Why is Snowflake stock surging today?

Snowflake stock surged 20.9% in after-hours trading to reach $369.89 after the AI data cloud company reported fiscal second-quarter 2027 results that topped expectations on every key metric and accompanied the beat with a significant raise to full-year guidance. Adjusted EPS of $0.62 crushed the $0.45 analyst consensus, while total revenue of $1.55 billion exceeded the $1.48 billion estimate, representing 35% year-over-year growth.

Product revenue — the most closely watched metric for Snowflake’s consumption-based model — came in at $1.49 billion, up 37% year-over-year and marking the third consecutive quarter of accelerating growth. Management raised its full-year fiscal 2027 product revenue forecast to $6.07 billion from $5.84 billion and widened its adjusted operating margin target to 14.5%, up from 13.5% guided in May. The company also credited momentum in its CoCo AI coding agent, which grew to 9,100 accounts during the quarter. For Q3, Snowflake guided product revenue to approximately $1.59 billion, ahead of the roughly $1.50 billion analysts had anticipated.

The move was further supported by a wave of pre-earnings analyst price target increases, with firms including Wells Fargo, Cantor Fitzgerald, UBS, Rosenblatt, and BTIG all raising targets in the days leading up to the report, reflecting growing conviction around AI workload adoption. The broader market provided no meaningful tailwind, with the S&P 500 and Nasdaq each slipping slightly on the day, underscoring that the after-hours rally was entirely a function of company-specific execution.

Taken together, the combination of a significant earnings beat, accelerating product revenue growth for a third straight quarter, a raised full-year outlook, and expanding margins delivered precisely the evidence investors had demanded to justify Snowflake’s premium valuation — sending the stock well above its prior 52-week high of $341.95.