Snowflake shares jump on stronger results and AI coding growth
Snowflake shares jump on beat-and-raise earnings, stronger AI traction and outlook See how CoCo gains and margin upgrades are fueling the stock’s after-hours rally
Snowflake shares rose 22% in afterhours trading on Wednesday after the company reported quarterly results and guidance that came in above Wall Street expectations.
The data analytics software maker said adjusted earnings were 62 cents per share, ahead of analysts’ estimate of 45 cents, while revenue reached $1.55 billion versus the expected $1.48 billion. Revenue increased 35% from a year earlier, and the company’s net loss narrowed to $191.7 million from $297.9 million in the same period last year.
Snowflake also said its AI coding agent, CoCo, continued to gain traction, with 9,100 accounts using the product, up by more than 2,000 during the quarter. For the current quarter, the company forecast product revenue of $1.59 billion, above analyst estimates, and raised its fullyear product revenue outlook to $6.07 billion. It also lifted its projected adjusted operating margin to 14.5% from 13.5%.