Snowflake Inc (NYSE: SNOW) shares surged 23.14% in after-hours trading to $376.60 after the AI data cloud company reported a second-quarter fiscal 2027 revenue beat and raised its full-year outlook.

The strong results triggered immediate praise from market commentators. Jim Cramer posted on X, calling Snowflake "a thing of beauty." Altimeter Capital founder Brad Gerstner highlighted the company's transformation, noting that when the stock last traded around $375 in 2021, revenue was about $1 billion. Today, with accelerating 37% revenue growth and expanding operating margins driven by AI use cases like CoCo and CoWork, the revenue base has grown to approximately $6 billion annually.

Analyst Expectations and Ratings

Prior to the report, analysts had projected record quarterly revenue, expecting it to surpass the first-quarter figure of $1.39 billion. Earnings per share were previously projected at 45 cents, up from 35 cents a year ago.

Rosenblatt analyst Blair Abernethy maintained a Buy rating and raised the price target from $285 to $345, citing healthy consumption growth and enterprise cloud migration tailwinds.

Recent actions from Benzinga’s most-accurate analysts include:

What the Numbers Show

A key divergence to watch is whether net revenue retention can hold near Q1’s 126% level. Snowflake reported a net revenue retention rate of 126% for Q2, signaling that AI adoption is translating into actual customer spending rather than just initial trials. Continued momentum in Cortex Code and Snowflake Intelligence remains in focus, given both have become key growth drivers.

CEO Sridhar Ramaswamy stated, “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.”

The acceleration is driven by a broadening portfolio of AI capabilities. Snowflake added 692 net new customers in Q2, including 14 from the Global 2000, bringing the total customer base to 14,554. The company now has 828 customers with trailing 12-month product revenue greater than $1 million, up 27% year-over-year. Notably, 65 customers have crossed the $10 million threshold in trailing twelve-month product revenue.

Remaining performance obligations (RPO) totaled $9 billion, up 30% year-over-year. While this is a slight decrease from the $9.21 billion reported last quarter (which had grown 38% YoY), the absolute growth indicates strong future revenue visibility. Management expects approximately 54% of this RPO to be recognized as revenue in the next 12 months.

Forward Guidance and Balance Sheet

Snowflake sees third-quarter product revenue in the range of $1.588 billion to $1.593 billion, representing approximately 37.5% year-over-year growth. The company noted that it expects an adjusted operating margin of 15.5% in the third quarter.

For the full fiscal year 2027, Snowflake raised its product revenue guidance to $6.07 billion, representing 36% year-over-year growth. This includes approximately 1 percentage point of growth from the Observe acquisition. The company also increased its FY27 non-GAAP operating margin guidance from 13.5% to 14.5% and expects a non-GAAP product gross margin of 74%.

On the balance sheet, Snowflake ended the quarter with approximately $4.3 billion in cash, cash equivalents, short-term, and long-term investments. This liquidity position supports continued investment in AI capabilities and potential strategic initiatives. The company remains on track for GAAP profitability in Q4 fiscal 28.

Technical Setup: Cooling Pace Within Bullish Structure

From a trend perspective, Snowflake is still in a bullish structure: it trades above its 50-day SMA ($291.00), 100-day SMA ($236.35), and 200-day SMA ($217.78). However, pre-earnings, the stock was 4.8% below its 20-day SMA ($326.54), indicating the near-term pace had cooled even though the bigger uptrend remained intact.

RSI sat at 54.64, pointing to neutral momentum rather than an overbought or oversold extreme. The moving-average backdrop still favors bulls, with the 20-day SMA above the 50-day SMA and the golden cross that occurred in July keeping the longer-term trend bias positive.

• Key Resistance: $342.00 — aligns with the 52-week high area ($341.95)
• Key Support: $253.50 — a prior buyer-defense area above the 200-day SMA ($217.78)

Stock Performance

Snowflake shares closed at $305.84 on Wednesday before surging in after-hours trading. Previously, the stock declined 3.5% to close at $319.80 on Tuesday. It trades within a 52-week range of $118.30 to $341.95. The stock is up 90% over the last six months and roughly 48% year-to-date in 2026, approaching its all-time high of $401.89 set in November 2021.

Snowflake CEO stated the company remains on track to achieve GAAP profitability in the fourth quarter of fiscal 2028. The guidance was provided during a conference call.

Guidance Update

The leadership team communicated its financial trajectory during the earnings discussion. The focus remains on reaching a specific profitability milestone within the defined fiscal timeline.

• Target period: Q4 FY28
• Metric: GAAP profitability

No additional financial metrics or operational data were disclosed in the brief update.