Snowflake's Product Revenue Accelerates: Can It Outpace DELL & ORCL?

Snowflake (SNOW) stock has risen 53% in the past year, with accelerating revenue growth. The company reduced its fiscal 2027 gross margin guidance to 74% due to lower-margin AI workloads. AI products, like Cortex Code and CoWork, contribute to revenue growth but at lower margins. Management expects AI-related costs to be offset by reduced operating expenses, maintaining non-GAAP operating margin guidance at 14.5%. Investors should monitor gross margin trends and GAAP profitability targets.

Snowflake Inc. (SNOW) reported Q2 2027 earnings with revenue up 35% to $1.55B, beating estimates. Adjusted EPS was $0.62 vs. $0.45 expected. Eight firms raised price targets, citing AI-driven growth and margin expansion. Shares surged over 20% post-earnings. SNOW trades at 166.67x forward earnings, with a GAAP operating loss of $263M.

Snowflake (SNOW) has surged 51% year-to-date, trading at 21x sales and 167x forward earnings. The company reported $1.49B in product revenue, up 37% YoY, with raised guidance. Analysts have an average price target of $425.19, but caution on valuation and potential risks.

Snowflake Inc. reports AI adoption is driving growth, with 9,100 accounts using CoCo and 5,000 using CoWork. CFO Brian Robins attributes recent outperformance to AI products, which now account for about half of it. The company raised its full-year growth guidance to 36% from 31%. Snowflake aims for GAAP profitability in Q4 2027, targeting this through operating leverage and productivity gains, not by cutting investments. The company has added 330 employees year to date, down from 940 in the prio

Snowflake Inc. (SNOW) reported a 37% increase in Q2 product revenue to $1.49B, raising its fiscal 2027 target to $6.07B. AI products drove half of the growth, boosting enterprise software stocks including Salesforce Inc. (CRM), which also reported strong Q2 results and a partnership with Anthropic. Both companies' stocks rose 3-6%.

Snowflake (SNOW) reported Q2 fiscal 2027 results with product revenue of $1.49B, up 37% YoY, and total revenue of $1.55B, up 35% YoY. Growth accelerated due to AI-driven demand, with net revenue retention at 126%. The company raised full-year product revenue guidance to $6.07B and adjusted operating margin guidance to 14.5%. AI workloads, while driving growth, have lower margins, with non-GAAP product gross margin at 74.7%.