Snowflake Reports Strong Q2 Growth Driven by AI Adoption
Snowflake Inc. (NYSE:SNOW) reported strong fiscal second-quarter results, with product revenue rising 37% year-over-year to $1.49 billion, driven largely by increased demand for its data platform and AI offerings. The company raised its full-year product revenue guidance to $6.07 billion, reflecting a projected growth rate of 36%. CEO Sridhar Ramaswamy highlighted that AI workloads contributed significantly to the acceleration in growth and are driving broader adoption across Snowflake's core services. Snowflake also improved profitability metrics, with non-GAAP operating margin expanding to 15% for Q2. The company raised its full-year margin forecast from 13.5% to 14.5%, while maintaining an adjusted free-cash-flow margin target of 23%. Snowflake aims to achieve GAAP profitability by fiscal Q4 2028. Net revenue retention remained strong at 126%, and remaining performance obligations increased 30% year-over-year to $9 billion, with about half expected to be recognized as revenue in the next 12 months. Customer growth was also notable, with Snowflake adding 692 net new customers for a total of 14,554 globally. The company now serves over 800 Forbes Global 2000 companies and has seen significant adoption of its AI Data Cloud across enterprise clients.
Tickers: $SNOW
Topics: ai_products data_platform profitability revenue_growth