EarningsQ2 2027 Earnings Report
MX:SNOW Q2 2027 EPS Results
Actual EPS$11.34
Consensus EPS$8.18
Beat/MissBeat by +$3.16
One Year Ago EPS$6.40
MX:SNOW Q2 2027 Revenue Results
Actual Revenue$28.30B
Expected Revenue$27.13B
Beat/MissBeat by +$1.16B
YoY Revenue Growth+35.09%
Earnings Announcement Details
QuarterQ2 2027
Date09/02/2026
TimeAfter Close
Conference CallWednesday, September 2, 2026
MX:SNOW Upcoming Earnings
Snowflake's next earnings date is estimated for December 2, 2026, based on past reporting schedules.
Q2 2027 Earnings Call Audio
MX:SNOW Q2 2027 Earnings Call
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Q2 2027 Earnings Slide Deck
Q2 2027 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive, with accelerating 37% product revenue growth, more than 400 basis points of non-GAAP operating margin expansion, robust customer and AI-product adoption, higher full-year revenue guidance, and multiple examples of customer and internal productivity gains. The principal negatives were the lower 74% product gross margin outlook due to the current mix of lower-contribution-margin AI workloads, growing cloud costs, and Q4-weighted bookings. Overall, the highlights significantly outweighed the lowlights.Company Guidance
Product Revenue Growth Accelerated
Q2 product revenue reached $1.49 billion, increasing 37% year over year. This was the third straight quarter of acceleration, followed a 7-point acceleration from the 30% year-over-year growth rate exiting two quarters earlier, and marked the second consecutive quarter of record sequential dollar growth.
Operating Margin Expansion
Q2 non-GAAP operating margin expanded by more than 400 basis points year over year to 15%, driven by strong revenue growth and disciplined headcount management.
Raised Fiscal 2027 Revenue Guidance
Snowflake raised fiscal 2027 product revenue guidance to $6.07 billion, representing 36% year-over-year growth and an increase of over 500 basis points in the year-over-year growth outlook. Approximately 1 percentage point of growth is expected from Observe.
Strong Third-Quarter Outlook
For Q3, Snowflake expects product revenue between $1.588 billion and $1.593 billion, representing 37% to 38% year-over-year growth. Q3 non-GAAP operating margin is expected to be 15.5%.
Large and Expanding Customer Base
Snowflake reached 14.6 thousand customers worldwide and added 692 net new customers in Q2, including 14 from the Global 2,000. Net new customer additions increased 32% year over year. The company now has 829 Global 2,000 customers, and its AI Data Cloud supports over 41% of the Global 2,000.
Healthy Customer Expansion and Large-Account Growth
Net revenue retention was 126%. Forty-eight net new customers reached more than $1 million in trailing 12-month spend, bringing the total number of customers above that threshold to 828. Sixty-five customers now generate more than $10 million in trailing 12-month product revenue.
Remaining Performance Obligations Increased
Remaining performance obligations grew 30% year over year to $9 billion. Snowflake expects approximately 54% of RPO to be recognized as revenue in the next 12 months, representing approximately 42% year-over-year growth compared with the estimate provided in the same quarter last year.
Rapid AI Product Adoption
Cortex Code expanded to 5.8 thousand accounts, up nearly 11% quarter over quarter. CoWork surpassed 9.1 thousand accounts and added more than 2,000 net new accounts during the quarter.
AI Products Contributed Meaningfully to Acceleration
Management said AI products contributed approximately half of the acceleration in product revenue growth. The contribution came from Cortex Code, CoWork, AI functions, document processing, machine learning, notebooks, applications deployed in Snowflake, and the AI gateway.
AI Increased Core Platform Consumption
Management stated that customers using Cortex Code and other AI products are also consuming more of the core Snowflake platform, creating a flywheel across AI adoption, new workloads, and broader platform consumption.
Migration and Workload Growth Accelerated
The number of customer use cases deployed on Snowflake increased 89% year over year, while use cases per account executive increased 43% year over year. Management also cited a large network equipment manufacturer completing a Teradata migration in less than three quarters, compared with an estimated two to three years previously.
Notable Customer Migration and Performance Results
One of the largest Australian banks migrated its financial crime platform to Snowflake, processing 17 billion transactions and delivering 10x faster query performance. The bank is now building AI agents to accelerate migration of the rest of its data estate and automate legacy data discovery and mapping.
Customer Cost and Efficiency Benefits
Sayari chose Snowflake to rebuild its global data infrastructure and cut costs by more than 50%; its engineers are using CoWork to accelerate migration of 12 billion records into an AI-ready foundation. Indeed rolled out Cortex Code and CoWork across its data teams and cited lower cost and greater efficiency across operations in over 60 countries and 28 languages.
Broader Data Sharing and Collaboration
Forty-three percent of Snowflake customers share data on Snowflake with at least one stable edge. Management cited Credit One's use of Snowflake data-sharing capabilities to facilitate privacy-safe ads measurement.
Expanded AI Platform Capabilities
Snowflake introduced or expanded model choice, post-training, agent observability and analytics, Cortex AI Gateway, Cortex Sense, and Natoma integrations. The AI Gateway dynamically routes tasks to models based on customer-defined policies and real-world performance data, with cost and governance controls built in.
Model Neutrality and Open-Model Flexibility
Management said customers are showing strong interest in switching among frontier and open-source models, optimizing cost, and post-training open models. Snowflake supports multiple model types, including Arctic models for more specific tasks such as AI functions, document processing, and embeddings.
Internal AI Productivity Gains
CoWork reduced keyword research in Snowflake's marketing organization from approximately 10 hours to 20 minutes and reduced content production from an estimated 24 hours to 2 hours, while eliminating $400 thousand in annual agency spend. Long-range planning in finance was reduced from a three-person team using more than 50 spreadsheets to one analyst and a series of models. In sales, over 125 contacts and leads were automated, with 70% of initial outreach emails for inbound leads generated automatically before SDR involvement.
Broad Internal Adoption of AI Tools
Snowflake said it has more than 150 key Snowflake-on-Snowflake use cases across the organization, including deal desk, tax and accounting, internal audit, FP&A, and treasury. Adoption within the finance organization was described as almost 100%.
Accelerated Product Innovation
Snowflake launched more than 33 product capabilities to general availability in the first half of the year, 35% more than in the first half of the prior year.
Strong Liquidity and Free Cash Flow Outlook
Snowflake ended the quarter with $4.3 billion in cash, cash equivalents, short-term investments, and long-term investments. The company reiterated its full-year non-GAAP adjusted free cash flow margin guidance of 23%.
Progress Toward GAAP Profitability
Management reiterated that Snowflake remains on track for GAAP profitability in Q4 fiscal 2028 and said it continues to build operating leverage toward that outcome.
Model Neutrality Supports Customer Flexibility
Management said customers value Snowflake's model neutrality because they can avoid being locked into a single model provider and can automatically route tasks to the appropriate model.
Regional Execution Remained Strong
Management stated that all regions, including Europe and Asia, were performing well and that the outlook for all regions was incorporated into fiscal 2027 guidance.
Application and Systems-of-Record Opportunity
Snowflake said its investments in hosting applications, hybrid tables, and Postgres position the platform for a new generation of agentic applications, including analytic and operational systems built on Snowflake.
MX:SNOW Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed