Snowflake beats Q2 as AI demand boosts full-year revenue outlook

Snowflake Inc. reported stronger-than-expected second quarter fiscal 2026 results on August 27, as the cloud data company cited robust AI-driven demand and raised its full-year revenue outlook, sending the stock sharply higher in after-hours and premarket trading. Company management said total revenue for the quarter was $1.14 billion, with product revenue of $1.09 billion, representing 32 percent year-over-year growth. Adjusted earnings per share were $0.35 versus the Street consensus of $0.27.

Management highlighted accelerating adoption of Snowflake’s AI capabilities as a central growth driver. Chief Executive Sridhar Ramaswamy said AI influenced nearly half of new customer wins in the quarter and that more than 6,100 accounts use Snowflake AI on a weekly basis. “AI is a core reason why customers are choosing Snowflake,” he said on the company’s earnings call, adding that AI is still in its early enterprise innings and that the company sees a long runway ahead for value creation.

Snowflake reported a GAAP net loss of $297.9 million, an improvement from a net loss of $317.7 million a year earlier, and non-GAAP operating income rose to $127.6 million. Net revenue retention held...