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Snowflake Reports Strong Q2 Revenue Growth and Expanding AI Portfolio
Snowflake (NYSE: SNOW) generated $1.09 billion in product revenue during its fiscal Q2 2026, a 32% increase from the previous year, surpassing management’s guidance of $1.04 billion. This growth is complemented by a record order backlog, as remaining performance obligations rose 33% year-over-year to $6.9 billion. However, the company reported a net loss of $298 million for the quarter, totaling $728 million for the first half of the fiscal year, raising concerns about its valuation, which stands at a price-to-sales ratio of 20.8, significantly higher than major cloud providers.
As part of its expanding portfolio, Snowflake launched Cortex AI in 2023, providing access to large language models like OpenAI’s GPT-5, and fostering AI development through tools for easier data gathering. By the end of the quarter, Snowflake had 12,062 customers, over 6,100 of whom were utilizing AI products weekly. This shift positions the company favorably within the AI market, though the high valuation could limit immediate stock upside.
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