- Snowflake reported Q2 revenue of $1.55 billion, up 35% year over year, while product revenue rose 37% for a third consecutive quarter of acceleration.
- Management raised FY27 product revenue guidance to $6.07 billion from $5.84 billion and increased non-GAAP operating margin guidance to 14.5% from 13.5%.
- FY27 product gross margin guidance fell to 74% from 75% because AI products carry lower margins than Snowflake's core platform, creating a key test for AI-driven consumption growth.
Quotes
“AI continues to compound our advantages, creating a flywheel effect across the business.”
“You're absolutely right. Our AI products have a lower gross margin than our core platform.”
“We are creating the controls that one needs in order to keep cost manageable as things continue expanding.”