Mirror Review
September 3, 2026
Snowflake Q2 earnings 2026 exceeded analyst expectations as the company reported $1.55 billion in quarterly revenue, up 35% year over year. Snowflake product revenue reached $1.49 billion, increasing 37%, while non-GAAP diluted earnings per share came in at $0.62, above the $0.45 analyst estimate. The results cover the second quarter of fiscal 2027, ended July 31, 2026.
The Snowflake earnings results also showed continued expansion across its customer base. Snowflake reported a 126% net revenue retention rate and 828 customers generating more than $1 million in trailing-12-month product revenue. Remaining performance obligations reached $9 billion, while the company counted 829 Forbes Global 2000 customers.
Snowflake Raises FY2027 Guidance
Snowflake raised its FY2027 product revenue guidance to $6.07 billion from $5.84 billion. The updated Snowflake FY2027 guidance represents 36% year-over-year growth and gives investors a higher product revenue forecast for the full fiscal year.
For the third quarter, Snowflake expects product revenue between $1.588 billion and $1.593 billion. The company also expects a non-GAAP operating margin of 15.5% for the quarter. For the full year, it projects a 14.5% non-GAAP operating margin and a 23% adjusted free cash flow margin.
The higher guidance comes as Snowflake continues to expand its cloud data platform while adding more AI capabilities to its products.
Snowflake AI Adoption Expands
AI demand has become a larger part of Snowflake’s growth story, with customers increasingly using its platform for AI workloads. CEO Sridhar Ramaswamy said AI products accounted for about half of the company’s recent growth acceleration.
Snowflake has expanded its AI Data Cloud with products designed for enterprise AI use cases, including AI coding and AI agents. The company also introduced more than 330 product capabilities to general availability during the first half of fiscal 2027, as it works to bring artificial intelligence deeper into its data platform.
This expansion positions Snowflake around a broader shift from traditional data warehousing toward AI data infrastructure, where enterprises can use governed business data to support analytics and AI applications.
CoCo and CoWork Gain Customers
Snowflake’s AI coding tool CoCo surpassed 9,100 customer accounts, while Snowflake CoWork reached 5,800 accounts. CoCo added more than 2,000 accounts during the quarter, showing continued adoption of Snowflake’s AI coding capabilities.
CoWork focuses on enterprise AI workflows, giving customers another way to interact with data and automate tasks. Together, the products highlight Snowflake’s push into AI coding, AI agents, and other enterprise AI applications.
Snowflake also continues to develop Snowflake Intelligence and other AI capabilities as part of its broader AI strategy.
Snowflake Stock Jumps After Earnings
Snowflake stock jumped more than 20% in extended trading after Snowflake released its Q2 results and raised its full-year guidance. The initial market reaction followed the revenue and EPS beat as well as the higher FY2027 product revenue forecast.
The stock move came after Snowflake reported its third consecutive quarter of accelerating product revenue growth, according to the company’s earnings commentary. The combination of stronger quarterly earnings, rising AI adoption, and higher guidance became the key focus of the Snowflake earnings reaction.
What Snowflake Q3 Guidance Signals
Snowflake’s next test will be whether it can maintain its product revenue growth while expanding AI adoption and margins. The company’s Q3 product revenue guidance of $1.588 billion to $1.593 billion points to continued year-over-year growth, while the full-year forecast now calls for $6.07 billion in product revenue.
The latest Snowflake Q2 earnings therefore give investors three clear figures to watch going forward: accelerating product revenue, growing AI adoption and the company’s ability to deliver against its higher FY2027 guidance.
For now, Snowflake enters the second half of fiscal 2027 with stronger revenue growth, expanded enterprise AI adoption and a higher product revenue outlook.
Gurushanth S Jatti
