On Wednesday, Snowflake Inc. (NYSE:SNOW) shares surged 23.14% in after-hours trading after the AI data cloud company delivered a stronger-than-expected fiscal second-quarter report and raised its full-year outlook.

Jim Cramer, Brad Gerstner React

Following the earnings, Jim Cramer posted on X, "Snowflake a thing of beauty."

Altimeter Capital founder Brad Gerstner highlighted Snowflake’s transformation, noting that when SNOW last traded around $375 in 2021, it had about $1 billion in revenue.

"Today it’s $ 6 B with accelerating 37% revenue growth & expanding operating margins driven by AI use cases like CoCo & Cowork.  Congrats," he wrote.

Futurum Group CEO Daniel Newman added to the excitement with a blunt message: "RIP SaaSpocalypse."

The remark reflects a growing debate over whether AI agents could disrupt traditional software businesses. Snowflake’s latest results instead suggest AI may be creating a new growth opportunity for data and software platforms.

Read Also: Snowflake Vs. Databricks: Can SNOW Stock Hold Its Ground Against A Rising Tech Giant?

Snowflake Earnings Beat Wall Street Estimates

Snowflake reported $1.55 billion in second-quarter revenue, ahead of analysts’ $1.48 billion estimate. Adjusted earnings came in at 62 cents per share, topping expectations of 45 cents.

Product revenue, Snowflake’s key sales metric, climbed 37% to $1.49 billion.

AI Growth Fuels Snowflake’s Bullish Outlook

Snowflake raised its fiscal 2027 product revenue forecast to $6.07 billion. The company now expects product revenue growth of 36% for the full year.

For the fiscal third quarter, Snowflake expects product revenue between $1.588 billion and $1.593 billion, representing 37.5% year-over-year growth. It also raised its full-year adjusted operating margin forecast to 14.5% from 13.5%.

CEO Sridhar Ramaswamy said AI is creating a "flywheel effect" across the business, with Snowflake’s CoWork and CoCo products driving adoption and new workloads.

Price Action: Snowflake shares closed at $305.84 on Wednesday, but surged 23.14% to $376.60 in after-hours trading, according to Benzinga Pro.

According to Benzinga Edge Stock Rankings, Snowflake ranks in the 94th percentile for Momentum, with the stock posting gains across the short-, medium- and long-term periods.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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