Snowflake stock jumped around 10% in after-hours trading Wednesday after the cloud data platform company reported better-than-expected second quarter results and raised its full-year product revenue guidance.
The company posted revenue of $1.14 billion for the quarter, surpassing the analyst consensus estimate of $1.09 billion and representing a 32% increase YoY. Product revenue, which forms the core of Snowflake’s business, came in at $1.09 billion, also up 32% from the same period last year and ahead of the $1.04 billion estimate.
Snowflake reported adjusted earnings per share of $0.38, significantly beating the analyst estimate of $0.27 and more than doubling from $0.18 in the year-ago quarter.
Following the strong results, the company raised its fiscal 2026 product revenue forecast to $4.40 billion from its previous guidance of $4.33 billion, exceeding the average analyst estimate of $4.34 billion. Snowflake also improved its adjusted operating margin outlook to 9% from 8% previously.
For the third quarter, Snowflake expects product revenue of $1.13 billion, slightly above the $1.12 billion analyst consensus.
The company’s net revenue retention rate stood at 125%, down slightly from 127% in the same quarter last year but ahead of the 124% estimate. Current remaining performance obligation, a measure of future contracted revenue, reached $6.9 billion, increasing 33% YoY and surpassing the $6.78 billion estimate.
Professional services and other revenue grew 38% YoY to $54.5 million, also exceeding analyst expectations of $46 million.
Source :
https://www.investing.com/news/stock-market-news/snowflake-stock-soars-aftermarket-after-topping-estimates-and-raising-guidance-4213303
