Cloud data specialist Snowflake has announced a robust financial performance for the second quarter of fiscal year 2026, considerably exceeding market predictions for both earnings and sales. This positive outcome is largely fueled by the expanded use of its advanced AI-driven software across its client base, leading to a significant increase in its shares and an optimistic revised annual revenue outlook.
During the second fiscal quarter of 2026, Snowflake recorded adjusted earnings per share of $0.35 on a revenue of $1.14 billion, marking a 32% year-over-year increase. These figures comfortably surpassed analysts' projections of $0.27 EPS and $1.09 billion in revenue, with product revenue alone reaching $1.09 billion. The company's net revenue retention rate stood strong at 125%, and it saw an increase of 48 customers generating over $1 million in product revenue from the previous quarter, bringing the total to 654. CEO Sridhar Ramaswamy highlighted the widespread adoption of Snowflake’s AI technology, with over 6,100 accounts utilizing it weekly, emphasizing the immense future opportunities in empowering businesses through data and artificial intelligence. Consequently, Snowflake has raised its full-year product revenue forecast to approximately $4.40 billion, reflecting a 27% growth, up from an earlier estimate of 25% growth to $4.33 billion.
Snowflake's impressive growth trajectory and strategic focus on AI innovation are testaments to its commitment to advancing data capabilities for businesses worldwide. By consistently outperforming expectations and demonstrating a strong growth in its customer base, particularly those with high revenue, Snowflake is not just achieving financial success but also playing a pivotal role in shaping the future of enterprise data management and artificial intelligence. This sustained momentum suggests a future where data-driven insights and AI capabilities will increasingly empower businesses to unlock their full potential, fostering innovation and efficiency across industries.