Snowflake raises FY27 guidance as AI products accelerate growth

Transcript intelligence

What changed

Snowflake moved from the prior quarter's 34% product-revenue growth and $5.84 billion FY27 product-revenue guidance to 37% growth and $6.07 billion guidance. Management also raised the full-year operating margin outlook from 13.5% to 14.5%; the current analysis highlights Cortex Code and CoWork, the Observe acquisition, and additional product capabilities as the next execution focus.

Guidance delta

Management raised FY27 product revenue guidance to $6.07 billion and full-year operating margin guidance to 14.5%; GAAP profitability is targeted for Q4 FY28.

Key takeaways

• Product revenue grew 37% year over year, the third consecutive quarter of accelerating growth.
• Cortex Code and CoWork were identified as contributing roughly half of Q2 revenue acceleration.
• Net revenue retention was 126%, and Snowflake added 692 net new customers, including 14 Global 2000 accounts.

Management priorities

• Scale Cortex Code, CoWork, Cortex AI Gateway, Cortex Sense, and the Arctic model family.
• Launch more than 33 product capabilities in H1 FY27 and deepen AI integration across sales and engineering.
• Expand data-sharing and zero-copy partnerships to support ecosystem adoption.