Snowflake Surges Over 23% After Strong Q2 Results and Raised Guidance
Snowflake (NYSE:SNOW) surged over 23% in Thursday trading after reporting better-than-expected second-quarter revenue of $1.55 billion, a year-over-year increase of 35%. The company also raised its fiscal 2027 product-revenue forecast to $6.07 billion from $5.84 billion, reflecting strong growth driven by AI-related products and services. Oracle (NYSE:ORCL) rose 3%, while Cloudflare (NYSE:NET) gained about 2%. The broader cloud infrastructure sector benefited as investors reacted positively to Snowflake's performance and its implications for the growing demand in data platforms supporting artificial intelligence. Despite a GAAP net loss of $192 million, Snowflake’s strong revenue growth and expanding customer base signaled continued momentum. Snowflake reported adjusted earnings per share (EPS) of 62 cents versus an expected 45 cents. Its product revenue grew by 37% to $1.49 billion in Q2, with remaining performance obligations reaching $9 billion—up 30% year over year.
Topics: AI infrastructure cloud stock rally