In a market anxious about the impact of rising U.S. tariffs on corporate profits, cloud data giant Snowflake Inc. SNOW delivered a blowout second-quarter earnings report on Wednesday, raising its full-year forecast and revealing an aggressive hiring spree that signals strong confidence in future growth.
Check out SNOW’s stock price over here.
Snowflake Hires More In 6 Months Than In Last Two Years
The strong results and bullish outlook stand in stark contrast to the broader uncertainty faced by many S&P 500 firms, a sentiment captured in a pre-earnings season Goldman Sachs analysis that noted clients were “keenly focused on who will ultimately shoulder the cost of tariffs.”
Snowflake, however, is firmly in investment mode. Chief Financial Officer Mike Scarpelli revealed the company has hired more sales and marketing staff in the first six months of this year than in the prior two years combined.
This push is fueled by accelerating adoption of the company’s artificial intelligence capabilities, which management said influenced nearly half of all new customer wins in the quarter.
Snowflake Touts Microsoft Azure As ‘Fastest-Growing Cloud’
“Our core business analytics continues to be strong. It’s the foundation of the company,” said CEO Sridhar Ramaswamy on the call, emphasizing that the company’s new AI tools are delivering “enormous value” on top of that foundation.
Buoyed by the strong momentum, Snowflake raised its fiscal 2026 product revenue guidance to $4.395 billion. The company’s outperformance was broad-based, with particular strength seen in its partnership with Microsoft Corp. MSFT. “Azure was our fastest-growing cloud. It actually grew 40% year over year,” Scarpelli noted.
See Also: Snowflake Q2 Earnings: Revenue, EPS Beat Estimates On Continued AI Momentum, Shares Surge
SNOW Adds 533 New Customers In Q2
The company’s healthy expansion within its existing customer base was reflected in its 125% net revenue retention rate.
Snowflake added 533 net new customers during the quarter, including a record 50 who crossed the $1 million annual revenue threshold, demonstrating significant momentum in a cautious economic environment.
Snowflake Q2 Earnings Snapshot
Its second-quarter revenue of $1.14 billion beat analyst estimates of $1.09 billion. The adjusted earnings of 35 cents per share beat analyst estimates of 27 cents per share.
The company reported product revenue of $1.09 billion for the quarter ending July 31, a 32% year-over-year jump that marked an acceleration from the previous quarter.
Snowflake expects third-quarter product revenue in the range of $1.125 billion to $1.13 billion, up approximately 25.5% year-over-year.
Price Action
Snowflake’s shares closed 3.11% higher on Wednesday and jumped 13.19% after hours. It was up 27.22% year-to-date and 79.63% over the year.
Benzinga’s Edge Stock Rankings indicate that SNOW maintains a stronger price trend in the medium and long terms but a weaker trend in the short term. However, the stock scores poorly on value and growth rankings. Additional performance details are available here.
The SPDR S&P 500 ETF Trust SPY and Invesco QQQ Trust ETF QQQ, which track the S&P 500 index and Nasdaq 100 index, respectively, rose on Wednesday. The SPY was up 0.23% at $646.63, while the QQQ also advanced 0.15% to $573.49, according to Benzinga Pro data.
On Thursday, the futures of the S&P 500, Dow Jones, and Nasdaq 100 indices were trading in a mixed manner.
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