Business & Finance
Snowflake shares jump 22% on strong earnings and raised annual outlook
The cloud software company beat fiscal second-quarter projections and boosted its full-year guidance, driven by revenue expansion and AI adoption.
The short version
- Snowflake reported fiscal second-quarter revenue of $1.55 billion and adjusted earnings per share of 62 cents, both surpassing analyst expectations.
- The software maker raised its full-year product revenue forecast to $6.07 billion and adjusted operating margin guidance to 14.5%.
- Company shares rose 22% in extended trading following the report, alongside growth in adoption of its AI coding tool.
Key facts
- Snowflake reported fiscal second-quarter revenue of $1.55 billion, a 35% increase year over year and above the $1.48 billion expected by LSEG consensus.[CNBC]
- Adjusted earnings per share reached 62 cents, exceeding the 45 cents per share projected by analysts.[CNBC]
- The company narrowed its GAAP net loss to $191.7 million (55 cents per share) from $297.9 million (89 cents per share) in the same quarter the prior year.[CNBC]
- Snowflake raised its full-year product revenue outlook to $6.07 billion, up from $5.84 billion projected in May, and lifted its adjusted operating margin forecast to 14.5%.[CNBC]
- Adoption of Snowflake's CoCo AI coding agent grew by more than 2,000 accounts during the quarter, reaching a total of 9,100 accounts.[CNBC]
What remains uncertain
- Whether the stock's after-hours 22% surge will hold during standard market trading hours.[CNBC]