Snowflake Stock Jumps 24 Percent After AI Products Drive Stronger Than Expected Revenue Growth

<p>Snowflake shares surged as much as 24 percent in early September 2026 after the cloud data company reported fiscal second-quarter revenue of $1.55 billion, up 35 percent year over year. The results beat Wall Street expectations and pushed the stock sharply higher in premarket trading.</p>

<p>Product revenue, the company's primary metric, grew 37 percent year over year to $1.49 billion. Adjusted earnings per share came in at $0.62, well above the $0.45 analysts had expected. CEO Sridhar Ramaswamy said AI-related products accounted for nearly half of the company's growth acceleration during the quarter.</p>

<p>Two AI products drove much of the gain. Snowflake's AI coding assistant, Cortex Code, added more than 2,000 new accounts during the quarter to reach a total of 9,100. The company's enterprise chatbot, CoWork, reached 5,800 accounts. Ramaswamy said the AI tools create a "flywheel" effect: AI-powered projects require more data consumption on the platform, which in turn increases core compute and storage usage.</p>

<p>Snowflake raised its full-year product revenue guidance to $6.07 billion, up from its previous projection of $5.84 billion. The company also increased its projected adjusted operating margin to 14.5 percent. At least 22 brokerages raised their price targets for the stock following the report.</p>

<p>The results offered fresh evidence that enterprise AI spending is beginning to lift the underlying data platforms required to make AI useful inside companies. Analysts said the quarter countered earlier fears that AI could disrupt software-as-a-service business models by reducing the need for traditional data infrastructure.</p>