Snowflake’s stock climbed 22% in after-hours trading following the release of its fiscal second-quarter earnings, which demonstrated strong financial performance relative to consensus forecasts.
The data analytics software company reported revenue growth of 35% year-over-year for the quarter ended July 31. The organization posted a net loss of $191.7 million, equivalent to 55 cents per share, a significant improvement from the prior-year period when it recorded a net loss of $297.9 million, or 89 cents per share.
A key driver of investor enthusiasm centered on the company’s CoCo artificial intelligence coding agent, which has attracted 9,100 accounts, reflecting an addition of more than 2,000 accounts during the quarter. The company credited this product category with contributing to its strong operational momentum.
Looking ahead, Snowflake issued forward guidance that also beat analyst expectations. For the fiscal third quarter, the company projected product revenue of $1.59 billion, exceeding the $1.50 billion consensus estimate. The company raised its full-year product revenue forecast to $6.07 billion from the $5.84 billion projection it had provided in May. Additionally, management increased its adjusted operating margin guidance to 14.5% from the 13.5% figure previously communicated.
As of the prior market close, Snowflake shares had gained approximately 39% over a specified period, while the S&P 500 had advanced roughly 12% during the same timeframe. Should the stock maintain its after-hours trajectory when markets reopen, the movement would rank among the most significant single-day increases since the company’s initial public offering in 2020.
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