AI-cloud firm Snowflake Inc (NYSE: SNOW) (FRA: 5Q5) just posted results that beat forecasts by a clear margin and prompted the firm to lift its outlook for the full year.
Shares jumped roughly 22 per cent in after-hours trading on Wednesday after figures for the fiscal second quarter ended Jul. 31 appeared. That rise ranked among the biggest single-day moves the stock has seen since it went public.
The jump followed a solid earnings beat, growth in CoCo, and raised guidance. Adjusted earnings came in at 62 cents a share against the 45 cents expected. Revenue reached US$1.55 billion, ahead of the US$1.48 billion forecast and up 35 per cent from a year earlier. Product sales rose 37 per cent to US$1.49 billion.
CoCo, a tool that helps developers write and manage computer code more quickly, added more than 2,000 accounts in the quarter and now serves 9,100. Management lifted its full-year product revenue target to US$6.07 billion from US$5.84 billion and raised its adjusted operating margin forecast to 14.5 per cent from 13.5 per cent.
These gains came from greater use of the platform by existing customers and a rise in new ones. More firms moved their data work onto the service and began using the new tools, which increased overall spending. The company also signed up hundreds of new clients and kept a high rate of repeat business.
“There’s a lot of sizzle around AI, but not nearly enough steak,” said Enterprise Account Executive at Snowflake, Andrew Hamburger. “Snowflake’s Q2 earnings put Wagyu on the menu.”
Investment research firm Morningstar raised its fair value estimate for the shares to US$284 from US$255 after the results. At the same time it flagged key concerns. The firm notes that Snowflake still lacks lasting competitive advantages to keep rivals at bay. It also points to the stock’s high price after the sharp rise and the chance that growth could slow once the current strong demand for data and related tools eases. Morningstar rates the uncertainty around the shares as very high and still sees them as overvalued at their current price of US$305.84.
Snowflake is a company that helps businesses store large amounts of information in the cloud and then look at that information quickly to make better decisions. It essentially provides a secure digital warehouse where firms keep their records and run simple checks or reports whenever they need them. It serves thousands of organisations, including many of the world’s biggest companies.
Congratulations to team @Snowflake on a great quarter! Stock is up 23% after-hours.
Earnings highlights:
Revenue: Reached $1.55 billion, up 35% year-over-year and beating the $1.48 billion consensus estimate.
Product Revenue: Hit $1.49 billion, representing a 37% increase… pic.twitter.com/156lL3Qman
— Sarbjeet Johal (@sarbjeetjohal) September 3, 2026
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