Snowflake Inc.Strong earnings beat and raised guidance drive shares up 17%.

Snowflake Inc. reported fiscal second-quarter product revenue of $1.49 billion, up 37% year over year, and total revenue of $1.55 billion, up 35%, sending shares up 17%. Adjusted earnings of $0.62 per share beat the $0.45 consensus estimate, marking the third consecutive quarter of accelerating product-revenue growth. CEO Sridhar Ramaswamy attributed about half of the acceleration to AI, with the CoCo coding assistant now used by over 9,100 accounts. Net revenue retention stood at 126%, and remaining performance obligations reached $9 billion, while the number of clients spending over $1 million annually rose to 828. Management raised full-year product revenue guidance to $6.07 billion from $5.84 billion, implying about 36% growth. However, the stock trades at roughly 152 times consensus fiscal 2027 adjusted earnings, and even based on fiscal 2030 estimates of $5.86 per share, it is about 58 times earnings nearly four years out, leaving little room for disappointment.
Snowflake Inc.Strong earnings beat and raised guidance drive shares up 17%.