Snowflake Raises Revenue Forecast After Surge in Demand for AI Coding Agent

Snowflake released its second-quarter fiscal 2027 results on September 2, showing an acceleration driven by sales of its AI-powered tools. Shares jumped more than 20 percent in after-hours trading as management raised its full-year product revenue forecast above analyst expectations.

Quarterly Results

The second quarter of fiscal 2027 was Snowflake's strongest in some time. Product revenue, the company's main source of income from usage of its data platform, grew 37 percent year over year to $1.49 billion. Total revenue, which also includes professional services, reached $1.55 billion, well above the analyst consensus of $1.48 billion.

Adjusted earnings per share came in at 62 cents, comfortably beating the market consensus of 45 cents. Net revenue retention reached 126 percent, meaning existing customers are spending increasingly more on the platform. The number of customers generating more than $1 million in trailing twelve-month product revenue rose 27 percent year over year, to 828.

CoCo Drives Growth

A key part of the results presentation was the CoCo coding agent, part of the Cortex family of tools. The number of accounts using CoCo grew by more than 2,000 during the quarter, to 9,100. Management said rising use of the AI assistant translates directly into higher consumption of the platform's computing power, and therefore higher revenue, since Snowflake's business model is based on billing for actual resource usage rather than fixed licenses.

AI is amplifying Snowflake's data advantage, and Cortex Code and Snowflake Intelligence are seeing the fastest adoption of any new products in the company's history - Sridhar Ramaswamy, CEO of Snowflake

Other metrics disclosed by the company included remaining performance obligations of $9 billion, up 30 percent year over year, and 829 customers from the Forbes Global 2000 list. Shares hit a new 52-week high of $334.70.

Raised Forecast

Management raised its full fiscal year 2027 product revenue forecast to $6.07 billion, up from the $5.84 billion announced in May and well above the analyst consensus of roughly $5.86 billion. For the third quarter, the company guided to $1.59 billion in product revenue, also above the consensus of $1.50 billion.

In conversations with investors, Ramaswamy stressed that a billing model based on actual resource consumption, rather than seat counts or licenses, fits better with the AI agent era, in which employee productivity is rising while traditional per-seat software pricing models lose their rationale.

What It Means for the Market

Snowflake's results fit into a broader trend among cloud infrastructure and data providers, where investors are watching closely whether AI tools actually translate into higher platform consumption rather than just deployment announcements. The more than 20 percent jump in the stock shows the market found the evidence in the quarterly numbers convincing.

For companies using data platforms, including those in Poland, Snowflake's results signal that coding agents and AI assistants integrated directly into the data layer are starting to meaningfully increase enterprise customers' spending on cloud infrastructure, rather than remaining a marketing add-on to existing products.

The next test for the company will come with its third-quarter results, when investors will check whether the pace of growth in Cortex Code accounts holds up, and whether the raised annual forecast proves realistic rather than the result of a one-time spike in demand.