Snowflake Inc. (SNOW) Announced Q2 2027 Earnings on September 2, 2026, Reporting "Product revenue came in at $1.49 billion with growth accelerating to 37% year-over-year"

Financial Results For the second quarter of fiscal 2027, Snowflake reported product revenue of $1.49 billion, representing 37% year-over-year growth, which marks the company's third straight quarter of product revenue acceleration.

Remaining performance obligations grew 30% year-over-year to reach $9 billion, with approximately 54% expected to be recognized as revenue in the next 12 months.

The company achieved a net revenue retention rate of 126% and expanded its non-GAAP operating margin by more than 400 basis points year-over-year to 15%.

Additionally, Snowflake ended the quarter with $4.3 billion in cash, cash equivalents, short-term, and long-term investments.

Business Updates and Product Announcements Management highlighted strong traction in transitioning organizations into what they call the Agentic Enterprise.

Their first-party AI products are seeing rapid adoption, with CoWork expanding to 5,800 accounts, representing nearly 11% quarter-over-quarter growth, while CoCo surpassed 9,100 accounts after adding more than 2,000 net new accounts in the quarter.

Snowflake also introduced Cortex AI Gateway, which dynamically routes tasks to appropriate models with built-in cost and governance controls, integrating technology from the Natoma acquisition.

Internally, management has deployed CoCo and CoWork across marketing, sales, and finance, including automating prospecting for over 125,000 contacts and leads.

Forward Guidance For the third quarter of fiscal 2027, Snowflake expects product revenue between $1.588 billion and $1.593 billion, representing 37% to 38% year-over-year growth, with a non-GAAP operating margin of 15.5%.

For the full fiscal year 2027, the company raised its product revenue guidance to $6.07 billion, representing 36% year-over-year growth, which includes approximately 1 percentage point of growth from Observe.

Full-year non-GAAP operating margin guidance was increased from 13.5% to 14.5%, while the non-GAAP product gross margin is expected to be 74%, reflecting a higher revenue mix from fast-growing AI workloads that carry lower contribution margins.

The company reiterated its full-year non-GAAP adjusted free cash flow margin guidance of 23%.

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