Snowflake is scheduled to report second-quarter fiscal 2027 results (quarter ended July 31, 2026) after the U.S. market close on Wednesday, September 2, 2026, followed by a conference call. Investors will be watching closely for evidence that the AI-driven acceleration seen in Q1 is sustaining—and ideally broadening—across the AI Data Cloud platform.
Consensus expectations point to total revenue near $1.48 billion (approximately 30% year-over-year growth) and non-GAAP earnings of roughly $0.45 per share. Management’s own guidance calls for product revenue between $1.415 billion and $1.420 billion, implying about 30% growth. Key metrics under the microscope include product revenue growth, remaining performance obligations (RPO), net revenue retention (NRR), customer metrics, and any color on AI product contribution from offerings such as CoCo and Cortex Agents.
This preview examines the setup heading into the print, the role of AI workloads as the primary growth driver, comparisons with recent quarters, analyst sentiment, competitive context, and what the results may signal for the balance of fiscal 2027.
Key Metrics to Watch
Primary Financial Indicators
- Product revenue: Guided $1.415–$1.420 billion (~30% YoY). Consensus sits near or slightly above this range.
- Total revenue: Expected around $1.48 billion.
- Non-GAAP EPS: Consensus approximately $0.45.
- Net revenue retention (NRR): Watched for stability or further improvement from the 126% reported in Q1.
- Remaining performance obligations (RPO): Q1 stood at $9.21 billion (+38% YoY); sequential and year-over-year trends will indicate pipeline health.
- Customers > $1 million TTM product revenue: Q1 reached 779; continued expansion is a key adoption signal.
- Operating margin: Q2 non-GAAP operating margin guided at 12.5%; full-year raised to 13.5% after Q1.
Any commentary on AI-related consumption, CoCo adoption, Cortex usage, or agentic workloads will receive outsized attention.
Why AI Workloads and Agentic Products Are Expected to Drive Growth
In Q1 FY2027, Snowflake delivered product revenue of $1.33 billion (+34% YoY) and total revenue of $1.39 billion (+33% YoY), with management explicitly citing strength in both the core data platform and AI capabilities, including CoCo (Cortex Code) and Snowflake Intelligence (now evolving under the CoWork branding). The company raised full-year product revenue guidance to $5.84 billion (31% growth).
Investors expect the same dual engine—core platform consumption accelerated by AI workloads, plus direct contribution from first-party AI products—to power Q2. Agentic tools that help developers and business users work more productively on governed data tend to increase overall platform usage, creating a virtuous cycle. Commentary on whether this dynamic is broadening across more customers and use cases will be critical.
Comparisons to the Previous Two Quarters
Q1 FY2027 marked an acceleration: product revenue growth of 34% followed stronger sequential dollar growth and an uptick in NRR to 126%. Q4 FY2026 had shown solid but more moderate momentum. The Q2 print will reveal whether the Q1 inflection is sustainable at the guided ~30% growth rate or whether sequential trends and AI contribution are even stronger than expected.
RPO growth of 38% in Q1 provided forward visibility; investors will look for continued backlog expansion as confirmation that large deals and multi-year commitments remain healthy.
Analyst Expectations and Price Targets
Wall Street consensus sits at roughly $1.48 billion in revenue and $0.45 non-GAAP EPS. Several analysts have raised price targets ahead of the report, citing ongoing enterprise cloud migration, healthy AI project activity, and adoption of products such as CoCo. Average price targets have clustered in the mid-to-high $300s in recent updates, with a Strong Buy consensus from many covering firms.
The stock has shown significant volatility around recent earnings, and options markets have priced in meaningful potential moves. Valuation remains elevated relative to traditional software peers, leaving limited room for disappointment on either growth or forward guidance.
Competitive Context
Snowflake continues to compete with Databricks and other data-AI platforms for enterprise workloads. Differentiation increasingly rests on the combination of a governed data foundation, native AI functions and agents, and the ability to support both analytical and agentic use cases inside a single platform. Commentary on win rates, competitive displacements, or the contribution of AI features versus core consumption will help frame relative positioning.
Partnerships (including major cloud commitments) and Marketplace momentum also factor into the longer-term competitive narrative.
Implications for Investors and Enterprise Leaders
For Investors
- A clean beat-and-raise or strong AI commentary could reinforce the re-acceleration thesis.
- Stability or improvement in NRR and RPO would support confidence in multi-year growth.
- Margin progress and free-cash-flow trends remain important for the quality of growth.
- Guidance for the remainder of FY2027 will be scrutinized for any change in tone on AI contribution or macro sensitivity.
For Enterprise Leaders
- Results and commentary offer a real-time view of how peers are adopting AI Data Cloud capabilities.
- Evidence of broad CoCo or agentic adoption may influence internal prioritization of similar tools.
- Insights into consumption patterns can inform capacity planning and AI budget allocation.
Actionable Insights
- Focus on product revenue growth rate, NRR trend, and any quantified AI contribution.
- Listen for color on CoCo usage, Cortex Agents, and whether AI is primarily accelerating core workloads or generating standalone revenue.
- Track large-customer metrics and RPO composition for signals of durable demand.
- Compare sequential trends against the Q1 inflection to assess sustainability.
- Evaluate forward guidance and margin commentary for insight into operating leverage as AI scales.
What the Results Will Signal for the Rest of Fiscal 2027
A solid Q2 that meets or exceeds the guided 30% product revenue growth, with stable-to-improving NRR and constructive AI commentary, would support management’s raised full-year outlook of 31% product revenue growth. It would also reinforce the narrative that Snowflake is successfully transitioning from a pure data platform to the control plane for the agentic enterprise.
Conversely, any deceleration in core consumption, softer AI metrics, or cautious guidance could raise questions about the durability of the recent acceleration. Given the elevated valuation, the market is likely to react strongly to both the numbers and the qualitative discussion of AI momentum.
Conclusion
Snowflake’s Q2 FY2027 earnings on September 2 arrive at a pivotal moment. After a strong Q1 that featured accelerated growth, rising NRR, and explicit AI tailwinds, investors will be looking for confirmation that the AI Data Cloud strategy is translating into sustained, high-quality expansion. Product revenue growth near 30%, healthy backlog and retention metrics, and clear evidence of CoCo and agentic adoption will be the primary yardsticks.
For both investors and enterprise leaders, the report offers a timely window into how one of the leading data platforms is monetizing the shift toward AI and agentic workloads. The numbers—and the narrative that accompanies them—will help shape expectations for the balance of fiscal 2027 and beyond.