Snowflake Lifts FY2027 Product Revenue View to $6.07B

Snowflake raised its fiscal 2027 product revenue forecast to $6.07 billion from $5.84 billion, a lift of roughly $230 million announced with its second-quarter results on September 2, 2026. That guidance increase, not the quarter itself, is what Reuters reported moved the stock and a basket of software peers the next day.

What Snowflake actually reported for the quarter ended July 31, 2026

According to the earnings release filed with the SEC on Form 8-K, Snowflake (NYSE: SNOW) posted product revenue of $1.49 billion for the second quarter of fiscal 2027, up 37% year over year, and total revenue of $1.55 billion, up 35%. Net revenue retention was 126%. Remaining performance obligations - contracted revenue not yet recognised - stood at $9.00 billion, up 30%. The company counted 828 customers with trailing 12-month product revenue above $1 million, up 27%, and 829 Forbes Global 2000 customers.

Note the fiscal calendar. Snowflake's fiscal year ends January 31, so "fiscal 2027" is mostly calendar 2026 and this quarter covers May through July 2026. The $6.07 billion figure is a company forecast for product revenue only - not total revenue, and not a result.

CNBC reported adjusted earnings of 62 cents a share against an LSEG consensus of 45 cents, and revenue of $1.55 billion against expectations below that. The company's own release does not establish analyst consensus; that comparison comes from CNBC's data, and a separate Yahoo Finance report cited a consensus revenue figure of $1.48 billion. Profitability depends heavily on which basis you read: Pulse2 reported a GAAP operating loss of $263 million alongside non-GAAP operating income of $237 million, a 15.3% margin. The roughly $500 million gap between those two lines is largely stock-based compensation and similar excluded items.

The key figures, and who published them

Which comparisons hold up, and which do not

Three numbers in the coverage look like they disagree but do not. Free cash flow of $83.8 million, reported by Yahoo Finance, and adjusted free cash flow of $92.3 million, reported by Pulse2, are different measures: the adjusted version adds back cash paid on employer payroll taxes tied to employee stock transactions. Yahoo Finance reported free cash flow came in below a $104 million analyst forecast, so cash generation was the one line that missed even as revenue and earnings beat. Similarly, the 15.3% non-GAAP operating margin reported for the quarter is not the same as the 14.5% full-year non-GAAP operating margin the company now guides to, up from 13.5%.

The share-price figures also differ by session, not by fact. CNBC reported a 22% gain in extended trading on Wednesday, September 2; Reuters reported a rise of nearly 25% during Thursday's regular session. Both can be true, and neither proves what caused the move - Reuters attributed the reaction to the raised forecast, and that attribution is the evidence available, not a demonstrated cause.

Snowflake bills by consumption: customers pay for compute used and data stored rather than per seat. That is why product revenue, not headcount or seat counts, is the number to watch, and it is the mechanism executives point to when they say AI workloads lift the core platform. It cuts the other way too. Consumption revenue can decelerate quickly if customers throttle AI spending, and a 126% net revenue retention rate measures what existing customers did over the past year, not what they have committed to next year.

Two things remain unknown from the disclosures found. Snowflake has not broken out how much of the $1.49 billion came from AI-specific products versus the core data warehouse, so the claim that AI is driving the acceleration rests on management commentary rather than a disclosed revenue line. And the release does not quantify the cost side of serving AI workloads beyond gross margin: Pulse2 reported non-GAAP product gross margin of 74.7% and GAAP product gross margin of 70.9%, and TheStreet reported Morgan Stanley flagged that gross margin slipped as AI workloads grew.

Analyst reaction and what the sector move does and does not show

TheStreet reported that Morgan Stanley's Sanjit Singh raised his price target to $470 from $300 while keeping an Overweight rating, with the target built on a discounted cash flow model assuming roughly 26% compound annual revenue growth through 2030 and free cash flow near $4.4 billion by then. Those are the analyst's assumptions, not company guidance. A price target change is not a rating change; Singh's rating was unchanged.

On the sector point in the original headline, Reuters reported that ServiceNow, Atlassian, Salesforce, Adobe and Intuit gained between 3.5% and 6% on September 3, while the iShares Expanded Tech-Software Sector ETF rose 3%. That is same-day co-movement, not proof that Snowflake's results changed those companies' businesses. It is also not the first time: CNBC reported that after Snowflake's first-quarter results on May 28, 2026 - which came with a plan to spend $6 billion on compute from Amazon - the shares closed 36% higher in their best day ever and software stocks popped alongside.

What to watch next

Snowflake guided to third-quarter product revenue of $1.588 billion to $1.593 billion, or 37% to 38% growth, with a 15.5% non-GAAP operating margin, per Yahoo Finance. That quarter ends October 31, 2026. Using the company's own figures - first-quarter product revenue of $1.334 billion, second-quarter $1.49 billion and the $6.07 billion full-year target - the implied fourth quarter is roughly $1.66 billion; that is our arithmetic on rounded company numbers, not a Snowflake disclosure. A report date for the third quarter was not verified in the sources reviewed here.