Snowflake Q2: Revenue up 35% to $1.55B, guidance lifted and stock jumps 20%+ after hours

Snowflake reported second-quarter results that beat revenue expectations and included stronger-than-expected product-revenue guidance for the next quarter and full fiscal 2027. Revenue rose 35% year over year to $1.55 billion versus a $1.48 billion estimate. The company reported a net loss of $191.7 million. After the release the stock jumped more than 20% in after-hours trading.

The headline revenue beat and raised guidance were the immediate drivers of the big stock move. Market coverage ties the momentum to customer adoption of AI workflows on Snowflake's platform: companies building AI tools on top of their data are increasing usage of Snowflake's services, which can raise consumption and product revenue. The company's guidance for product revenue in Q3 and for fiscal 2027 came in above analyst expectations, which signaled stronger near-term growth.

• Q2 revenue: $1.55 billion (up 35% year over year) vs. $1.48 billion consensus.
• Q2 net loss: $191.7 million.
• Post-earnings: SNOW stock jumped more than 20% after hours.

While Snowflake beat on revenue and raised guidance, one longer-term metric moved in the opposite direction. Remaining performance obligations (RPO), the contracted but unrecognized revenue that signals near-term revenue conversion, was highlighted as the number that went the other way. That figure drew attention because it looks further into booked, future revenue rather than current consumption trends.

What this means for customers and investors

For customers and partners: increased customer activity around AI workloads suggests more data being processed and more services consumed on Snowflake's platform. That tends to translate into higher variable product revenue as organizations run models, queries, and pipelines.

For investors: the beat plus raised guidance suggests stronger demand and a revenue trajectory that could support higher valuations if the mix and retention metrics hold. Watch RPO and retention closely: they provide a signal about how much of the revenue beat is sustainable through contracted business.

• RPO and any commentary on contracted pipeline: a decline or slowdown could temper enthusiasm.
• Customer concentration and retention metrics: higher consumption tied to AI could be sticky if customers continue to expand usage.

Snowflake's quarter combined a clear revenue beat with raised forward guidance, and the market rewarded the company with a large after-hours rally. The disclosure of a meaningful net loss and a weaker RPO figure temper the headline strength, so follow-up quarters will be important to confirm whether AI-driven consumption converts to sustained product revenue growth.