Snowflake Stock Soars as Surging AI Demand Boosts Earnings

Snowflake shares were up close to 40% for the year through Wednesday’s close. INA FASSBENDER / AFP / Getty Images Close Key Takeaways Snowflake shares jumped after the company reported better-than-expected earnings on strong AI demand. The AI data cloud company also raised its full-year outlook. Get personalized, AI-powered answers built on 27+ years of trusted expertise. Ask anything to get started... ASK Snowflake stock is surging on signs that enterprise AI demand is driving big gains for its business. Shares of Snowflake ( SNOW ) were up more than 20% in extended trading Wednesday after the AI data cloud company posted quarterly results that topped analysts’ estimates and raised its outlook. The company reported adjusted earnings per share of $0.62 for its fiscal 2027 second quarter, on a 35% year-over-year rise in revenue to $1.55 billion. Those numbers were well above the adjusted EPS of $0.45 on revenue of $1.48 billion that analysts surveyed by Visible Alpha expected. CFO Brian Robins said in a release that Snowflake saw a “meaningful step-up in AI revenue.” The company said it netted 692 new clients in the quarter, including 14 Forbes Global 2000 businesses. “AI continues to compound our advantages, creating a flywheel effect across the business,” CEO Sridhar Ramaswamy said. Snowflake projected current-quarter product revenue of between $1.588 billion and $1.593 billion, which would represent up to 38% growth. It lifted its full-year product revenue forecast to $6.07 billion from $5.84 billion previously. Snowflake shares were up nearly 40% for the year through Wednesday’s close. CORRECTION: An earlier version of this article incorrectly stated that the big gains in after-hours trading put Snowflake stock on track to hit a record high. Do you have a news tip for Investopedia reporters? Please email us at [email protected] Article Sources Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy. Snowflake. “ Snowflake Reports Financial Results for the Second Quarter of Fiscal 2027 .” Take the Next Step to Invest Advertiser Disclosure × The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace. Get personalized, AI-powered answers built on 27+ years of trusted expertise. ASK Read more News Company News Tech Sector News Partner Links Take the Next Step to Invest Advertiser Disclosure × The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace.