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Snowflake Shares Jump After Strong Q2 as AI Demand Lifts Guidance

Management lifted its full-year product revenue outlook after reporting accelerating adoption of Snowflake AI across the customer base.

Overview

  • Quarterly revenue reached $1.145 billion with product revenue at $1.09 billion, up 32% year over year, as net revenue retention ticked up to 125%.
  • Snowflake ended the quarter with 12,062 customers and a record 50 new million‑dollar accounts, bringing the total to 654, while remaining performance obligations rose to $6.9 billion.
  • The stock climbed about 18% to 20% following the report, trading near $240 to $241 on Thursday.
  • More than 6,100 accounts use Snowflake AI weekly, with AI driving roughly 50% of new customer acquisitions and powering about 25% of deployed use cases.
  • GAAP losses continued even as non‑GAAP results improved to $129 million in net income with an 11% operating margin, and Bank of America raised its price target to $280 with a buy rating.