Snowflake Reports Strong Earnings Amid Rising AI Demand, Shares Surge
Snowflake (SNOW) reported better-than-expected earnings driven by surging demand for its AI-related services. The company's adjusted EPS reached $0.62 in Q2 FY27 on a year-over-year revenue increase of 35% to $1.55 billion, surpassing analyst expectations. Snowflake also raised its full-year product revenue forecast from $5.84 billion to $6.07 billion and projected current-quarter product revenue between $1.588 billion and $1.593 billion. The company added 692 new clients in the quarter, including 14 Forbes Global 2000 businesses, with CFO Brian Robins noting a 'meaningful step-up' in AI-related revenue. CEO Sridhar Ramaswamy highlighted that AI is creating a flywheel effect across Snowflake's business. Snowflake shares rose over 20% premarket and were up nearly 40% for the year through Wednesday’s close, reflecting strong investor confidence.
Tickers: $SNOW