Snowflake delivered a strong fiscal second quarter with product revenue of $1.09 billion, up 32% year-over-year, and raised its full-year revenue guidance to approximately $4.40 billion, reflecting ongoing confidence in growth.

The company expects continued momentum with guidance for Q3 revenue at $1.13 billion, driven by expanding AI product offerings and increased sales capacity.

Following these results, Snowflake's stock surged 14% in premarket trading, fueled by rising demand for AI software and enterprise data solutions.

AI integration remains a major growth driver, influencing nearly half of new customer acquisitions and powering 25% of deployed use cases, with over 6,100 customer accounts using Snowflake's AI weekly.

The company's growth is bolstered by increased customer adoption of AI features and expanded partnerships with major cloud providers, notably Microsoft Azure, which is now its fastest-growing cloud environment with 40% year-over-year growth.

Snowflake's strategic focus on AI and data modernization is evident, with nearly 50% of new customer logos influenced by AI capabilities and a customer base that includes 533 net new clients in the quarter, including 15 Global 2000 accounts.

Product innovation continues at a rapid pace, with over 250 new capabilities launched in the first half of fiscal 2026, including Snowflake Intelligence, Cortex AI SQL, and Snowflake Postgres, expanding its ecosystem and market reach.

The company has also expanded its partner ecosystem to over 12,000 global partners, supporting its international growth and integration efforts.

Management emphasizes that data modernization efforts are foundational for enabling AI-ready data and applications, which will sustain long-term growth beyond legacy system migrations.

Future growth is expected to be driven by ongoing AI product expansion, large-scale enterprise migrations, and increased sales productivity, with international expansion and cloud alliances playing critical roles.

Financial metrics remain strong, with billings reaching $1.10 billion—up 41.4% year-over-year—and a remaining performance obligation of $6.9 billion, up 33%, indicating robust future revenue potential.

Snowflake reported a non-GAAP operating margin of -29.7%, with adjusted earnings per share of 35 cents surpassing forecasts, and narrowed its net loss to $298 million, demonstrating improving profitability.