Snowflake shares rose more than 20% in extended trading on September 2 after the cloud-data company raised its fiscal 2027 product-revenue forecast, citing demand for its platform and artificial intelligence offerings. The after-hours move followed a quarterly report that showed product revenue growth accelerating ahead of the revised annual target, according to Reuters via Investing.com.
Snowflake raises fiscal 2027 product-revenue target to $6.07 billion
Snowflake raised its fiscal 2027 product-revenue guidance by $230 million to $6.07 billion, implying 36% year-over-year growth versus its previous forecast of $5.84 billion and 31% growth. The revised outlook, which increases the expected growth rate by five percentage points, was disclosed in the company’s fiscal second-quarter earnings release filed with the Securities and Exchange Commission.
Q2 product revenue grew 37% to $1.49 billion
For fiscal Q2 2027, Snowflake reported total revenue of $1.55 billion, up 35% from a year earlier. Product revenue was $1.49 billion, a 37% year-over-year increase.
The distinction matters because the company’s raised annual forecast applies to product revenue rather than total revenue. The quarter’s 37% product-revenue growth was also one percentage point above the 36% growth rate Snowflake now expects for the full fiscal year.
Official Snowflake fiscal Q2 2027 earnings filing visual. — Source: U.S. Securities and Exchange Commission filing exhibit
CoCo and CoWork account growth supports AI demand claim
Management pointed to expanding adoption of its AI products as part of the demand picture. Snowflake said CoCo had surpassed 9,100 accounts, while CoWork had expanded to 5,800 accounts.
The company’s chief executive said AI was driving adoption, user growth and new workloads. Those account figures provide the operating context for Snowflake’s claim that AI offerings are contributing to demand for its cloud data platform, while the higher product-revenue target was the immediate catalyst for the stock’s after-hours rally.
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Source: Crypto Daily