Snowflake shares jumped in extended trading Wednesday after the cloud software company reported second-quarter earnings and revenue that exceeded Wall Street expectations. The company also raised its full-year product revenue forecast, citing growing demand for artificial intelligence tools and data-management services.
Snowflake Earnings Beat Wall Street Estimates
Snowflake reported adjusted earnings of 62 cents per share, a 77% increase from the same period a year earlier. Analysts had expected adjusted earnings of 45 cents per share.
Quarterly revenue rose 35% year over year to $1.55 billion, topping the consensus estimate of $1.48 billion.
The enterprise software company released its financial results after the stock market closed.
Product Revenue Forecast Raised
For the October quarter, Snowflake projected product revenue of $1.59 billion. That forecast was well above analysts’ consensus estimate of $1.504 billion.
Snowflake also increased its product revenue growth outlook for fiscal 2026 to 36%, up from its previous projection of 31%.
Following the report, Snowflake stock surged more than 20% to approximately $370.01 in after-hours trading. Shares had already gained 47% in 2026 before the earnings announcement.
Artificial Intelligence Products Drive Customer Interest
Snowflake provides data analytics and cloud-based data-management software. Its technology operates across major cloud-computing platforms and helps businesses organize, analyze and use large volumes of corporate data.
Investors and analysts are increasingly focused on customer demand for the company’s newer AI products. These include Cortex Code, a collection of cloud-based tools designed to run AI models and autonomous agents.
Snowflake Intelligence, meanwhile, is an enterprise platform built on Cortex that allows organizations to interact with and analyze their data using AI-powered capabilities.
Snowflake Positions Itself Between Data and AI Models
Bullish analysts view Snowflake as an important control layer connecting enterprise data with AI models developed by OpenAI, Anthropic, Google parent Alphabet and other technology companies.
Privately held Databricks remains one of Snowflake’s largest competitors, alongside Microsoft Fabric.
Businesses across multiple industries are testing autonomous, goal-oriented AI agents capable of completing complex tasks with limited human involvement. Snowflake aims to help those customers update their data storage and management systems so they can safely develop and deploy their own AI agents.
Consumption-Based Business Model Remains Central
Unlike many enterprise software providers, Snowflake does not primarily depend on traditional subscriptions. The company operates a consumption-based business model, charging customers according to how much of its software and computing capacity they use.
That model can benefit Snowflake when customer activity rises, although it may also make quarterly revenue trends more dependent on changes in client usage.
Snowflake expanded its software portfolio in early 2026 by agreeing to acquire Observe for approximately $1 billion. Based in San Mateo, California, Observe operates an observability platform that helps software developers and information technology departments monitor and analyze the performance of applications and systems.
Snowflake Stock Receives Strong Technical Ratings
According to IBD Stock Checkup, Snowflake shares hold an IBD Composite Rating of 99, the highest possible score. The Composite Rating combines five proprietary performance measures into a single assessment.
Snowflake also has an Accumulation/Distribution Rating of A+, indicating heavy institutional buying. The rating ranges from A+ to E, with A+ representing the strongest level of institutional accumulation and E signaling heavy selling.
Snowflake’s stronger-than-expected quarterly results, higher revenue forecast and expanding AI product portfolio reinforced investor confidence in the company’s growth strategy. Continued adoption of its data and AI tools will be a key factor in determining whether the stock can sustain its momentum.