Core Insights - Snowflake's Q2 FY2026 product revenue reached $1.0905 billion, representing a 32% year-over-year growth, exceeding market expectations [1] - The company raised its full-year product revenue guidance for FY2026 to $4.395 billion [1] - Adjusted earnings per share for Q2 were $0.35, nearly double compared to the same period last year and above analyst expectations [1] Financial Metrics - Remaining Performance Obligations (RPO) stood at $6.9 billion, reflecting a 33% year-over-year increase [1] - The number of high-value customers continued to grow, with a 5% year-over-year increase in Fortune Global 2000 clients [1]

After the close today, we got still one more blowout quarter from Snowflake, the cloud-based data management analytics platform that I like so much. Now, this comes on top of the last blowout quarter they reported three months ago. Tonight, they posted a solid top and bottom line beat strong guidance for the current quarter.Hence why the stock screaming after hours trading. Not only does Snowflake have fantastic sales momentum, but the business is also becoming ever more profitable. It was the star of tonig ...

Group 1: Nvidia - Nvidia's revenue and profit exceeded expectations, but the guidance for the upcoming quarter was less impressive, with a focus on the "absence of China" as a key issue [10][12] - The company reported a year-on-year revenue growth rate of over two years' lowest, yet still above analyst expectations, with a significant drop in data center revenue due to a $4 billion decrease in H20 sales [12] - Nvidia announced a new $60 billion share buyback authorization and highlighted a potential $50 billion business opportunity in China for the year [10][12] Group 2: Meituan - Meituan's Q2 adjusted net profit plummeted 89% year-on-year to 1.49 billion yuan, significantly below expectations, with marketing expenses increasing by 51.8% [10][12] - The company achieved a revenue growth of 11.7% year-on-year, but its operating profit fell by 98% to 230 million yuan, with a drastic drop in operating profit margin from 13.7% to 0.2% [12] - Meituan's core local business revenue was 65.3 billion yuan, a 7.7% increase year-on-year, but the company anticipates significant losses in Q3 due to ongoing fierce competition [10][12] Group 3: Snowflake - Snowflake reported strong earnings, raising its full-year guidance, which led to a 13% increase in its stock price post-announcement [6][16] - The company’s remaining performance obligations reached $6.9 billion, a 33% year-on-year increase, indicating strong long-term customer investment [16] Group 4: Honey Snow Group - Honey Snow Group reported a 39.3% year-on-year growth in the first half of the year, with net profit increasing by 44.1% and global store expansion reaching 53,000 [15] Group 5: Global Economic Context - The U.S. stock market showed volatility ahead of Nvidia's earnings report, with the S&P 500 barely reaching a new high, while the Chinese concept stock index fell by 2.58% [2] - The U.S. Treasury yields fell across the board, with the 2-year yield dropping over 6 basis points, amid expectations of continued monetary policy easing from the Federal Reserve [2]

Core Viewpoint - Snowflake reported strong Q2 performance, driven by its AI data cloud business, with revenue growth of 32% year-over-year, surpassing analyst expectations [1][4]. Financial Performance - Q2 net loss was $298 million, with a loss per share of $0.89; revenue reached $1.144 billion, exceeding the expected $1.09 billion [1]. - Non-GAAP earnings per share were $0.35, above the anticipated $0.27 [1]. - Product revenue is projected to be approximately $4.4 billion for the fiscal year ending January, representing a 27% increase from the previous year, exceeding the average analyst estimate of $4.34 billion [1]. Market Position and Competition - Despite concerns about competition from new AI-focused suppliers, Snowflake's platform remains resilient due to its compatibility with various AI models [1]. - The company has seen a 21% increase in new customer acquisition, with 654 customers generating over $1 million in product sales over the past year [8]. - Databricks, a major competitor, recently raised funding, valuing the company over $100 billion, but investor concerns about competition have eased over the past year [7]. Product Development and Strategy - Snowflake is actively developing products to facilitate the use of generative AI technologies on its platform, with new product contributions exceeding expectations in Q2 [4]. - The company added over 500 employees in the quarter, with the number of sales and marketing hires in the past six months surpassing the total from the previous two years [10]. Stock Performance - Snowflake's stock has risen nearly 30% this year, outperforming most software companies, although it experienced a 9% decline in the past month [4]. - Following the earnings announcement, the stock price increased by nearly 13% [1].

