Snowflake posted product revenue of US$1.49bn for the second quarter of fiscal 2027, a 37-38% jump from a year earlier. The company raised its full-year product revenue growth forecast to 36%, citing accelerating demand for its core data platform and a sharp increase in AI-related revenue.
CFO Brian Robins said this marks the third straight quarter of accelerating product revenue growth, "driven by strength in both our core data platform and a meaningful step-up in AI revenue." He added: "We delivered this growth while expanding operating margin. Balancing growth with discipline remains a top priority."
AI products draw thousands of new accounts
CoCo, Snowflake's AI coding agent, reached 9,100 accounts during the quarter, with 2,000 of those added in Q2 alone. The tool is approaching the 10,000-account milestone as enterprise customers embed it into development workflows. The company also reported 692 new customers joined the platform this quarter, a 34% year-over-year increase. Fourteen of those additions came from the Forbes Global 2000 list.
CEO Sridhar Ramaswamy described AI as compounding Snowflake's core advantage on three fronts. "First, as enterprises modernise their data estates for AI, demand for our core platform continues to scale. Second, AI is creating a new frontier for what Snowflake can deliver," he said. "Third, accounts using these AI products drive an uplift in overall platform consumption, accelerating the flywheel effect of the Agentic Enterprise."
CoWork, another AI product in the portfolio, now counts 5,800 accounts. The company released 330 products in the first half of the fiscal year, and this quarter introduced Cortex Sense and Cortex AI Gateway - both designed to turn insights into action through an integration with Natoma.
Customer expansion and partner ecosystem
1Password and Indeed selected Snowflake as the foundation for their data and AI transformation work during the quarter. The platform's partner network continues to underpin its multi-cloud strategy. Snowflake integrates with Amazon Web Services for cloud storage, scalable compute, and joint AI marketplace offerings. Its native integration with Microsoft Azure supports multi-cloud deployments and shared data governance across enterprise environments.
The company also maintains a zero-copy data architecture partnership with Salesforce, enabling real-time data sharing without duplicating files. A collaboration with NVIDIA brings accelerated computing and generative AI software into the Snowflake Data Cloud for custom enterprise AI model development.
Why this matters for executives and strategy
Snowflake's results signal that enterprise AI spending is shifting from experimentation to operational deployment - and that this shift is pulling core platform revenue along with it. The 37% product revenue growth, coupled with expanding margins, suggests the AI upsell is real and measurable, not just a slide-deck promise. For strategy leaders, the CoCo and CoWork adoption numbers offer a concrete benchmark: AI coding agents and collaborative AI tools are moving past pilot phase inside large organisations, and the vendors that host the data are positioning to capture the next layer of workflow spending.
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