Snowflake stock jumps 22% on $704M revenue beat

Snowflake shares surged 22% in after-hours trading on Wednesday after the cloud data platform reported stronger-than-expected earnings and raised its revenue outlook, driven by growing demand for its AI-powered tools.

The company’s revenue climbed 35% year over year to $704 million in its fiscal second quarter, beating analyst estimates, while its net loss narrowed to $191.7 million from $297.9 million a year ago. A key driver was its AI coding assistant, CoCo, which added over 2,000 new accounts in the quarter, bringing the total to 9,100. The results underscore how Snowflake is capitalizing on the AI boom, with businesses increasingly adopting its data and analytics services to build and deploy AI applications.

For the current quarter, Snowflake projected product revenue of $1.59 billion, well above the $1.50 billion analysts had anticipated. It also lifted its full-year revenue forecast to $6.07 billion, up from $5.84 billion previously, and now expects a 14.5% adjusted operating margin, an improvement from its prior 13.5% target. The strong guidance reflects confidence in sustained demand, particularly for its AI and data cloud offerings.

If the stock’s after-hours gains hold through Thursday’s trading, it would mark Snowflake’s fourth-largest single-day jump since its 2020 IPO. The company’s shares have already outperformed the broader market this year, rising 39% compared to the S&P 500’s 12% gain. Investors are betting that Snowflake’s early moves in AI—paired with its core data storage and analytics business—will keep growth on an upward trajectory.