Core Insights - Snowflake Inc. reported $1.14 billion in revenue for the quarter ended July 2025, marking a year-over-year increase of 31.8% and exceeding the Zacks Consensus Estimate of $1.09 billion by 5.51% [1] - The company achieved an EPS of $0.35, up from $0.18 a year ago, representing a surprise of 34.62% compared to the consensus estimate of $0.26 [1] Financial Performance Metrics - Remaining performance obligations stood at $6.9 billion, slightly above the average estimate of $6.84 billion from four analysts [4] - The number of customers with trailing 12-month product revenue greater than $1 million increased to 654, surpassing the average estimate of 634 from two analysts [4] - Product revenue was reported at $1.09 billion, exceeding the average estimate of $1.04 billion from 11 analysts, reflecting a year-over-year change of 31.5% [4] - Revenue from professional services and other sources was $54.47 million, above the average estimate of $45.82 million, with a year-over-year increase of 37.7% [4] - Non-GAAP product gross profit reached $833.63 million, exceeding the average estimate of $780.76 million from nine analysts [4] - GAAP product gross profit was reported at $788.18 million, higher than the average estimate of $744.86 million from two analysts [4] Stock Performance - Over the past month, Snowflake's shares have returned -11.2%, contrasting with the Zacks S&P 500 composite's increase of 1.3% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Points - Nvidia's earnings report is highly anticipated and is seen as a bellwether for the broader market, potentially influencing stock trends for the year [3] - Nvidia's stock has a significant weight in the S&P 500, accounting for approximately 8% [4] - Nvidia reported strong Q2 earnings with revenue of $46.7 billion, exceeding market expectations, but its data center revenue was slightly below expectations [7] Company Performance - Nvidia's Q2 revenue was $46.7 billion, up from $30.04 billion year-over-year, and above the market expectation of $46.058 billion [7] - The company's Q2 net profit was $26.422 billion, compared to $16.599 billion in the same quarter last year, and above the expected $23.465 billion [7] - Nvidia announced an additional $60 billion stock buyback plan [5][7] Market Reaction - Following the earnings report, Nvidia's stock initially dropped over 5% in after-hours trading but later narrowed the decline to under 2% [5] - Despite the drop, Nvidia has exceeded earnings expectations in 12 out of the last 13 quarters, although it has seen stock price declines after earnings releases in 5 instances [5] Other Company Updates - CrowdStrike reported Q2 revenue of $1.17 billion, surpassing expectations of $1.15 billion [8] - Snowflake anticipates Q3 product revenue of approximately $1.13 billion, slightly above analyst expectations [9] - GlobalFoundries reported good progress in obtaining subsidies under the CHIPS Act without the need to relinquish equity [10]

Financial Data and Key Metrics Changes - Product revenue for Q2 was $1,090 million, up 32% year over year, demonstrating an acceleration in growth from the previous quarter [10] - Remaining performance obligations totaled $6,900 million with year over year growth of 33% [10] - Net revenue retention rate was a healthy 125% [10] - Non-GAAP operating margin increased to 11%, reflecting a focus on efficiency and operational growth [10][26] - Non-GAAP product gross margin was 76.4% [26] - The company ended the quarter with $4,600 million in cash, cash equivalents, and investments [28] Business Line Data and Key Metrics Changes - New features across all four product categories (analytics, data engineering, AI, and applications and collaboration) outperformed expectations [25] - In Q2, 50 customers crossed the $1,000,000 in trailing twelve-month revenue, totaling 654 such customers [25] - The company added 533 new customers, including 15 Global 2000 companies this quarter [22] Market Data and Key Metrics Changes - Azure was the fastest-growing cloud platform for the company, growing 40% year over year [41] - The company is seeing strong adoption of open data formats, with over 1,200 accounts using Apache Iceberg [19] - AI is influencing nearly 50% of new logos won in Q2, with 25% of all deployed use cases involving AI [19] Company Strategy and Development Direction - The company remains focused on empowering enterprises through data and AI, emphasizing product innovation and operational efficiency [9] - The introduction of Snowflake Intelligence and Cortex AI SQL aims to enhance AI capabilities and streamline data management [12][14] - The company is strategically investing in partnerships and expanding its go-to-market engine to capture growth opportunities [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the durability of growth driven by data modernization and AI transformation [34] - The company anticipates continued strong demand for its AI capabilities, with budgets being allocated for AI projects [56] - Management highlighted the importance of ease of use and customer experience in driving adoption and value realization [11][113] Other Important Information - The company is making progress on its CFO transition and will announce details once available [30] - The company did not utilize its repurchase program in Q2, with $1,500 million remaining on its authorization [28] Q&A Session All Questions and Answers Question: Insights on data infrastructure modernization among Fortune 500 companies - Management indicated that data modernization is just the beginning, with a focus on making data AI-ready to drive value realization [34] Question: Contribution from European market - Management noted that Europe is still developing but contributing, with groundwork being laid for new customer acquisition [38] Question: Performance on Azure - Azure was highlighted as the fastest-growing cloud, with better alignment between the company's field and Microsoft contributing to growth [41] Question: Drivers of upside in Q2 - Management attributed the upside to strong performance in core business and new product adoption, with large customers migrating new workloads [76] Question: Competitive environment and customer preferences - Management emphasized Snowflake's strengths in AI data platform capabilities and the importance of product quality and governance in customer decisions [80] Question: Professional services growth - Management clarified that the growth in professional services was driven by milestones from a large customer, with most services being performed by partners [85] Question: Expansion rate and consumption trends - Management indicated that the uptick in expansion rate was driven by large customers migrating new workloads, with optimizations being a normal part of the process [88] Question: Update on Crunchy integration - Management reported strong progress on the integration of Crunchy into Snowflake Postgres, with significant customer interest [104] Question: AI adoption and monetization strategy - Management highlighted a deliberate strategy for AI adoption, focusing on ease of use and broad adoption without requiring a massive sales effort [113]

