Snowflake signals FY 2027 product revenue of $6.07B with 14.5% non-GAAP operating margin guidance, driven by AI mix (NYSE:SNOW)
Snowflake increased its fiscal 2027 product revenue forecast to $6.07 billion from $5.84 billion after second-quarter product revenue rose 37% year over year to $1.49 billion. Total revenue for the quarter reached $1.55 billion, a 35% increase. CEO Sridhar Ramaswamy attributed this momentum to AI offerings, which management stated contributed roughly half of the growth acceleration. The company expects a 14.5% non-GAAP operating margin for the full year, supported by increased platform consumption and the adoption of AI Assistant.
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- ✓ Snowflake raised its fiscal 2027 product revenue forecast to $6.07 billion from $5.84 billion.
- ✓ Second-quarter product revenue increased 37% year over year to $1.49 billion.
- ✓ Total revenue for the second quarter grew 35% to $1.55 billion.
- ✓ The company projected a 14.5% non-GAAP operating margin for the fiscal year.
What changed
New data reveals the previous product revenue guidance was $5.84 billion and that AI offerings drove approximately half of the recent growth acceleration.
Live updates
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Snowflake Raises FY 2027 Revenue Guidance Following Q2 AI Growth
Snowflake increased its fiscal 2027 product revenue forecast to $6.07 billion from $5.84 billion after second-quarter product revenue rose 37% year over year to $1.49 billion. Total revenue for the quarter reached $1.55 billion, a 35% increase. CEO Sridhar Ramaswamy attributed this momentum to AI offerings, which management stated contributed roughly half of the growth acceleration. The company expects a 14.5% non-GAAP operating margin for the full year, supported by increased platform consumption and the adoption of AI Assistant.
Why it matters
This performance marks the third consecutive quarter of growth acceleration for the company. The shift suggests that enterprise AI adoption is expanding Snowflake's data platform opportunity rather than disrupting it. Investors responded with a share price surge of nearly 25% on September 3.
What is confirmed
- Snowflake raised its fiscal 2027 product revenue forecast to $6.07 billion from $5.84 billion.
- Second-quarter product revenue increased 37% year over year to $1.49 billion.
- Total revenue for the second quarter grew 35% to $1.55 billion.
- The company projected a 14.5% non-GAAP operating margin for the fiscal year.
- Management stated AI offerings accounted for about half of the growth acceleration.
- The second quarter of fiscal 2027 ended on July 31, 2026.
Still unconfirmed
- Snowflake shares traded up by 21.8 percent due to optimism regarding cloud data partnerships and demand.
What to watch next
- Quarterly reports on the adoption rates of CoWork and CoCo tools
- Updates on the 14.5% non-GAAP operating margin target
- Further evidence of AI-driven product revenue acceleration in Q3 2027
confidence 95%Sources used for this update (6)
- finance.yahoo.com — Snowflake Q2 Earnings Beat on Product Revenues and AI Strength
- www.timothysykes.com — SNOW Stock Soars As AI Earnings Beat Fuels Re‑Rating
- finance.yahoo.com — Snowflake (SNOW)’s AI Push Strengthens its Growth Outlook
- finance.yahoo.com — Snowflake (SNOW)’s AI Flywheel Transitions into a Growth Engine
- finance.yahoo.com — Snowflake Expands in Cloud Analytics: Can It Challenge DELL & ORCL?
- www.storagenewsletter.com — Snowflake: Fiscal 2Q27 Financial Results
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Snowflake Raises FY 2027 Outlook Following Q2 Revenue Beat
Snowflake shares surged after the company reported second-quarter fiscal 2027 revenue of $1.55 billion, a 35% year-over-year increase. The company raised its full-year product revenue guidance to $6.07 billion and projected a 14.5% non-GAAP operating margin. This growth is attributed to an AI mix and increased uptake of its AI Assistant. The company also reported that its losses narrowed during the quarter, while product revenue specifically grew 37% to $1.49 billion.
Why it matters
The company operates a cloud-based data platform. This financial rebound follows a period of software sector volatility where Snowflake shares had previously dropped 4% prior to the report.
What is confirmed
- Second-quarter fiscal 2027 revenue rose 35% to $1.55 billion.
- Product revenue for the second quarter increased 37% to $1.49 billion.
- Snowflake signaled fiscal 2027 product revenue of $6.07 billion.
- The company provided non-GAAP operating margin guidance of 14.5%.
- Snowflake shares rose following the Q2 beat and raised guidance.
Still unconfirmed
- Strong AI-driven cloud partnerships boosted investor optimism.
- Snowflake stock traded up by 16.66 percent.
What to watch next
- Quarterly adoption rates of the AI Assistant
- Actual fiscal 2027 product revenue realization
- Changes in non-GAAP operating margins in Q3
confidence 95%Sources used for this update (8)
- Yahoo Finance — Snowflake Drops 4% Before Its Earnings Report, Datadog Falls 6%: Is the Software Selloff the Real Story?
- Bloomberg.com — Snowflake Jumps on Revenue Outlook, Uptake of AI Assistant
- Seeking Alpha — Snowflake signals FY 2027 product revenue of $6.07B with 14.5% non-GAAP operating margin guidance, driven by AI mix (NYSE:SNOW)
- WSJ — Snowflake Loss Narrows, Stock Jumps Afterhours
- Proactive financial news — Snowflake shares surge after Q2 beat, raised guidance
- pulse2.com — Snowflake: Q2 Fiscal 2027 Revenue Rises 35% To $1.55 Billion As Product Revenue Guidance Is Raised
- finance.yahoo.com — Snowflake Raises Full-Year Product Revenue Outlook Following Fiscal Second-Quarter Beat
- www.timothysykes.com — Snowflake Stock Soars As AI-Fueled Earnings Smash Expectations
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