AI And Data Momentum: Key Takeaways From Snowflake’s Q2 Results

AI data cloud giant Snowflake maintained growth momentum in its recently concluded fiscal 2027 second quarter, the company said Wednesday as it reported financial results for the period. Here’s a look at some of the most salient points from the report.

Snowflake, the fast-growing AI data cloud company, reported strong financial results for its fiscal second quarter Wednesday with customers’ AI initiatives driving demand for the company’s platform and, especially, its CoCo and CoWork AI agents.

The numbers for the fiscal 2027 second quarter, ended July 31, included revenue of $1.55 billion, up 35 percent year over year, and product revenue of $1.49 billion, up 37 percent year over year.

The company also raised its guidance for the expected financial results for the rest of the fiscal year.

The price of Snowflake’s stock, which closed Wednesday at $305.84, surged in after-hours trading, increasing more than $70 a share or more than 23 percent to $376.60 as of 8:00 p.m. EDT.

The burgeoning demand for AI capabilities, not surprisingly, is the major demand driver for Snowflake’s services, Snowflake CEO Sridhar Ramaswamy, CFO Brian Robins and Products EVP Christian Kleinerman said during a Wednesday earnings call with industry analysts.

“We are in the midst of a once-in-a-lifetime technology shift, and Snowflake remains at the center of the enterprise AI revolution,” CEO Ramaswamy said on the call, noting that to remain competitive, every organization must become an agentic enterprise “and do it quickly, safely and cost-efficiently.”

The CEO said the Snowflake platform makes this possible by providing a governed data foundation, access to leading AI models, deep application workflows, and a unifying agentic control plane. “Put simply, the agentic enterprise runs on Snowflake,” he said.

“This marks our third straight quarter of acceleration,” CFO Robins said on the earnings call. “Q2 benefits from continued strength in our core data platform business and a meaningful step up in AI revenue. Our AI revenue reflects a broadening portfolio of AI capabilities.”

During the call, the executives put particular emphasis on the growing demand for the company’s Snowflake CoCo and Snowflake CoWork enterprise AI agent products.

AI Continues To Be A ‘Structural Multiplier’ For Growth

Snowflake said product revenue grew 37 percent year over year to $1.49 billion, including sales generated by the company’s core platform and individual products such as CoCo and CoWork.

Ramaswamy said growth was created by “three reinforcing dynamics” including customer AI initiatives generating new workloads for the Snowflake platform, sales of AI-specific products such as CoCo and CoWork, and AI activation that “continues to lift overall platform consumption.”

“Customers using AI on Snowflake consume more across the data platform, creating a structural multiplier for our business,” the CEO said. “As AI strengthens demand for our core platform, it is also expanding Snowflake’s opportunity to deliver a new generation of AI-powered products and experiences,” Ramaswamy said.

(Snowflake CoCo, previously Snowflake Cortex Code, is Snowflake’s AI-powered coding and data agent while CoWork, previously Snowflake Intelligence, is the company’s personal AI work agent.)

The evolution of Snowflake CoCo is the biggest development in the Snowflake ecosystem this year, Jim Martindale, CEO of Snowflake partner BlueCloud, said in a recent interview with CRN.

“We’re a serious adopter of it. We use it in all of our projects and programs,” he said. (BlueCloud was a 2026 CoCo Catalyst Snowflake Partner of the Year award winner earlier this year.) “It gets our clients’ data into a Snowflake architecture so we can begin to use AI as quickly as humanly possible,” he said.

And Snowflake is making extensive use of its own technology. Kleinerman, Snowflake’s executive vice president of products, said that Snowflake is “leveraging CoCo and CoWork throughout pretty much every function and every business process in Snowflake. And we’re leveraging them not only to inform the quality and completeness of our products, but also to go and engage with the customer and tell them: ‘This is how you become AI-native.’”

Customer Momentum

Snowflake now has 14,554 customers (as of July 31), a year-over-year gain of 32 percent. The company added 692 new customers during the second quarter, including 14 from the Global 2000.

Among its customers, 828 have trailing 12-month product revenue greater than $1 million, according to the company, and 65 have trailing 12-month product revenue greater than $10 million. Ramaswamy said those numbers demonstrate how the company’s largest customers “continue to go all-in on Snowflake.”

The CEO highlighted Sayari, a leading risk intelligence service provider, as emblematic of a rising Snowflake customer. Sayari recently announced a plan to migrate and rebuild its commercial world model on the Snowflake Data Cloud, consolidating 12 billion primary-source records from 715 sources, and utilize Snowflake CoCo to accelerate data migration.

Robins said CoCo “delivered another standout quarter” and now has more than 9,100 customers – with more than 2,000 of those added as net-new accounts during Q2 – while CoWork is now used in 5,8000 customer accounts.

Ramaswamy said companies such as BlackRock, 1Password, Indeed and what he described as “one of the largest Australian banks” are now “running more of their mission-critical work on Snowflake” and leveraging the companies growing product portfolio.

The CEO also said that the number of use cases – individual customer projects deployed on Snowflake – increased 89 percent year over year during the quarter.

Looking Ahead

For the fiscal 2027 third quarter (the current quarter) Snowflake expects product revenue of $1,588 million to $1,593 million, representing 37 percent to 38 percent year-over-year growth.

For all of fiscal 2027 (ending Jan. 31, 2027) the company expects product revenue of $6,070 million representing 36 percent year-over-year growth. That is up from earlier guidance of $5,840 million or 30 percent year-over-year growth.

Snowflake expects its total addressable market to more than double from $225 billion in fiscal 2026 to $460 billion in fiscal 2031, with AI the major driver of that growth.

Snowflake, however, has yet to turn the corner to profitability: For the just completed quarter, the company reported a net loss of $191.7 million, down from the $297.9 million loss the company reported one year earlier.

During the Wednesday earnings call CEO Ramaswamy said Snowflake is “on track for GAAP profitability” in the fourth quarter of fiscal 2028.