Enterprise technology earnings dominated Thursday’s session, with Snowflake emerging as the standout after crushing fiscal second-quarter targets and issuing guidance well above Wall Street expectations. The data warehousing company reported product revenue of $1.49 billion, up 37% year over year, while total revenue reached $1.55 billion, up 35% year over year and above the $1.48 billion consensus. Adjusted earnings per share came in at $0.62, far ahead of the $0.45 analysts expected. Remaining performance obligations rose 30% to $9 billion, a signal of future revenue strength.
Snowflake also lifted its outlook. For the third quarter, it expects product revenue between $1.588 billion and $1.593 billion, compared with a $1.51 billion consensus. For fiscal 2027, the company projects product revenue of $6.07 billion, up 31% year over year. CEO Sridhar Ramaswamy said the company remains on track to break even next year and highlighted accelerating AI adoption as a driver of new workloads and higher platform usage. The stock jumped about 22% to 24% in response.
Datadog rose in sympathy, gaining roughly 5% to near $220, as Snowflake’s results fueled a broader rally in AI and cloud infrastructure names. Datadog and Snowflake overlap in enterprise AI infrastructure, and investors often trade them together. Datadog had dropped about 22% over the prior month after a major AI customer signaled lower platform usage, so Thursday’s move recovered only a portion of those losses.
Other enterprise names moved lower despite solid results. NetApp fell 9% even after record first-quarter revenue of $2.03 billion, up 30% year over year and above the $1.84 billion consensus, as free cash flow dropped 35% year over year to $401 million. Hewlett Packard Enterprise beat second-quarter expectations with revenue up 34% year over year to $12.21 billion and raised its full-year adjusted earnings outlook, but the stock slid 5% after a 116% year-to-date gain created a high bar. Broadcom declined 3.6% premarket as investors weighed data center financing concerns and a report that Google struck a chip design deal with Marvell.
ChargePoint was another bright spot, rising 18% after revenue climbed 17.8% year over year, gross margin improved, and its adjusted EBITDA loss narrowed sharply. Broader stock futures were mixed as investors balanced U.S.-Iran geopolitical tensions against ongoing interest rate concerns, with easing bond yields providing some support. The developments carried no direct catalyst for cryptocurrency markets.
