Snowflake Accelerates Its Lead as the Enterprise AI Revolution Gains Momentum
The second quarter fiscal 2027 earnings call for Snowflake has highlighted the company's continued leadership in the enterprise AI revolution. With its unique approach to making data and AI accessible, seamless, and trustworthy, Snowflake is transforming the way organizations operate, build, and make decisions.
Snowflake's CEO, Sridhar Ramaswamy, emphasized that the company remains at the center of this transformation, with its agentic enterprise solution bringing together a governed data foundation, access to leading AI models, deep application workflows, and a unifying control plane. This combination enables customers to build faster, execute more efficiently, and reimagine their businesses in ways previously impossible.
The traction Snowflake is gaining in the market is evident in its strong business performance, as seen in its Q2 results. The company's product revenue reached $1.49 billion, with growth accelerating to 37% year-over-year, marking the second consecutive quarter of record sequential dollar growth. This acceleration comes after a 30% year-over-year growth exit from Q4 of last fiscal year.
Moreover, Snowflake's non-GAAP operating margin expanded by more than 400 basis points year-over-year to 15%. This performance demonstrates how AI is compounding the company's advantage across three reinforcing dynamics. Firstly, AI is bringing new workloads onto the platform, with enterprises turning to Snowflake to power their data and context foundations.
Secondly, Snowflake's first-party AI products, CoCo and CoWork, continue to see rapid adoption as customers build and deploy agents on the platform. This expansion creates new opportunities for growth and solidifies Snowflake's role in the agentic control plane.
Lastly, AI activation continues to lift overall platform consumption, with customers using AI on Snowflake consuming more across the data platform. This structural multiplier is driving business acceleration, as seen in the company's strong Q2 results.
The heart of this momentum lies in the continued strength of Snowflake's core business. The company now provides the data and AI foundation for 14,554 customers worldwide. Customers continue to turn to Snowflake due to its ease of use, seamless connectivity for collaboration, and enterprise-grade governance and security.
This quarter, Snowflake added 692 net new customers, including 14 from the Forbes Global 2000, representing a 32% increase in net new customer additions year-over-year. At the same time, some of the world's most recognizable enterprises are deepening their relationships with Snowflake.
