Snowflake announced second-quarter results that exceeded analyst expectations, driving a 22% increase in share value during after-hours trading on Wednesday. The data analytics software provider reported revenue growth of 35% year-over-year for the quarter ending July 31. The company’s net loss narrowed to $191.7 million, or 55 cents per share, compared with a loss of $297.9 million, or 89 cents per share, in the prior-year period.
The company attributed part of its performance to strong adoption of its CoCo artificial intelligence coding agent, which reached 9,100 accounts during the quarter, representing an increase of over 2,000 accounts from the prior quarter. This product line has emerged as a significant driver of engagement and revenue expansion.
Looking ahead, Snowflake provided forward guidance that outpaced analyst consensus. For the fiscal third quarter, the company projects product revenue of $1.59 billion, exceeding the $1.50 billion consensus estimate from analysts surveyed by StreetAccount. The company also raised its full-year product revenue forecast to $6.07 billion, up from its May projection of $5.84 billion. Additionally, management lifted its adjusted operating margin guidance for the fiscal year to 14.5%, compared with the 13.5% margin it had previously projected in May.
The stock’s performance places it among the company’s strongest post-public trading days. Through Wednesday’s close, Snowflake shares had gained 39% for the period, outpacing the S&P 500 index, which advanced approximately 12% over the same timeframe. Depending on Thursday’s opening performance, the after-hours surge would represent the fourth highest daily jump since Snowflake’s public debut in 2020. Company executives were scheduled to discuss the results with analysts during a conference call beginning at 5 p.m. ET.
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