Snowflake Q2 growth surges on AI and data demand

Snowflake's revenue growth accelerated to 37% in the second quarter as the company continues to see strong demand for its data platform due to AI.

The company reported a second quarter net loss of $191.7 million, or 55 cents a share, on revenue of $1.546 billion. Non-GAAP earnings were 62 cents a share.

Wall Street was looking for non-GAAP earnings of 45 cents a share on revenue of $1.48 billion.

CEO Sridhar Ramaswamy said "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."

• Snowflake to add dynamic model routing to Cortex AI Gateway
• Constellation ShortList™ Customer Data Platform (CDP)
• Constellation ShortList™ Metadata Management & Data Governance
• Constellation ShortList™ Semantic & Context Management for Analytics and AI
• Snowflake Summit 2026: Redrawing the Boundary Between Data, Context, and Action
• Snowflake Summit 2026: Context, custom model training, Iceberg V3

By the numbers:

• Snowflake CoCo topped 9,100 accounts in the second quarter and Snowflake CoWork had 5,800 accounts.
• The company added 692 net new customers in the quarter.
• Snowflake reported 828 customers with trailing 12-month product revenue topping $1 million, up 27% from a year ago.
• Remaining performance obligations were $9 billion, up 30% from a year ago.

As for the outlook, Snowflake projected third quarter product revenue of $1.588 billion to $1.593 billion, up 37% to 38%. Non-GAAP operating margins will be 15.5%.

For fiscal 2027, Snowflake projected product revenue of $6.07 billion, up 36% from a year ago. Operating margins will be 14.5%. Both targets were higher than previous guidance.