Highlights

  • Q2 FY2027 total Revenue of $1.55 billion with product revenue of $1.49 billion, up 37% year-over-year
  • Net Revenue Retention (NRR) of 126%, reflecting strong expansion within the existing customer base
  • Remaining Performance Obligations (RPO) grew 30% year-over-year to $9.00 billion, signalling durable pipeline
  • FY2027 product revenue growth guidance raised to 36%, reflecting accelerating Demand across AI and data workloads

Snowflake (NYSE:SNOW), the cloud-native data platform provider, reported a robust second quarter of fiscal year 2027, delivering product revenue growth of 37% year-over-year and exceeding expectations across its key operating metrics. The results reinforce Snowflake's position as the leading Data Cloud for enterprises seeking to consolidate analytics, AI, and application development on a single platform. Q2 FY2027 total revenue of $1.55 billion with product revenue of $1.49 billion, up 37% year-over-year.

Product Revenue Growth and Customer Expansion

Product revenue reached $1.49 billion in Q2 FY2027, representing 37% growth as enterprises expanded their consumption of Snowflake's data warehousing, data sharing, and AI-driven analytics capabilities. The company's Net Revenue Retention rate of 126% demonstrates that existing customers are significantly increasing their spending on the platform, driven by new workloads including Cortex AI, Snowpark, and native application development. Net Revenue Retention (NRR) of 126%, reflecting strong expansion within the existing customer base.

The number of customers generating more than $1 million in trailing twelve-month product revenue grew 27% year-over-year to 828, reflecting the increasing scale at which large enterprises rely on Snowflake for mission-critical data operations. The expansion of high-value customers is a key indicator of platform stickiness and long-term revenue durability. Remaining Performance Obligations (RPO) grew 30% year-over-year to $9.00 billion, signalling durable pipeline.

AI and Data Cloud Strategy

Snowflake's investments in AI-native capabilities are bearing fruit, with Cortex AI providing enterprises access to large language models and Machine Learning services directly within the Snowflake Data Cloud. The elimination of data movement between AI and analytics environments is a significant differentiator, enabling faster time-to-insight for customers building intelligent applications. Snowflake's open table format support and interoperability with Apache Iceberg further broadens its appeal to multi-cloud enterprises. FY2027 product revenue growth guidance raised to 36%, reflecting accelerating demand across AI and data workloads.

Remaining Performance Obligations and Visibility

Remaining Performance Obligations of $9.00 billion, up 30% year-over-year, provide management with strong forward revenue visibility and reflect the multi-year nature of Snowflake's enterprise contracts. The RPO growth rate indicates that Snowflake is not only retaining existing contracts but actively booking larger and longer-duration deals as enterprises commit to the Data Cloud at scale.

Raised Guidance and Growth Trajectory

Following the Q2 FY2027 results, Snowflake raised its full-year FY2027 product revenue growth guidance to 36%. The company's Q3 FY2027 results are scheduled for December 2, 2026. Management remains focused on Operating Leverage improvement while investing in product innovation and go-to-market capacity to capture the expanding enterprise AI and data infrastructure market.