Snowflake raises product revenue outlook after 35% quarterly growth, lifting shares in after-hours trading

Fiscal second-quarter results beat expectations

Snowflake reported fiscal second-quarter revenue of $1.55 billion, up 35.1% from the same quarter a year earlier and above the cited $1.48 billion analyst estimate. Adjusted earnings were 62 cents per share, compared with an anticipated 45 cents. The company’s net loss narrowed to $191.7 million, or 55 cents per share, from $297.9 million, or 89 cents per share, a year earlier.

The earnings report was followed by a 22% rise in after-hours trading Wednesday. The after-hours move was separate from Snowflake’s November 5 regular-session decline.

Product revenue outlook rises

Snowflake raised its fiscal-year product revenue forecast to $6.07 billion from $5.84 billion in May, an increase of $230 million. The updated forecast followed 35% year-over-year revenue growth in the fiscal second quarter.

Snowflake also increased its projected adjusted operating margin for the fiscal year to 14.5%, up from the previous forecast of 13.5%.

Cash-flow valuation remains contested

A separate valuation analysis put Snowflake’s latest twelve-month free cash flow at about $1.2 billion. Its model assumes that figure will continue growing over the coming decade and eventually exceed $4 billion annually, requiring the company to turn its data and AI workloads into larger recurring usage without letting costs run away.

The same analysis presented sharply different investor views. One bullish narrative described Snowflake as 32% undervalued if it converts rapid uptake of CoCo, CoWork and AI workloads into sustained higher-margin platform consumption while managing product gross-margin pressure and potential dilution from convertible notes. A bear narrative described the stock as 269% overvalued, citing Databricks' expansion into cloud warehousing and resulting competition. These were competing investor narratives, not company guidance.

Other developments

Snowflake’s CoCo AI coding agent reached a reported 9,100 accounts, an increase of 2,000 during the quarter. The figure confirms a reported account count for CoCo, but the reviewed material does not provide corresponding revenue, customer-spending data or a new procurement commitment.

Snowflake announced Business Ontology as part of Horizon Catalog, a data-discovery product; the reviewed material does not establish general availability, customer adoption, revenue impact or a new customer order.

Separately, Snowflake closed November 5 local-time trading down 6.72% at $271.08, a decline of $19.52 from the previous session. The report said regulatory disclosures showed an insider sold shares worth approximately $3.06 million.