Snowflake spikes 22% on healthy results and AI coding momentum
Snowflake business is growing quickly, in part thanks to adoption of an artificial intelligence agent for writing code.
TL;DR
- Snowflake's stock rose 22% in extended trading following better-than-expected financial results and guidance.
- The company surpassed LSEG consensus estimates for both earnings per share (62 cents vs. 45 cents expected) and revenue ($1.55 billion vs. $1.48 billion expected).
- Revenue increased by 35% year over year in the fiscal second quarter.
- Snowflake's artificial intelligence coding agent, CoCo, saw an increase of over 2,000 accounts, reaching a total of 9,100.
- The company issued an upbeat revenue forecast for the fiscal third quarter ($1.59 billion) and raised its full-year product revenue projection to $6.07 billion.
- Snowflake also expects a wider adjusted operating margin of 14.5% for the fiscal year.