Snowflake Shares Surge 20% After Beating Earnings Expectations

Snowflake shares climbed more than 20% in extended trading on Wednesday following second-quarter financial results and guidance that surpassed analyst expectations. The data analytics software company reported overall revenue of $1.55 billion, representing a 35% year-over-year increase, and adjusted earnings per share of 62 cents, beating the expected 45 cents.

Management attributed the growth to AI adoption, legacy-system migrations, and strong demand for its cloud data platform. The company specifically highlighted the momentum of its CoCo AI coding agent, which has expanded to 9,100 accounts. Based on these results, Snowflake raised its full-year product revenue forecast to $6.07 billion from $5.84 billion and increased its projected adjusted operating margin to 14.5%.

In a related strategic move, the company entered a five-year, $6 billion agreement with Amazon Web Services. Under the terms of the deal, Snowflake will utilize Graviton processors and AI infrastructure to support its operations.