Snowflake raised its fiscal-year product-revenue forecast to $6.07 billion after reporting second-quarter revenue above Wall Street expectations and adjusted, non-GAAP earnings of 62 cents a share, also above estimates. Shares rose 22% in extended trading after the results, according to CNBC.
For the quarter ended July 31, Snowflake posted $1.55 billion in total revenue, up 35% from a year earlier, CNBC reported. Its adjusted, non-GAAP earnings of 62 cents a share exceeded the 45-cent consensus estimate compiled by LSEG, while revenue topped the $1.48 billion LSEG estimate. The company also reported a GAAP net loss of $191.7 million, or 55 cents a share, narrower than a $297.9 million loss, or 89 cents a share, a year earlier.
Forecast moves higher for a third time
In its February results release, Snowflake forecast $5.66 billion in full-year fiscal-2027 product revenue and a 12.5% non-GAAP operating margin. That official Snowflake release provides the baseline for a year in which Snowflake has repeatedly raised its product-revenue and adjusted operating-margin targets.
By May, Snowflake had lifted its product-revenue outlook to $5.84 billion and its adjusted operating-margin target to 13.5%, according to Yahoo Finance’s report on the first-quarter results. The new $6.07 billion target is $230 million, or about 3.9%, above the May forecast and $410 million, or roughly 7.2%, above February’s original target.
The adjusted operating-margin target has risen two percentage points from February to 14.5%, including a one-point increase from May. These are forward-looking targets rather than reported results.
Total revenue and product revenue are different measures
Snowflake’s $1.55 billion second-quarter figure is total revenue, while its $1.59 billion third-quarter outlook is for product revenue, a narrower category, so the two are not a direct sequential comparison. CNBC said the third-quarter product-revenue projection was $90 million above the $1.50 billion StreetAccount consensus estimate. CNBC also reported that shares rose 22% in extended trading after the release.
The $6.07 billion full-year target likewise refers to product revenue, not companywide revenue. The 62-cent figure is adjusted, non-GAAP earnings, whereas the $191.7 million loss is a GAAP measure. The reported GAAP loss narrowed by $106.2 million, or about 36%, from a year earlier, while adjusted EPS exceeded the LSEG estimate; those reported results provide a limited indication of improvement without making the measures interchangeable.
AI coding product remains an unquantified factor
Snowflake tied part of its outlook to Cortex Code, its AI coding agent known internally as CoCo. CNBC reported that the company said CoCo had 9,100 accounts in the quarter, more than 2,000 above the prior quarter. Chief Financial Officer Brian Robins said Cortex Code was the largest driver behind the upgraded guidance after its February general availability, Yahoo Finance reported.
The cited reports do not disclose product revenue for CoCo or establish how much of the revenue beat or guidance increase can be attributed to it. Account comparisons also remain uncertain: Snowflake’s February release said more than 9,100 accounts used Snowflake AI features, while CNBC later described 9,100 CoCo accounts. Those labels appear to cover different scopes. Yahoo Finance reported more than 7,100 customer accounts using the product in May, but the available description does not fully specify its measurement methodology.
The latest supported outlook is $6.07 billion in fiscal-year product revenue and a 14.5% adjusted operating margin; the available reporting does not quantify Cortex Code’s contribution to either target.