Snowflake Reports on H2 of Fiscal 2027 with AI Push

Snowflake announce its financial results for the second half of Fiscal 2027, with another boost in revenue growth. 

Due to a raise in profits, the company is expanding its full-year growth guidance. 

Product growth for Snowflake was reflected in the results, as product revenue reached US$1.49bn, a 37-38% YoY growth. 

CFO Brian Robins notes: “Q2 marks our third consecutive quarter of product revenue growth acceleration, driven by strength in both our core data platform and a meaningful step-up in AI revenue.

“Importantly, we delivered this accelerating growth while expanding operating margin. Balancing growth with discipline remains a top priority, and we are raising our full-year product revenue growth guidance to 36% year-over-year.”

AI discipline for growth 

Snowflake is diverting its attention to the AI boom as it focuses on its AI strategy going forward. CoCo, the company’s AI coding agent, came close to passing a 10,000 milestone, as it currently sits at 9,100 accounts. 

This quarter alone saw an increase of 2,000 accounts. 

Sridhar Ramaswamy, CEO of Snowflake, notes: “Snowflake delivered another strong quarter, with product revenue of US$1.49bn, up 37% year-over-year, as Snowflake continues to power the enterprise AI revolution.”

In powering the AI revolution, Snowflake has also seen an in uptake in its global customer satisfaction. 1Password and Indeed were named as clients who chose Snowflake as the “foundation” for their data and AI transformation, says Snowflake. 

Additionally, 692 new customers joined Snowflake, marking a 34% YoY increase. Of the new customers, 14 are on the Forbes Global 2000 list. 

Sridhar continues: “AI continues to compound our advantages, creating a flywheel effect across the business. CoWork and CoCo are driving transformational outcomes for our customers, while fuelling rapid adoption, user growth, new workloads and overall platform consumption. 

“Our rapid pace of innovation, tight go-to-market execution, and operational discipline position us well to capture the opportunity ahead. The Agentic Enterprise runs on Snowflake, and we're just getting started.”

Additionally, Snowflake’s uptake in the release of its products has resulted in the increase in profits. Snowflake’s release of 330 products in H1, and this quarter built on that with its Cortex Sense and Cortex AI Gateway, which uses AI to action insights through an integration with Natoma. 

Snowflake partners: 

Salesforce: Salesforce Inc. is an American cloud-based software enterprise specialising in customer relationship management software and applications. It integrates directly with Snowflake to allow seamless, real-time data sharing across marketing and sales analytics. The company was co-founded in 1999 by CEO Marc Benioff. Salesforce maintains its global head office in California, US.

Microsoft: The business was founded in 1975 by Bill Gates and Paul Allen. Microsoft keeps its international headquarters located in Redmond, Washington. Satya Nadella serves as Chief Executive Officer, having held the position since February 2014. Microsoft Corporation is an American multinational technology enterprise that produces computer software, consumer electronics and cloud computing services.

dbt Labs: dbt Labs Inc. is an American technology firm that develops open-source data build tools to transform data directly inside modern cloud data warehouses. It functions as a key integration partner, enabling data engineers to orchestrate transformations efficiently on Snowflake platforms. The company was founded in 2016 by Tristan Handy, Drew Banin, and Connor McArthur. dbt Labs is headquartered in Pennsylvania. Tristan Handy continues to lead the company as its Chief Executive Officer.

Tableau Software: Tableau Software is an American interactive data visualization software company focused on business intelligence. Operating as a subsidiary of Salesforce, its software integrates natively with Snowflake, enabling business analysts to query live cloud data and render real-time analytics visualisations. The enterprise was founded in 2003 by Christian Chabot, Pat Hanrahan, and Chris Stolte. It maintains its global headquarters in Seattle, Washington. The organisation is currently managed by Chief Executive Officer Adam Selipsky.

Informatica: Informatica Inc. is an American software development firm that specialises in enterprise cloud data management, governance, and integration. Headquartered in California, the company was established in 1993 by Gaurav Dhillon and Diaz Nesamoney. Under the leadership of CEO Amit Walia, who directed its return to the public markets, Informatica delivers automated ETL pipelines and data transformation frameworks designed to stream raw transactional data into Snowflake repositories.