Snowflake Q2 Product Revenue Jumps 37% as Growth Accelerates

EarningsAnalyst Impact 4
โดย Insider Monkey·US·Read original
Summary · why it matters

Snowflake reported second-quarter fiscal 2027 results on September 2 showing product revenue of $1.49 billion, up 37% year over year, the third straight quarter its growth rate climbed rather than faded, while total revenue reached $1.55 billion, a 35% increase from the same period last year. Net revenue retention came in at 126%, the company added 692 net new customers, a 32% jump in the pace of additions, and customers spending more than $1 million annually grew 27% to 828. Its CoCo AI product is now used by more than 9,100 accounts after adding over 2,000 net new accounts in the quarter, and CoWork has reached 5,800 accounts. Management raised full-year product revenue guidance to $6.07 billion from a prior estimate of $5.84 billion and lifted its non-GAAP operating margin guidance to 14.5% from 13.5%, with margin already expanding to 15.3% in the quarter from 11% a year earlier. CFO Brian Robins said the revised outlook includes a higher revenue mix from fast-growing AI workloads that carry a lower contribution margin today, and flagged that bookings are expected to be increasingly weighted toward the fourth quarter, with remaining performance obligations at $9 billion, up 30% year over year, of which roughly 54% is expected to convert to revenue over the next 12 months.

Impact on stocks 1

Cloud & Digital Infrastructure▲ · 1 stocks
Snowflake Inc.
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Snowflake beat on Q2 product revenue (+37%) and raised full-year product revenue and operating margin guidance.

Theme Impact 2

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Snowflake Raises Fiscal 2027 Product Revenue Guidance to $6.07 Billion

Snowflake raised its fiscal 2027 product revenue guidance to $6.07 billion, implying 36% year-over-year growth, up from its previous outlook of $5.84 billion and 31% growth. In the fiscal second quarter 2026, product revenues rose 37% to $1.49 billion and accounted for 96% of total revenues. Management said AI products contributed roughly half of the recent acceleration, with CoCo surpassing 9,100 accounts after adding more than 2,000 in the quarter and CoWork expanding to 5,800 accounts, up nearly 11% sequentially. The company ended the second quarter of fiscal 2027 with 14,554 total customers, up 32% year over year, including 828 customers generating more than $1 million in trailing 12-month product revenues, up 27%, and 65 customers above $10 million. Fiscal third-quarter product revenues are expected between $1.588 billion and $1.593 billion, indicating 37-38% growth, while the Zacks Consensus Estimate for fiscal 2027 earnings stands at $2.19 per share, up 11.16% over the past 30 days.
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Snowflake Earns Zacks Rank #2 as Earnings Estimates Climb

Snowflake Inc. is drawing heightened investor attention after Zacks Investment Research highlighted sharply rising earnings estimates for the data-warehousing company. For the current quarter, Snowflake is expected to post earnings of $0.60 per share, a change of +71.4% from the year-ago quarter, while the Zacks Consensus Estimate has moved +17.5% over the last 30 days. For the current fiscal year, the consensus earnings estimate of $2.19 points to a change of +75.2% from the prior year, and for the next fiscal year the consensus estimate of $2.84 indicates a change of +29.6%. On revenue, the consensus sales estimate for the current quarter of $1.64 billion indicates a year-over-year change of +35.5%, with current and next fiscal year estimates of $6.29 billion and $8 billion pointing to changes of +34.2% and +27.3%, respectively. In its last reported quarter, Snowflake posted revenues of $1.55 billion, a year-over-year change of +35.1%, and EPS of $0.62 versus $0.35 a year ago, beating the Zacks Consensus revenue estimate of $1.47 billion by +4.91% and the EPS estimate by +37.78%. Citing the size of the recent change in the consensus estimate along with three other earnings-related factors, Zacks rates Snowflake Zacks Rank #2 (Buy), though the stock carries a Zacks Value Style Score of F, indicating it trades at a premium to its peers.
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