Snowflake posts 37% product revenue growth, raises FY27 guidance for 2027

Snowflake (NYSE: SNOW ) released second-quarter financial results and hosted an earnings call on Wednesday.

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View the webcast at Watch the full earnings call below: Summary Snowflake Inc reported a 37% year-over-year growth in product revenue, reaching $1.49 billion, with a notable acceleration in growth over the past two quarters.

The company's non-GAAP operating margin expanded by over 400 basis points year-over-year to 15%, reflecting strong financial performance and operational discipline.

Snowflake is leveraging AI to drive new workloads onto its platform, with products like Coco and Cowork seeing rapid adoption and contributing significantly to revenue growth.

The company added 692 net new customers, including 14 from the Global 2000, and now supports 14,554 customers worldwide.

Snowflake has raised its FY27 product revenue guidance to $6.07 billion, representing 36% year-over-year growth, and expects continued margin expansion.

AI is driving increased platform consumption, with a structural multiplier effect seen as customers integrate AI into their operations.

Cortex AI Gateway and other AI innovations are enhancing Snowflake's capability to provide cost-effective, scalable AI solutions to its customers.

Management emphasized the importance of model neutrality and flexibility in AI offerings, noting benefits in cost optimization and competitive advantage.

The company is focused on innovation, launching over 330 product capabilities in the first half of the year, demonstrating a commitment to platform expansion.

Snowflake aims to achieve GAAP profitability by Q4 fiscal 28, with strong operational leverage supporting long-term growth ambitions.

Full Transcript OPERATOR Good afternoon and thank you for joining us on Snowflake's second quarter fiscal 2027 earnings call.

Joining me on the call today are Sridhar Ramaswamy, our Chief Executive Officer; Brian Robins, our Chief Financial Officer; and Christian Kleinerman, our Executive Vice President of Product, who will participate in the Q&A session.

During today's call, we will review our financial results for the second quarter fiscal 2027 and discuss our guidance for the third quarter and full year fiscal 2027.

During today's call we will make forward-looking statements, including statements related to our business operations and financial performance.

These statements are subject to risks and uncertainties which could cause them to differ materially from our actual results.

Information concerning these risks and uncertainties is available in our earnings press release, our most recent Forms 10-K and 10-Q, and our other SEC reports.

All our statements are made as of today based on information currently available to us.

Except as required by law, we assume no obligation to update any such statements.

During today's call we will also discuss certain non-GAAP financial measures.

See our investor presentation for the definition of the non-GAAP financial measures and a reconciliation of GAAP to non-GAAP measures and business metric definitions, including customer count and adoption.

The earnings press release and investor presentation are available on our website at investors.snowflake.com.

A replay of today's call will also be posted on the website.

With that, I would now like to turn the call over to Sridhar.

Sridhar Ramaswamy — CEO Thank you, Kathryn, and thank you all for joining us today.

We are in the midst of a once-in-a-lifetime technology shift, and Snowflake remains at the center of the enterprise AI revolution.

AI is fundamentally changing how enterprises build, operate, and make decisions to stay competitive.

Every organization faces a new imperative: become an agentic enterprise and do it quickly, safely, and cost efficiently.

Snowflake is making this transformation a reality.

We bring together the core elements of an agentic enterprise: a governed data foundation, access to leading AI models, deep application workflows, and the unifying agent control plane that orchestrates across these elements to turn intent into governed action.

By putting intelligence to work at scale, our customers are building faster, executing more efficiently, and reimagining their businesses in ways that weren't possible before.

Put simply, the agentic enterprise runs on Snowflake, and the traction is translating into strong business performance as evidenced by our Q2 results.

Product revenue came in at $1.49 billion with growth accelerating to 37% year over year, marking our second consecutive quarter of record sequential dollar growth after exiting Q4 of last fiscal year at 30% year over year growth.