Snowflake Shares Surge Nearly 20% After Q2 Beat And Upgraded Outlook

Snowflake Inc. (NYSE:SNOW) shares jumped about 19% on Thursday after the cloud data platform provider reported stronger-than-expected fiscal second-quarter results and raised its full-year product revenue guidance.

Revenue for the quarter came in at $1.14 billion, surpassing estimates of $1.09 billion and rising 32% year-over-year. Product revenue reached $1.09 billion, also up 32% and ahead of the $1.04 billion forecast. Net new product revenue totaled $94 million, more than doubling from last year and up 75% from the prior quarter.

The company posted adjusted earnings of $0.38 per share, above consensus of $0.27 and more than double the $0.18 earned a year earlier.

Following the strong quarter, Snowflake raised its FY26 product revenue guidance to $4.40 billion from $4.33 billion, topping the $4.34 billion consensus. The company also lifted its adjusted operating margin outlook to 9% from 8%. For Q3, product revenue is expected at $1.13 billion, slightly above analysts’ forecast of $1.12 billion.

Snowflake’s net revenue retention rate was 125%, down from 127% last year but above the 124% forecast. Current remaining performance obligations climbed 33% to $6.9 billion, beating estimates of $6.78 billion. Professional services revenue rose 38% to $54.5 million, also above expectations.