SNOW Stock Rallies 23% After-Hours As AI Coding Tool Fuels Revenue Growth, Aids Raised Outlook

Snowflake Inc. surpassed Wall Street expectations for the second quarter and increased its full-year sales outlook.

• Snowflake raised its annual product revenue projection to about $6.07 billion, outperforming analyst consensus. 
• Product revenue reached $1.49 billion for the fiscal second quarter, marking a 37% year-over-year increase. 
• More than 2,000 additional customer accounts adopted the company’s AI coding assistant, CoCo, bringing total usage to 9,100 accounts. 

Snowflake Inc. (SNOW) delivered strong fiscal second-quarter financial results on Wednesday, lifting its full-year sales guidance above Wall Street expectations.

The cloud data platform benefited heavily from accelerating demand for its artificial intelligence tools, which continue to drive enterprise software consumption. Shares surged more than 20% in extended trading after the release. Prior to the report, SNOW stock had gained 39% year-to-date.

For the second quarter ending in July, product revenue, which represents around 95% of Snowflake's total revenues, rose 37% year-over-year to $1.49 billion. That surpassed the average analyst estimate of $1.48 billion, according to data from Fiscal.ai. Remaining performance obligations, a key indicator of future contracted revenue, reached $9 billion.

AI Assistant ‘CoCo’ Sees Rapid Enterprise Adoption

A key catalyst behind Snowflake's performance has been the integration of artificial intelligence capabilities across its cloud ecosystem. Investors have closely tracked the company's ability to monetize new AI offerings, including its dedicated coding assistant, CoCo.

During the second quarter, more than 2,000 new client accounts adopted CoCo, bringing the total number of enterprise accounts using the tool to 9,100. The growing reliance on AI-driven data tools underscores steady consumption trends among corporate clients seeking to streamline data analysis and application development.

“AI continues to compound our advantages, creating a flywheel effect across the business,” said Sridhar Ramaswamy, CEO of Snowflake. CoWork and CoCo are driving transformational outcomes for our customers, while fueling rapid adoption, user growth, new workloads, and overall platform consumption. 

SNOW Beats Q3 And Full-Year Fiscal 2027 Outlook

Building on its second-quarter momentum, Snowflake raised its full-year performance outlook. Snowflake now projects full-year product revenue for the fiscal year ending January 2027 to reach around $6.07 billion. This updated forecast is higher than its prior May guidance and exceeds Wall Street’s average estimate of $6.01 billion, according to Fiscal.ai.

The company also beat Q3 analyst expectations. It forecast Q3 revenue at $1.59 billion, higher than $1.57 billion that analysts polled by Fiscal.ai anticipated. 

SNOW Stock: Retail View 

Retail sentiment on Stocktwits was ‘extremely bullish’ with ‘high’ message volumes. Retail chatter on the stock was up over 2,500% compared to the previous session following the blowout earnings print. 

SNOW stock has gained 37% year-to-date.

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