Snowflake shares surge 16% as AI agents drive earnings beat

US cloud data company Snowflake is accelerating its growth on the back of AI, posting better-than-expected second-quarter earnings and raising its full-year outlook — sending shares surging more than 16% in a single session.

Snowflake said Wednesday (local time) that revenue for the second quarter of fiscal year 2027 rose 35.1% year-on-year to $1.55 billion.

Earnings per share came in at $0.62, up 77.1% from a year earlier and well above the market consensus of $0.45.

Product revenue reached $1.49 billion, a 36.8% year-on-year increase and the third consecutive quarter of accelerating growth. Remaining performance obligations for the quarter surpassed $9 billion.

Customer metrics also continued to expand. Net new customers totaled 692, a 32% increase from a year earlier, bringing the total customer count to 14,554. Some 828 customers generated more than $1 million in product revenue over the trailing 12 months.

Two new AI agent services launched this year — CoCo and CoWork — drove the revenue acceleration in the quarter. CoCo, an AI coding agent, added more than 2,000 accounts during the quarter alone, pushing its cumulative total past 9,100. CoWork, a personal productivity agent, reached 5,800 accounts, up 11% quarter-on-quarter.

"The results show a clear earnings improvement, confirming AI momentum and the core growth it is driving," said Lee Young-jin, an analyst at Samsung Securities. "It is particularly encouraging that half of the acceleration in product revenue growth came from AI products."

The market took note of the fact that CoCo and CoWork are lifting not only new revenue streams but also usage of Snowflake's existing services. Customers who adopted AI products are also increasing their consumption of the company's core data services.

"Customers who have adopted AI-based products are simultaneously increasing their usage of the company's core data query and analytics services, creating a structural multiplier effect on overall earnings," said Ko Min-seong, an analyst at NH Investment & Securities.

Unlike the subscription model typical of software-as-a-service companies, Snowflake charges customers based on actual usage. As AI adoption drives higher data processing volumes, Snowflake's revenue grows in tandem. In fiscal year 2026, product revenue accounted for 95.5% of total revenue, with services making up the remaining 4.5%.

Snowflake also raised its guidance for the next quarter and the full year. It projected third-quarter product revenue of $1.59 billion, topping the market estimate of $1.5 billion. The full-year product revenue outlook was lifted to $6.07 billion from the $5.84 billion forecast issued in May.

The company said its recent growth is not confined to AI-native firms but is spreading across a broad customer base. It particularly noted that the usage increase driven by AI adoption is accompanied by stronger cost management and optimization tools — not irrational spending growth.

The strong results sent shares sharply higher. In after-hours trading immediately following the earnings release, Snowflake's share price jumped more than 22%. In the regular session Thursday (local time), the stock closed at $356.47, up 16.55% from the previous session. Over the past month, shares have gained 12.53%, and over the past six months, they have surged 111.86%.

"As corporate AI adoption and AI agent utilization gain full momentum, the value of data platforms will become even more prominent," said Kim Jae-im, an analyst at Hana Securities. "The simultaneous acceleration of AI revenue and core platform usage further raises the investment appeal of the stock."