Snowflake Posts 37% Product Revenue Growth in Fiscal Q2, Raises Full-Year Outlook

Snowflake reported second-quarter fiscal 2027 revenue of $1.55 billion, up 35% year-over-year, and raised its full-year product revenue growth guidance to 36%, according to a filing with the SEC.

Product revenue for the quarter ended July 31, 2026 came in at $1.49 billion, a 37% increase from a year earlier. The company's net revenue retention rate stood at 126%, and remaining performance obligations reached $9.00 billion, up 30% year-over-year.

Snowflake said it now has 828 customers with trailing 12-month product revenue greater than $1 million, a 27% increase from the prior year, and 829 Forbes Global 2000 customers. The company added 692 net new customers during the quarter, including 14 net new Forbes Global 2000 customers, up 32% year-over-year.

CEO Sridhar Ramaswamy said the company delivered product revenue growth of 37% as it continues to power what he called the enterprise AI revolution. CFO Brian Robins noted that the second quarter marked the third consecutive quarter of product revenue growth acceleration, driven by strength in the core data platform and a step-up in AI revenue, while operating margin also expanded.

The company's CoCo offering surpassed 9,100 accounts, adding more than 2,000 in the quarter, while CoWork expanded to 5,800 accounts, based on averages from the last four weeks of the quarter. Snowflake launched more than 330 product capabilities to general availability in the first half of fiscal 2027, a 35% increase year-over-year, and introduced Cortex Sense and Cortex AI Gateway, the latter incorporating its integration of Natoma. Customers cited included 1Password, Indeed, and Sayari, which the filing said cut costs by more than half while using CoCo to migrate 12 billion records.

For the third quarter of fiscal 2027, Snowflake expects product revenue of $1,588 million to $1,593 million, representing 37% to 38% year-over-year growth, and a non-GAAP operating margin of 15.5%. For the full fiscal year, the company raised its product revenue guidance to $6,070 million, representing 36% year-over-year growth, up from a prior forecast of $5,840 million, or 31% growth. Full-year non-GAAP operating margin guidance was also raised to 14.5% from 13.5%.

Finazon · prior-day close · Sep 1, 2026