Snowflake reported revenue of $1.55 billion for its fiscal 2027 second quarter, a 35 percent increase from the same period last year, as demand for the company's AI agents accelerated customer adoption. The AI data cloud company announced the results Wednesday, highlighting that its CoCo and CoWork AI products are becoming central to enterprise customers' operations. The company also lifted its full-year revenue forecast and saw its stock price surge more than 23 percent in after-hours trading.
Product revenue climbed 37 percent year over year to $1.49 billion during the quarter that ended July 31, according to Snowflake's financial report. The company's customer base expanded to 14,554 accounts, a 32 percent gain from a year earlier, with 692 new customers added in the second quarter alone. Among those clients, 828 now generate more than $1 million in trailing 12-month product revenue, while 65 produce over $10 million. The number of individual customer projects deployed on Snowflake's platform jumped 89 percent year over year. Snowflake CoCo now serves more than 9,100 customers—adding over 2,000 net-new accounts during the quarter—while CoWork is active in 5,800 customer accounts. The company posted a net loss of $191.7 million, narrower than the $297.9 million loss reported one year earlier.
CEO Sridhar Ramaswamy told analysts during Wednesday's earnings call that "the agentic enterprise runs on Snowflake," noting that organizations must become agentic quickly and cost-efficiently to stay competitive. CFO Brian Robins said the quarter marked "the third straight quarter of acceleration," driven by strength in the core data platform business and a meaningful jump in AI revenue from the company's expanding portfolio of AI capabilities. Ramaswamy explained that growth stems from three reinforcing dynamics: customer AI initiatives creating new workloads for the platform, sales of AI-specific products like CoCo and CoWork, and AI activation that lifts overall platform consumption. He added that customers using AI on Snowflake consume more across the data platform, creating what he called a "structural multiplier" for the business.
The company's AI momentum reflects how customer demand for coding and work agents is reshaping enterprise data consumption patterns. Snowflake itself is deploying CoCo and CoWork across nearly every internal function and business process, using that experience to advise clients on becoming AI-native, according to Products EVP Christian Kleinerman. Customers including BlackRock, 1Password, and Indeed are now running more mission-critical work on the platform and tapping into the broader product portfolio, Ramaswamy said. Risk intelligence provider Sayari recently announced plans to migrate and rebuild its commercial world model on Snowflake, consolidating 12 billion primary-source records from 715 sources and using CoCo to speed data migration.
For the current fiscal third quarter, Snowflake expects product revenue between $1,588 million and $1,593 million, representing 37 to 38 percent year-over-year growth. The company raised its full-year fiscal 2027 product revenue guidance to $6,070 million—a 36 percent year-over-year increase—up from earlier expectations of $5,840 million or 30 percent growth. Snowflake projects its total addressable market will more than double from $225 billion in fiscal 2026 to $460 billion in fiscal 2031, with AI serving as the primary catalyst. CEO Ramaswamy said the company is on track for GAAP profitability in the fourth quarter of fiscal 2028. The momentum in AI agent adoption signals that enterprises are moving beyond experimental use cases into production deployments, while the consumption multiplier effect suggests that AI workloads may fundamentally alter how cloud data platforms monetize their customer relationships.