Snowflake shares rose 22% in extended trading on Wednesday following the release of its fiscal second-quarter financial results and updated guidance that exceeded analyst expectations. The data analytics software provider reported revenue growth of 35% year over year for the quarter ending July 31, while simultaneously reducing its net loss 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.
A significant driver of investor enthusiasm was the performance of the company’s CoCo artificial intelligence coding agent, which the company highlighted as a key growth area. The product attracted 9,100 accounts, representing an increase of more than 2,000 during the quarter, demonstrating sustained adoption momentum in the company’s AI offerings.
Snowflake raised its financial targets for both the near and medium term. For the fiscal third quarter, the company projected $1.59 billion in product revenue, surpassing the $1.50 billion consensus estimate from analysts surveyed by StreetAccount. More substantially, management increased its full-year product revenue forecast to $6.07 billion from the $5.84 billion projection issued in May. Additionally, the company raised its adjusted operating margin guidance to 14.5% from 13.5%, indicating improved profitability expectations.
The strong post-earnings move positioned Snowflake for potentially significant gains the following trading day. As of Wednesday’s market close, the stock had appreciated 39% year to date, outpacing the S&P 500’s gain of approximately 12% during the same period. Should the stock perform as strongly on Thursday as it had during after-hours trading Wednesday, it would mark one of the four largest single-day jumps since the company’s 2020 initial public offering. Company executives were scheduled to discuss the results with analysts during a conference call commencing at 5 p.m. ET.
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