Snowflake stock jumps as accelerating product revenue, AI adoption drive blowout quarter

Tech Software & Services Written by: Angela Harmantas 13:16 Thu 03 Sep 2026 --> Disclaimer No investment advice About this content Editorial Standards & Policies Share article About this content × About Angela Harmantas Angela Harmantas is an Editor at Proactive. She has over 15 years of experience covering the equity markets in North America, with a particular focus on junior resource stocks. Angela has reported from numerous countries around the world, including Canada, the US, Australia, Brazil, Ghana, and South Africa for leading trade publications. Previously, she worked in investor relations and led the foreign direct investment program in Canada for the Swedish government. She earned a Bachelor of... Read more About the publisher Proactive financial news and online broadcast teams provide fast, accessible, informative and actionable business and finance news content to a global investment audience. All our content is produced independently by our experienced and qualified teams of news journalists. Proactive news team spans the world’s key finance and investing hubs with bureaus and studios in London, New York, Toronto, Vancouver, Sydney and Perth. We are experts in medium and small-cap markets, we also keep our community up to date with blue-chip companies, commodities and broader investment stories. This is content that excites and engages motivated private investors. The team delivers news and unique insights across the market including but not confined to: biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto and emerging digital and EV technologies. Use of technology Proactive has always been a forward looking and enthusiastic technology adopter. Our human content creators are equipped with many decades of valuable expertise and experience. The team also has access to and use technologies to assist and enhance workflows. Proactive will on occasion use automation and software tools, including generative AI. Nevertheless, all content published by Proactive is edited and authored by humans, in line with best practice in regard to content production and search engine optimisation. Snowflake Inc ( NYSE:SNOW ) View Price & Profile Snowflake stock jumps as accelerating product revenue, AI adoption drive blowout quarter Published: 13:16 03 Sep 2026 EDT Snowflake Inc (NYSE:SNOW) shares jumped more than 20% on Thursday following a blowout second-quarter earnings report, driven by accelerating product revenue growth and surging enterprise adoption of its AI offerings. Bank of America raised its price objective on the stock to $470 from $395, citing accelerating product revenue growth and reiterating a Buy rating. Snowflake's product revenue growth accelerated to 37% year-over-year in the second quarter of fiscal 2027, up from 34% in the first quarter, according to BofA. The company's guidance for the third quarter calls for product revenue growth of 37-38%, implying further acceleration. BofA said newer customer cohorts are ramping toward purchased capacity faster than prior cohorts, with recent cohorts reaching 80% of purchased consumption materially sooner. The bank pointed to faster deployments, AI-enabled migrations, and growing adoption of Snowflake's CoCo and CoWork offerings as drivers of the stronger trends. Current remaining performance obligations grew 42% year-over-year, marking the fourth consecutive quarter of accelerating cRPO growth, BofA said. The company also added 48 net new customers with trailing 12-month spend surpassing $1 million. BofA said AI adoption is contributing meaningfully to the growth acceleration, though the company has not quantified the consumption uplift from AI adopters specifically. The bank said a key debate going forward is whether AI is driving higher customer lifetime value or simply pulling forward existing workloads. BofA's new price objective is based on 22.4 times enterprise value to estimated calendar year 2027 revenue, up from 19.4 times previously, a premium to infrastructure software peers that the bank said is warranted given Snowflake's accelerating growth, execution, and expanding AI-driven consumption. The new target implies 54% potential upside, according to the bank. Continue reading