The quarter cleared a high bar on both revenue and earnings. Published expectations were roughly $1.48 billion of revenue and $0.45 of non-GAAP diluted EPS; Snowflake delivered $1.547 billion of revenue and $0.62 of non-GAAP diluted EPS, making this a clear beat rather than merely an in-line result.
| Metric | Q2 FY2027 | Q2 FY2026 | Versus expectation |
|---|---|---|---|
| Product revenue | $1,491.9M (37% growth) (Financial Highlights) | $1,090.5M (32% growth) (Revenue disaggregation) | Above roughly $1.4B consensus |
| Total revenue | $1,546.8M (35% growth) (Income Statement) | $1,145.0M (32% growth) (Income Statement) | Above roughly $1.48B consensus |
| Non-GAAP diluted EPS | $0.62 (GAAP to non-GAAP reconciliation) | $0.35 (GAAP to non-GAAP reconciliation) | Above roughly $0.45 consensus |
| Non-GAAP operating margin | 15% (Financial Highlights) | 11% (Financial Highlights) | Improved |
| Non-GAAP free-cash-flow margin | 5% (Financial Highlights) | 5% (Financial Highlights) | In line year over year |
Growth momentum was better than the company’s own prior setup implied. Product revenue accelerated for a third straight quarter, reaching 37% growth versus 34% in Q1 and the company’s earlier Q2 guide of roughly 30%; management also raised full-year product-revenue growth guidance to 36% from the prior 31% framework. 〔0〕
Profitability improved materially, but the headline GAAP loss still masks heavy equity compensation. GAAP operating loss narrowed to $263.0 million from $340.3 million, while non-GAAP operating income rose to $237.0 million from $127.6 million and margin expanded to 15% from 11% (Operating income reconciliation). However, stock-based compensation remained $423.6 million in the quarter, equal to 29% of revenue in the company’s operating-margin reconciliation (Operating income reconciliation). That makes the operating improvement real on the company’s adjusted measure, but less complete on a GAAP basis.
The net read is a broad beat with a stronger forward signal, not just an AI-themed narrative. Revenue, adjusted EPS, product growth, and operating margin all landed ahead of the standing expectation, while full-year growth guidance moved higher. The main offset is that total gross margin slipped to 72% non-GAAP from 73% a year earlier and adjusted free-cash-flow margin remained at 6% (Gross profit reconciliation; Financial Highlights), so the positive surprise rests primarily on demand acceleration and operating leverage rather than expanding cash margins.
Read the original 8-K on SEC EDGAR ↗