Snowflake stock surged after the software maker reported second quarter earnings and revenue that handily beat Wall Street targets. The company's October quarter product revenue guidance came in above expectations as customers modernize their company data for artificial intelligence projects.
The enterprise software maker released the Snowflake earnings report after the market close. On an adjusted basis, Snowflake earnings were 35 cents per share, nearly doubling from a year earlier. Analysts expected Snowflake to report adjusted profit of 27 cents per share.
Revenue climbed 32% to $1.1 billion, the enterprise software maker said, versus consensus estimates of $1.09 billion.
"The upbeat print reinforces the bull thesis around the technical moat of Snowflake's data platform — serving both structured and unstructured data — with new products becoming an increasingly material growth lever and driving healthy new customer acquisition," said William Blair analyst Jason Ader in a report.
Snowflake Stock: Strong Guidance
For the October quarter, Snowflake forecast product revenue in a range of $1.125 billion to $1.130 billion vs. consensus estimates of $1.12 billion.
At Citi, analyst Tyler Radke said in a report: "Snowflake exceeded high expectations delivering its strongest beat in years with reaccelerating product revenue growth to 32%. With two strong quarters, we see positive read-throughs across consumption patterns and believe the strength and migration activity suggests large enterprises' increasing budget allocation towards database modernization as part of artificial intelligence projects which likely supports further upside."
On the stock market today, Snowflake stock surged over 19% to near 239 in midday trading. Meanwhile, Snowflake stock had advanced 23% in 2025 heading into the Snowflake earnings report after tumbling 22% last year.
At Bank of America, analyst Brad Sills is upbeat on a key financial metric.
"Net revenue retention has finally found the bottom, reaccelerating to 125% from 124%, following 13 consecutive quarters of deceleration," Sills said in a report. "NRR strength was largely driven by solid expansion deals in the core analytics category. With customer wins driven by improved competitive positioning in adjacent categories, healthy ongoing expansion is likely to be an incremental growth driver going forward. All of this is to say that Q2 results validate our view that Snowflake is making the leap to becoming a true data platform in the large enterprise."
Snowflake Stock Technical Ratings
Further, Snowflake sells data analytics software that runs on cloud-computing platforms. Also, the company has evolved into a cloud data-management software provider. Privately held Databricks has been Snowflake's biggest rival.
Many companies are in trials with autonomous, goal-driven AI agents. Snowflake and Databricks are focused on helping companies use proprietary data to deploy their own AI agents.
According to IBD Stock Checkup, SNOW stock holds an IBD Composite Rating of 74 out of a best-possible 99. IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating.
In addition, SNOW stock has an Accumulation/Distribution Rating of C-minus. The rating, on an A+ to E scale, measures institutional buying and selling in a stock. A+ signifies heavy institutional buying; E means heavy selling.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
