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Snowflake reported product revenue of US$1.49bn for the quarter, up 37-38% from a year earlier, and has adjusted its full-year product revenue growth forecast to 36% year over year. The company attributes the acceleration to demand for its core data platform and rising AI sales, noting CoCo, its AI coding agent, reached 9,100 accounts after adding 2,000 in the quarter. CFO Brian Robins said this marks a third consecutive quarter of accelerating product revenue growth as Snowflake expands operating margin, and described the primary shift as strategic: turning newer AI products into drivers of overall platform consumption and customer wins.
With product revenue of US$1.49bn, up 37% year-over-year… Snowflake continues to power the enterprise AI revolution.
Sridhar Ramaswamy, CEO of Snowflake
Key takeaways
- Quarterly product revenue: Snowflake reported product revenue of US$1.49bn in Q2 H2 Fiscal 2027, up 37-38% year-over-year.
- Guidance raised: The company increased its forecast for full-year product revenue growth to 36% versus the prior year.
- AI adoption: CoCo, Snowflake’s AI coding agent, reached 9,100 accounts after adding 2,000 accounts in the quarter.
- Customer gains and product launches: Snowflake added 692 new customers this quarter (34% YoY), launched Cortex Sense and Cortex AI Gateway, and reported 330 products released in H1.
Table of contents
AI products are turning usage into revenue
Snowflake has made AI functionality central to growing consumption on its data platform. The company reported CoCo has 9,100 accounts and CoWork 5,800 accounts, and said accounts using those agents generate higher platform consumption.
That mechanism matters because platform consumption is the invoiced metric that converts product adoption into revenue. Snowflake frames AI as a multiplier: enterprises modernise data estates to run models and then pay for increased storage, compute and managed services as those models run in production.
The company also points to product launches aimed at operationalising AI. This quarter’s introductions, Cortex Sense and Cortex AI Gateway, are described as tools that action insights and connect models to enterprise systems via an integration with Natoma. Snowflake argues those tools shorten time to value and encourage broader platform use.
Key phrase: Agentic Enterprise
Revenue mix and customer metrics underpin the guidance raise
The quarter’s US$1.49bn in product revenue, a 37-38% year-over-year rise, is the figure Snowflake cites in widening its outlook. The company has raised its full-year product revenue growth forecast to 36% year over year, signalling confidence that current momentum will persist through the fiscal year.
Customer additions support that confidence: Snowflake added 692 net new customers in the quarter, a 34% year-over-year increase, and noted 14 of those are in the Forbes Global 2000. The company also said it released 330 products in H1, a cadence of development executives present as complementary to sales expansion.
CFO Brian Robins framed the quarter as a balance of growth and margin: he says the firm delivered accelerating product revenue growth while expanding operating margin. The line between product revenue growth and operating leverage will be watched closely in coming quarters as the firm invests behind AI releases.
Key phrase: US$1.49bn
Partners and product strategy sharpen the competitive offer
Snowflake emphasises deep integrations with cloud and accelerator partners to make its AI proposition practical for large customers. The company lists Amazon Web Services, Microsoft, Salesforce and NVIDIA as key partners and describes joint go-to-market and technical integrations ranging from multi-region deployment to accelerated computing and generative AI software.
Those partnerships give Snowflake infrastructure reach and hardware-accelerated model runtimes it cannot own itself. The company presents this as a distribution and performance strategy: customers can run data workflows in Snowflake while consuming specialised compute or model services from partners.
At the same time, pushing AI tools into enterprises creates operational complexity. Snowflake’s rollout of Cortex Sense and Cortex AI Gateway — and their Natoma link — is pitched as simplifying that complexity, but customers will judge the value in implementation projects and measurable uplift to platform consumption.
Key phrase: Cortex AI Gateway
| Partner | Role described | CEO | Headquarters |
|---|---|---|---|
| Amazon Web Services (AWS) | Cloud storage, scalable compute and joint AI marketplace solutions | Matt Garman | Seattle, Washington, US |
| Microsoft | Native Azure integration for multi-cloud deployments and analytics | Satya Nadella | Redmond, Washington, US |
| Salesforce | Zero-copy data architecture and real-time data sharing | Marc Benioff | San Francisco, California, US |
| NVIDIA | Accelerated computing and generative AI software integration | Jensen Huang | Santa Clara, California, US |
Reasons to be optimistic and cautious
The case for
- AI agent adoption is measurable and growing: CoCo reached 9,100 accounts with 2,000 added this quarter, which supports continued platform consumption growth.
- Snowflake raised full-year product revenue guidance to 36% year-over-year, indicating management expects current demand and monetisation to continue.
- Strategic partnerships with AWS, Microsoft and NVIDIA provide distribution and technical capabilities that can accelerate enterprise AI deployments.
The case against
- Snowflake cites a meaningful step-up in AI revenue but does not publish a separate AI revenue line, leaving the scale of AI-derived revenue unquantified.
- Rapid product release cadence (330 products in H1) increases integration and support demands, which could slow customer implementations and delay consumption uplift.
- Large-enterprise deployments can be multi-quarter projects; early account wins do not guarantee immediate sustained revenue from all AI tool adopters.
What to be careful about
- AI revenue is referenced but not broken out as a standalone figure, creating uncertainty about how much of the US$1.49bn quarter is AI-driven.
- Operational complexity from rapid product rollouts and integrations (for example, Cortex products and Natoma linkage) could lengthen time to commercial impact.
- Platform consumption growth depends on successful implementation at large customers; 14 new customers from the Forbes Global 2000 this quarter reduces concentration risk but does not eliminate execution risk.
The bottom line
Snowflake’s latest quarterly numbers show a company positioning AI as the growth engine for its data platform. Product revenue of US$1.49bn and an upgraded full-year product growth target of 36% point to momentum; management links that momentum to uptake of CoCo, CoWork and a wave of product releases that include Cortex Sense and Cortex AI Gateway. The practical test for Snowflake is execution: converting AI experimentation into sustained platform consumption at scale and demonstrating explicitly how much revenue is AI-derived. Investors and customers will watch future quarters for clearer AI revenue disclosure and for evidence that the expanded product set shortens time to value.
What to watch
- Watch for Snowflake’s next quarterly results for a full update on product revenue and any first public disclosure of AI-specific revenue; no date has been set.
- Watch whether CoCo passes the 10,000-account milestone and how that conversion translates into platform consumption metrics; no date has been set.
Frequently asked questions
What drove Snowflake’s reported 37-38% product revenue growth?
Management attributes the acceleration to strength in the core data platform and rising AI revenue. The company reported product revenue of US$1.49bn for the quarter and says adoption of AI agents such as CoCo contributed materially to consumption growth.
How big is CoCo’s installed base and how fast is it growing?
CoCo reached 9,100 accounts at the time of the results, with 2,000 of those accounts added in the quarter, a pace Snowflake presents as evidence of rapid adoption.
What new products did Snowflake introduce and why do they matter?
Snowflake introduced Cortex Sense and Cortex AI Gateway this quarter and reported 330 product releases in H1; executives describe the Cortex products as tools that action insights and integrate with Natoma to deploy AI into enterprise workflows.
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