Snowflake stock jumped more than 23% in premarket trading Thursday after the company reported fiscal second-quarter results that beat expectations and lifted its full-year guidance. The gain, if it holds, would rank as the fourth largest single-day jump since Snowflake went public in 2020. Before the report, SNOW had closed Wednesday up 39% year to date, outpacing the S&P 500’s roughly 12% gain, but technical signals had turned cautious: shares traded around $319.80 on September 2, below last month’s high of $341, and momentum indicators such as the Percentage Price Oscillator and Relative Strength Index suggested a potential pullback toward $300.
Those concerns were swept aside as adjusted EPS came in at $0.62, well ahead of the $0.45 analyst consensus, while total revenue rose 35% year over year to $1.55 billion, topping the $1.48 billion estimate. Product revenue reached $1.49 billion, up 37% from a year earlier, marking three straight quarters of accelerating product revenue growth. Snowflake added 692 net new customers, up 32% year over year, and now counts 829 Forbes Global 2000 companies as customers. CEO Sridhar Ramaswamy said Snowflake is “powering the enterprise AI revolution” and pointed to a “flywheel effect” building across the business.
AI adoption was a bright spot: CoCo, Snowflake’s AI coding agent, crossed 9,100 accounts after adding more than 2,000 during the quarter, while CoWork expanded to 5,800 accounts. For the third quarter, Snowflake guided for product revenue of $1.588 billion to $1.593 billion, implying 37% to 38% growth and above the $1.57 billion consensus. Full-year product revenue guidance was raised to $6.07 billion from $5.84 billion, while adjusted operating margin guidance moved to 14.5% from 13.5%. BTIG analyst Gray Powell called the report a “strong beat and raise” and said growth is becoming broad-based. The company’s net loss narrowed to $191.7 million, or $0.55 per share, from $297.9 million, or $0.89 per share, a year earlier.
