Snowflake Inc. Q2 2027 Earnings Recap

Snowflake's shares surged 11.5% post-earnings as accelerating product revenue growth and notable margin expansion underscored strengthening demand driven by AI adoption, outpacing market expectations.

Key Takeaways

• Product revenue reached $1.49 billion, accelerating 37% year over year, marking a 7-point improvement over two quarters.
• Non-GAAP operating margin expanded over 400 basis points year over year to 15%.
• Added 692 net new customers this quarter, a 32% year-over-year increase, including 14 from the Global 2000.
• Growing adoption of AI products Cortex Code and CoWork with 11% and rapid quarterly account growth respectively, highlighting structural momentum from AI integration.
• Major enterprise customers continue to deepen platform usage, with 65 now generating over $10 million in trailing 12-month product revenue.