Snowflake Surges 26% After Quarterly Results Beat Expectations

The shares of Snowflake jumped on Thursday after the cloud-based data company reported a strong quarterly performance that beat the market's expectations and raised the projections for its earnings this year. Snowflake shares opened at $337, much higher than its previous closing price of $306, and maintained an upward trend throughout the day. 

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During the session, it hit as high as $384, which is the highest level since December 2021 and put the stock up about 26% compared to the prior close on Wednesday. This massive rise in the stock price comes amid Snowflake’s announcement of $1.49 billion product revenue for Q3, up 37% from the corresponding period a year ago. The total revenues for Q3 were estimated at $1.55 billion. 

The adjusted profit per share figure was at 62 cents, beating the expectations of 45 cents from the analysts.  

Moreover, the positive guidance that the firm has given has also boosted investors' sentiment. Snowflake forecasts its product revenue for the upcoming fiscal year ending next January at $6.07 billion. This figure has beaten the previous target set by the company in May and also exceeds the consensus estimate of $5.86 billion.

Product revenue makes up for around 95% of Snowflake's total revenues. Remaining performance obligations stood at $9 billion. 

When commenting on the findings, CEO Sridhar Ramaswamy indicated that Snowflake still benefitted from investments in AI by enterprises. In his words, sales jumped 37% from the previous year to $1.49 billion and stated that the use of AI was a growth catalyst for the firm. 

This year, Snowflake had become one of the highest performing stocks in the tech industry. Prior to experiencing such a big jump this week, it had already gone up by 40% this year, versus 12% for the S&P 500. Apart from that, the stock has climbed steadily during the past four months, coming close to a 143% gain. 

The rebound came following April when the stock recovered after being under pressure since November 2025. After being pressured during November 2025 to April 2026, Snowflake recorded an 87% increase in revenue in April as demand for its cloud data-warehousing solutions grew, and AI technologies were adopted. 

Its AI products continue to attract new users during the last period. Snowflake said Cortex Code, its coding assistant, surpassed 9,100 accounts after adding more than 2,000 during the period. Enterprise chatbot CoWork expanded to 5,800 accounts.  

The company also entered into a five-year agreement worth $6 billion with Amazon Web Services last quarter. The deal covers the use of AWS Graviton processors and AI infrastructure.