Snowflake reported second-quarter fiscal 2027 revenue of $1.55 billion, increasing 35% year over year, while product revenue increased 37% to $1.49 billion.
Remaining performance obligations increased 30% to $9 billion, while net revenue retention was 126%.
Snowflake ended the quarter with 828 customers generating more than $1 million in trailing 12-month product revenue, up 27%, and 829 Forbes Global 2000 customers.
GAAP product gross margin was 70.9%, while non-GAAP product gross margin reached 74.7%.
The company reported a GAAP operating loss of $263 million and non-GAAP operating income of $237 million, representing a 15.3% margin. Adjusted free cash flow totaled $92.3 million.
Snowflake added 692 net new customers during the quarter, an increase of 32% year over year. Its CoCo AI offering surpassed 9,100 accounts, adding more than 2,000 during the quarter, while CoWork expanded to 5,800 accounts.
Snowflake also launched more than 330 product capabilities into general availability during the first half, up 35% year over year.
For the third quarter, Snowflake expects product revenue of $1.588 billion to $1.593 billion, representing growth of 37% to 38%.
The company raised its full-year fiscal 2027 product revenue outlook to $6.07 billion, representing 36% growth, from its previous $5.84 billion forecast. Snowflake also raised its expected non-GAAP operating margin to 14.5% from 13.5%.
KEY QUOTES:
“Snowflake delivered another strong quarter, with product revenue of $1.49 billion, up 37% year-over-year, as Snowflake continues to power the enterprise AI revolution. AI continues to compound our advantages, creating a flywheel effect across the business. CoWork and CoCo are driving transformational outcomes for our customers, while fueling 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.”
Sridhar Ramaswamy, CEO of Snowflake
“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.”
Brian Robins, CFO of Snowflake
