Snowflake Inc. (SNOW) shares rose 16% on Thursday following the company’s impressive Q2 earnings report, which significantly surpassed expectations and resulted in an increased full-year revenue outlook. The company reported an adjusted EPS of $0.62, exceeding forecasts of $0.45, and a revenue of $1.54 billion, surpassing estimates of $1.47 billion—a 35% year-over-year increase.
Key figures include a 37% growth in product revenue to $1.49 billion and a remaining performance obligation (RPO) of $9 billion, a 30% increase from the previous year. The number of customers generating over $1 million in product revenue rose by 27% to 828. Snowflake has raised its full-year product revenue guidance to $6.07 billion, reflecting a 36% growth rate.
The company attributed its growth to accelerating AI adoption, with AI products contributing to about half of the recent growth. Snowflake added 692 new customers during the quarter, further solidifying its market position as demand for its AI and data services continues to rise.
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