Snowflake (NYSE:SNOW) shares rose 23.9% to $379.07 in premarket trading after the company reported fiscal second-quarter 2027 revenue and adjusted earnings above analyst expectations and increased its full-year product revenue guidance.
Adjusted earnings per share were $0.62, compared with the consensus estimate of $0.45. Total revenue reached $1.55 billion, above the $1.48 billion analyst estimate and representing a 35% increase from the prior-year period.
Product Revenue Increases 37%
Product revenue was $1.49 billion, an increase of 37% year over year and the third consecutive quarter in which its growth rate accelerated.
Snowflake also reported increased adoption of its AI products. CoCo reached 9,100 customer accounts, while CoWork expanded to 5,800 accounts. According to the source material, the two products accounted for approximately half of the incremental acceleration in revenue during the quarter.
Snowflake Raises FY2027 Product Revenue Forecast
Management increased its full-year fiscal 2027 product revenue forecast to $6.07 billion from $5.84 billion.
For the third quarter, the company forecast product revenue of approximately $1.59 billion, compared with an analyst consensus estimate of $1.50 billion.
Snowflake’s non-GAAP operating margin was 15.3%, compared with 11% in the same period a year earlier.
Analysts Raise Snowflake Price Targets
Several analysts had increased their price targets for Snowflake ahead of the quarterly report.
Cantor Fitzgerald raised its target to $405, while Citigroup increased its target to $395. KeyBanc set a $375 target and TD Cowen raised its target to $370.
The broader US equity market was modestly higher, with the S&P 500, Dow Jones and Nasdaq each gaining approximately 0.2%.
Following its premarket increase, Snowflake shares were trading above the previous 52-week high of $341.95.
Snowflake stock price