Snowflake reported financial results that exceeded analyst expectations, driving a 22% increase in its stock price during extended trading on Wednesday. The data analytics software company posted revenue growth of 35% year over year for the fiscal second quarter, which concluded on July 31. Net losses narrowed significantly to $191.7 million, or 55 cents per share, compared with $297.9 million, or 89 cents per share, in the prior-year quarter.
A key driver of investor enthusiasm was the performance of Snowflake’s CoCo artificial intelligence coding agent, which has attracted 9,100 accounts and grew by more than 2,000 accounts during the quarterly period. This expansion demonstrated continued momentum in the company’s artificial intelligence offerings.
Looking forward, Snowflake provided guidance that also surpassed consensus expectations. The company projects $1.59 billion in product revenue for the fiscal third quarter, exceeding the $1.50 billion analyst consensus tracked by StreetAccount. Management raised its full-year product revenue forecast to $6.07 billion from $5.84 billion projected in May, reflecting improving business conditions. Additionally, the company forecast a 14.5% adjusted operating margin for the year, widening from the 13.5% previously expected.
Snowflake’s stock performance significantly outpaced broader market gains, with shares up 39% year to date compared with approximately 12% gains in the S&P 500 index. The potential magnitude of the stock’s move suggested it could represent the fourth largest daily jump since the company’s initial public offering in 2020. Management scheduled a conference call with analysts for 5 p.m. ET to discuss the results in greater detail.
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