Snowflake shares were up close to 40% for the year through Wednesday’s close
Credit: INA FASSBENDER / AFP / Getty Images Key Takeaways
Snowflake shares jumped after the company reported better-than-expected earnings on strong AI demand.
The AI data cloud company also raised its full-year outlook.
Snowflake stock is surging on signs that enterprise AI demand is driving big gains for its business.
Shares of Snowflake (SNOW) were up more than 20% in extended trading Wednesday after the AI data cloud company posted quarterly results that topped analysts’ estimates and raised its outlook.
The company reported adjusted earnings per share of $0.62 for its fiscal 2027 second quarter, on a 35% year-over-year rise in revenue to $1.55 billion. Those numbers were well above the adjusted EPS of $0.45 on revenue of $1.48 billion that analysts surveyed by Visible Alpha expected.
CFO Brian Robins said in a release that Snowflake saw a “meaningful step-up in AI revenue.” The company said it netted 692 new clients in the quarter, including 14 Forbes Global 2000 businesses.
“AI continues to compound our advantages, creating a flywheel effect across the business,” CEO Sridhar Ramaswamy said.
Snowflake projected current-quarter product revenue of between $1.588 billion and $1.593 billion, which would represent up to 38% growth. It lifted its full-year product revenue forecast to $6.07 billion from $5.84 billion previously.
Snowflake shares were up nearly 40% for the year through Wednesday’s close.
CORRECTION: An earlier version of this article incorrectly stated that the big gains in after-hours trading put Snowflake stock on track to hit a record high.
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