Snowflake shares jump 17% on AI growth

Snowflake shares jumped 17% after the software provider reported fiscal second-quarter product revenue of $1.49 billion, an increase of 37% year over year. Total revenue advanced 35% to $1.55 billion. The performance marked the third straight quarter of accelerating growth in product revenue.

Adjusted earnings reached $0.62 per share, surpassing the consensus analyst estimate of $0.45 per share. CEO Sridhar Ramaswamy stated that artificial intelligence accounted for about half of the recent growth acceleration. Ramaswamy also noted that the CoCo coding assistant has gathered more than 9,100 accounts.

Customer metrics strengthened across the business, reaching a net revenue retention rate of 126% and $9 billion in remaining performance obligations. Clients spending over $1 million annually expanded to 828. Following the report on 8 September 2026, Snowflake raised its full-year product revenue outlook to $6.07 billion from $5.84 billion, representing about 36% annual growth.

The stock trades at roughly 152 times consensus adjusted earnings estimates for fiscal 2027. Based on consensus fiscal 2030 projections of $5.86 per share, the multiple stands near 58 times earnings.