Financial Data and Key Metrics Changes - Product revenue for Q2 was $1,090 million, up 32% year over year, indicating an acceleration in growth from the previous quarter [7] - Remaining performance obligations totaled $6,900 million with year-over-year growth of 33% [7] - Net revenue retention rate was 125%, reflecting strong customer loyalty [7] - Non-GAAP operating margin increased to 11%, showcasing a focus on efficiency and operational growth [7][22] - The company ended the quarter with $4,600 million in cash and investments [24] Business Line Data and Key Metrics Changes - New customer additions increased by 21% year over year, with 50 customers crossing the $1 million in trailing twelve-month revenue, totaling 654 such customers [21][22] - Non-GAAP product gross margin was 76.4% [22] - Non-GAAP adjusted free cash flow margin was 6% [23] Market Data and Key Metrics Changes - Azure was the fastest-growing cloud platform for the company, growing 40% year over year [36] - The company added 533 customers in the quarter, including 15 Global 2000 companies [18] Company Strategy and Development Direction - The company is focused on empowering enterprises through data and AI, with a commitment to product innovation and operational efficiency [6] - The introduction of Snowflake Intelligence and other AI-driven products is central to the company's strategy, aiming to enhance customer experience and operational efficiency [10][11] - The company is expanding its reach into the $17 billion data integration market with Snowflake OpenFlow [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing data modernization efforts among Fortune 500 and Global 2000 companies, viewing it as a long-term growth opportunity [29] - The company anticipates continued strong demand for AI capabilities, with nearly 50% of new logos won in Q2 influenced by AI [15] - Management expects product revenue for Q3 to be between $1,125 million and $1,130 million, representing 25% to 26% year-over-year growth [25] Other Important Information - The company launched approximately 250 new capabilities in the first half of the year, demonstrating a strong pace of innovation [13] - The company is making progress on its CFO transition and will announce details once available [26] Q&A Session Summary Question: Insights on data infrastructure modernization among Fortune 500 companies - Management believes data modernization is just the beginning, driven by the need for scalable systems and AI readiness [29] Question: Contribution from European market - Europe is still developing but contributing, with groundwork being laid for new customer acquisition [33] Question: Performance on Azure - Azure is the fastest-growing cloud platform for the company, with significant alignment and collaboration with Microsoft [36] Question: Drivers of upside in Q2 - The upside was driven by large customer migrations and new product contributions, with core business performance being strong [71] Question: Competitive environment and customer preferences - Management believes Snowflake stands out as the best AI data platform, with increasing recognition of its product quality and capabilities [75] Question: Professional services growth - Growth in professional services was driven by a large customer milestone, with most services being performed by partners [80] Question: AI adoption and monetization strategy - The company has seen broad adoption of AI products without massive sales efforts, focusing on ease of use and value delivery [111] Question: Cortex AI usage and primary use cases - Primary use cases for Cortex AI involve combining structured and unstructured data for flexible access and actionable insights [117]

Financial Performance - Product revenue reached $1.09 billion in Q2 FY26, representing a 32% year-over-year growth[53] - The company's net revenue retention rate was 125% in Q2 FY26[41] - Non-GAAP product gross margin was 76% in Q2 FY26[41] - Non-GAAP operating margin was 11% in Q2 FY26[75] - The company had 654 customers with over $1 million in product revenue, a 30% year-over-year growth[41, 67] - Remaining Performance Obligations (RPO) reached $6.93 billion, with 50% expected to be recognized as revenue in the next twelve months[57] Customer and Market Growth - The company's total customer base grew to 12,062[61] - Forbes Global 2000 customers increased to 751[63] - The company estimates its Total Addressable Market (TAM) has more than doubled[38] AI Data Cloud - 40% of customers have at least one stable edge in data sharing[85] - Marketplace listings grew by 21% year-over-year to 3,400[85] Fiscal Year 2026 Guidance - The company projects product revenue of $4.395 billion for FY26[88] - The company projects Non-GAAP operating margin of 9% for FY26[88]

Another enterprise software name, Snowflake earnings are out. Julia Borston has those numbers. Julia, >> John, Snowflake beating on the top and bottom line, reporting adjusted earnings per share of 35 cents versus the 27 cents estimated revenues of 1.14% billion ahead of estimates of 1.09% billion.Product revenue also coming in ahead of expect ahead of expectations. Non-GAAP operating margin 11% versus the street account estimate of 8.2%. The company also guiding to thirdarter product revenue just ahead of ...