Snowflake announced financial results for its second quarter of fiscal 2027, ended July 31, 2026.
"Snowflake delivered another strong quarter, with product revenue of $1.49 billion, up 37% year-over-year, as Snowflake continues to power the enterprise AI revolution,” said Sridhar Ramaswamy, CEO of Snowflake. “AI continues to compound our advantages, creating a flywheel effect across the business. CoWork and CoCo are driving transformational outcomes for our customers, while fueling rapid adoption, user growth, new workloads, and overall platform consumption. Our rapid pace of innovation, tight go-to-market execution, and operational discipline position us well to capture the opportunity ahead. The Agentic Enterprise runs on Snowflake, and we're just getting started."
“Q2 marks our third consecutive quarter of product revenue growth acceleration, driven by strength in both our core data platform and a meaningful step-up in AI revenue,” said Brian Robins, CFO of Snowflake. “Importantly, we delivered this accelerating growth while expanding operating margin. Balancing growth with discipline remains a top priority, and we are raising our full-year product revenue growth guidance to 36% year-over-year.”
Snowflake Business Highlights:
AI Momentum: CoCo surpassed 9,100 accounts 1, adding more than 2,000 accounts in the quarter alone, while CoWork expanded to 5,800 accounts 1.
Accelerated Product Velocity: Launched over 330 product capabilities to general availability in the first half of fiscal 2027, up 35% year-over-year, and recently introduced Cortex Sense for business context and Cortex AI Gateway, which extends AI from insight to action through its integration of Natoma.
AI Customer Wins: Customers like 1Password and Indeed chose Snowflake as the foundation for their data and AI transformation. Sayari cut costs by more than half and is using CoCo to accelerate the migration of 12 billion records.
Customer Growth: Added 692 net new customers in the quarter, up 32% year-over-year, including 14 net new Forbes Global 2000 customers.
Financial Outlook:
Our guidance includes GAAP and non-GAAP financial measures.
For the third quarter of fiscal 2027, the company expects:
Product revenue of $1,588 million to $1,593 million, representing 37% to 38% year-over-year growth
Non-GAAP operating margin 2 of 15.5%
Non-GAAP weighted-average shares used in computing net income per share attributable to common stockholders—diluted 2,3 of 382 million
For the full-year of fiscal 2027, the company expects:
Product revenue of $6,070 million, representing 36% year-over-year growth, up from previous guidance of $5,840 million, or 31% year-over-year growth
Non-GAAP product gross margin 2 of 74.0%
Non-GAAP operating margin 2 of 14.5%, up from previous guidance of 13.5%
Non-GAAP adjusted free cash flow margin 2 of 23.0%
Non-GAAP weighted-average shares used in computing net income per share attributable to common stockholders—diluted 2,3 of 380 million
A reconciliation of GAAP guidance measures to corresponding non-GAAP guidance measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, expenses that may be incurred in the future.
Stock-based compensation-related charges, including employer payroll tax-related items on employee stock transactions, are impacted by the timing of employee stock transactions, the future fair market value of our common stock, and our future hiring and retention needs, all of which are difficult to predict and subject to constant change. These factors could be material to our results computed in accordance with GAAP. Our fiscal year ends January 31, and numbers are rounded for presentation purposes.
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