Results
Snowflake Reports Financial Results for the Second Quarter of Fiscal 2027
Product revenue of $1.49 billion in the second quarter, representing 37% year-over-year growth
Financial Highlights:
6Revenue of $1.55 billion in the second quarter, representing 35% year-over-year growth
Net revenue retention rate of 126%
828 customers with trailing 12-month product revenue greater than $1 million, representing 27% year-over-year growth
829 Forbes Global 2000 customers
Remaining performance obligations of $9.00 billion, representing 30% year-over-year growth
Management commentary
"Snowflake delivered another strong quarter, with product revenue of $1.49 billion, up 37% year-over-year, as Snowflake continues to power the enterprise AI revolution,” said Sridhar Ramaswamy, CEO of Snowflake.
“AI continues to compound our advantages, creating a flywheel effect across the business.
CoWork and CoCo are driving transformational outcomes for our customers, while fueling rapid adoption, user growth, new workloads, and overall platform consumption.
Our rapid pace of innovation, tight go-to-market execution, and operational discipline position us well to capture the opportunity ahead.
The Agentic Enterprise runs on Snowflake, and we're just getting started."
“Q2 marks our third consecutive quarter of product revenue growth acceleration, driven by strength in both our core data platform and a meaningful step-up in AI revenue,” said Brian Robins, CFO of Snowflake.
“Importantly, we delivered this accelerating growth while expanding operating margin.
1Balancing growth with discipline remains a top priority, and we are raising our full-year product revenue growth guidance to 36% year-over-year.”Guidance raised
Results
3AI Momentum : CoCo surpassed 9,100 accounts 1 , adding more than 2,000 accounts in the quarter alone, while CoWork expanded to 5,800 accounts 1 .
Corporate events
Accelerated Product Velocity: Launched over 330 product capabilities to general availability in the first half of fiscal 2027, up 35% year-over-year, and recently introduced Cortex Sense for business context and Cortex AI Gateway, which extends AI from insight to action through its integration of Natoma.
Management commentary
AI Customer Wins : Customers like 1Password and Indeed chose Snowflake as the foundation for their data and AI transformation.
5Sayari cut costs by more than half and is using CoCo to accelerate the migration of 12 billion records.
Results
8Customer Growth : Added 692 net new customers in the quarter, up 32% year-over-year, including 14 net new Forbes Global 2000 customers.
Outlook
Financial Outlook:
For the third quarter of fiscal 2027, the company expects:
7Product revenue of $1,588 million to $1,593 million, representing 37% to 38% year-over-year growth
Non-GAAP operating margin 2 of 15.5%
Non-GAAP weighted-average shares used in computing net income per share attributable to common stockholders—diluted 2,3 of 382 million
For the full-year of fiscal 2027, the company expects:
2Product revenue of $6,070 million, representing 36% year-over-year growth, up from previous guidance of $5,840 million, or 31% year-over-year growthGuidance raised
Non-GAAP product gross margin 2 of 74.0%
4Non-GAAP operating margin 2 of 14.5%, up from previous guidance of 13.5%Guidance raised
Non-GAAP adjusted free cash flow margin 2 of 23.0%
Non-GAAP weighted-average shares used in computing net income per share attributable to common stockholders—diluted 2,3 of 380 million
3 The potential impact of future repurchases under our stock repurchase program is not reflected in our guidance for weighted-average shares used in computing net income per share attributable to common stockholders—diluted due to the uncertainty regarding, and the potential variability of, the timing and amount of repurchases.
Additionally, the dilutive effect of the shares issuable upon conversion of our 0% convertible senior notes due 2027 and 0% convertible senior notes due 2029 (the Notes) using the if-converted method, estimated at approximately 10 million shares for each of the third quarter and full-year of fiscal 2027 based on the current conversion price and net of the potential antidilutive impact of the capped call transactions entered into in connection with the Notes (the Capped Calls), is reflected in our guidance for weighted-average shares used in computing net income per share attributable to common stockholders—diluted.
Upon conversion of the Notes, we may choose to satisfy our conversion obligations by paying or delivering, as the case may be, cash, shares of our common stock, or a combination of both.
The Capped Calls will have an antidilutive impact when the average stock price of our common stock in a given period is higher than their exercise price.
The estimated antidilutive impact of the Capped Calls reflected in our guidance is based on the market price of our common stock as of July 31, 2026, and is subject to change with future stock price movements.
Results
Second Quarter Fiscal 2027 GAAP and Non-GAAP Results:
The following table summarizes our financial results for the second quarter of fiscal 2027:
109 boilerplate lines (safe-harbor disclaimer, contacts, call details) are set aside.