Key Takeaways for Snowflake Stock as of September 2026
- Growth Inflection: Product revenue accelerated to 37% YoY, the third straight quarter of acceleration.
- Guidance Raise: Snowflake lifted its FY27 product revenue guide to $6.07B, ~36% YoY growth, and guided Q3 revenue to $1.588B-$1.593B, implying 37% to 38% YoY growth.
- Margin Expansion: Adjusted EPS of $0.62 beat estimates by 38.71% and climbed 77.14% YoY, while non-GAAP operating margin expanded more than 400 basis points to 15%.
- CEO On the Flywheel: CEO Sridhar Ramaswamy said Snowflake added seven points of growth acceleration in two quarters, tying the quarter’s 37% growth print to compounding AI adoption across CoCo and CoWork.
Snowflake Stock Surges as Q2 Growth Accelerates and Margins Expand Together
Snowflake stock (SNOW) jumped 23% after the company’s second-quarter fiscal 2027 report showed revenue of $1,546.79 million, up 35.09% year over year and 4.43% above the Street’s $1,481.23 million estimate. Product revenue, the recurring metric management leans on most, hit $1.49 billion and grew 37% year over year, the third straight quarter that growth has accelerated.
That acceleration is not incidental. Snowflake exited fiscal 2026 at 30% product revenue growth, and CEO Sridhar Ramaswamy laid out the math directly on the Q2 earnings call: “Product revenue came in at $1.49 billion with growth accelerating to 37% year-over-year, marking our second consecutive quarter of record sequential dollar growth. After exiting Q4 of last fiscal year at 30% year-over-year growth, we have now added 7 points of acceleration in just 2 quarters.” Seven points of acceleration in two quarters is the kind of move that forces a market to reprice a stock, and Snowflake stock’s reaction reflects exactly that repricing.
Profitability caught up to growth just as fast. EBIT reached $236.99 million, beating estimates by 27.45% and pushing the margin to 15.32%, up 418 basis points from a year ago. Adjusted EPS landed at $0.62, topping the $0.45 estimate by 38.71% and climbing 77.14% year over year. Non-GAAP operating margin expanded more than 400 basis points to 15%, and management raised the full-year operating margin guide from 13.5% to 14.5%.
Customer metrics back the growth story with specifics. Snowflake added 692 net new customers in the quarter, a 32% jump from a year earlier, while 65 customers now spend more than $10 million in trailing twelve-month product revenue. Net revenue retention held at 126%, and remaining performance obligations grew 30% year over year to $9 billion.
The newer AI products are doing real work inside that number. CoCo, Snowflake’s AI coding and automation tool, surpassed 9,100 accounts after adding more than 2,000 net new accounts in the quarter, while CoWork grew to 5,800 accounts. Management said AI products drove roughly half of the quarter’s acceleration, with core platform migrations and consumption growth supplying the rest. That balance, half AI and half core, is what let Snowflake raise its fiscal 2027 product revenue guide to $6.07 billion, 36% year over year growth, and guide third-quarter product revenue to $1.588 billion to $1.593 billion.
TIKR Values Snowflake Stock at $776, Pricing In Sustained AI-Driven Growth
TIKR’s mid-case model values Snowflake stock at $776 by January 2031, implying a 154% total return from the current price of $306, or 24% annualized over the next 4.4 years.
A mid-24% annualized return puts Snowflake stock among the more demanding growth bets in enterprise software, pricing in multiple more years of accelerating, not just steady, expansion.
That bar looks reachable given the quarter Snowflake just delivered: product revenue accelerating to 37% year over year, a raised fiscal 2027 guide to $6.07 billion, and operating margin expansion of more than 400 basis points even as AI products scale. The model is effectively betting that the flywheel management described, AI adoption pulling more core consumption behind it, keeps compounding through the same trajectory the last two quarters have shown.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
