By Christine Ji
The software company’s second-quarter results exceed revenue and earnings predictions
Snowflake raised its full-year revenue outlook late Wednesday.
Snowflake Inc. solidified its reputation as a leading artificial-intelligence data platform late Wednesday after solidly beating Wall Street’s expectations for its fiscal second-quarter earnings.
Snowflake (SNOW) reported revenue of $1.1 billion for the quarter, exceeding FactSet consensus estimates of $1.09 billion and representing a 32% year-over-year increase.
Product revenue made up $1.09 billion of total sales, also up 32% year over year and beating analysts’ estimates of $1.04 billion.
Snowflake posted a $297.9 million GAAP net loss, but achieved $129.3 million of net income on an adjusted basis. That brought the company’s adjusted earnings to 35 cents a share, topping the consensus view of 27 cents a share.
Snowflake guided for $1.125 billion to $1.130 billion in revenue for the fiscal third quarter, higher than the $1.17 billion that analysts are modeling. Accelerating product revenue growth led the company to raise its full-year revenue forecast to $4.395 billion from the $4.325 billion estimate last quarter.
After the results, shares of Snowflake jumped 12% in after-hours trading.
While Snowflake initially rose to prominence as a destination for companies migrating data to the cloud, its growth is now increasingly fueled by the enterprise adoption of AI, which is driving a surge in demand for modern data infrastructure.
Snowflake reached a total of 12,062 customers in the quarter, with 654 of those generating trailing 12-month product revenue exceeding $1 million, the company said.
“Thousands of customers are betting their business on Snowflake and more than 6,100 accounts are using Snowflake’s AI every week,” Chief Executive Sridhar Ramaswamy said in a statement. “We have an enormous opportunity ahead as we continue to empower every enterprise to achieve its full potential through data and AI.”
On the earnings call, Ramaswamy added that 25% of all deployed use cases on the platform involved AI. Recent AI offerings have been met with enthusiasm, and Snowflake is planning to increase the number of AI products it offers. The company’s Snowflake Intelligence agentic AI platform, which launched publicly in June, allows customers to create intelligence agents directly on enterprise data.
Wall Street has been bullish on Snowflake’s growth trajectory leading into the earnings report. Last week, Bank of America upgraded its rating on Snowflake shares to buy, from neutral, with a price target of $240.
Surveys from Bank of America and Jefferies ahead of earnings showed positive trends for Snowflake, with customers increasing their spending and partners raising their growth expectations.
Before the earnings call, Jefferies analyst Brent Thill called Snowflake “one of our top picks as an AI breakout play and trusted data foundation for AI.”
-Christine Ji
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08-27-25 1834ET
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