 55 cents a share, down from a $297.9 million loss a year earlier.
AI coding agent drives adoption
Ramaswamy attributed the strong quarter to enterprises building AI tools on their data, pointing to more customers migrating their data and workloads onto Snowflake for an AI-ready foundation. Alongside that, the company's CoCo AI coding agent reached 9,100 accounts, an increase of more than 2,000 during the quarter.
Guidance raised for fiscal 2027
Snowflake now expects $1.59 billion in product revenue for the fiscal third quarter, above the $1.50 billion consensus among analysts polled by StreetAccount. Management also raised its full-year product revenue forecast to $6.07 billion, up from $5.84 billion in May, and lifted its adjusted operating margin outlook to 14.5% from 13.5%.
As of Wednesday's close, shares were up 39%, compared with a gain of about 12% for the S&P 500 over the same period. If the stock rises as much on Thursday as it did after hours, it would mark the fourth-highest jump since Snowflake went public in 2020.
Sources: CNBC, MarketWatch (snippet-based)
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