Snowflake Stock Jumps 17% on Q2 FY2027 Beat as Product Revenue Guidance Raised to $6.1 Billion

Snowflake reported second-quarter fiscal 2027 results on September 2, 2026, for the quarter ended July 31. Product revenue was $1.49 billion, up 37% year-over-year, beating the $1.48 billion consensus estimate. Adjusted earnings were $0.62 per share, well ahead of the $0.45 Wall Street forecast.

Customer Growth and Product Adoption

• 692 net new customers added in the quarter, up 32% year-over-year
• CoCo, Snowflake's coding agent launched in February 2026, is now used by more than 9,100 customer accounts
• 828 customers now have trailing 12-month product revenue greater than $1 million, up 27% year-over-year

Raised Guidance

Snowflake raised its fiscal 2027 product revenue guidance to $6.1 billion, up from a prior $5.84 billion, implying roughly 36% growth. The company also forecast adjusted operating margin improving to 14.5%, up from 10% previously and ahead of its earlier 13.5% guidance.

Market Reaction

Shares jumped roughly 17% following the report — a notably different market reaction than several other software vendors have seen this earnings season despite comparably strong headline numbers, underscoring that the size of a guidance raise relative to what was already priced in matters as much as the raise itself.

What This Means for Data Platform Buyers

CoCo's adoption across more than 9,100 customer accounts just seven months after launch is a specific, concrete data point on how quickly an AI-native product can gain traction when embedded directly into an existing widely-used data platform, rather than launched as a standalone tool. For organizations evaluating cloud data warehouse vendors, the combination of accelerating product revenue growth, expanding operating margin, and fast native AI-feature adoption is a stronger multi-dimensional signal than any single metric.