Snowflake revenue growth hits 35.1% as losses narrow

Snowflake (SNOW) stock rose 59.3% from January 18 to October 15, 2026, outperforming the S&P 500's 12.5% gain over the same period. The price movement tracked three quarterly earnings reports, with buyers positioning for sustained sales growth driven by artificial intelligence usage on the company's data platform.

The company's revenue growth rate has accelerated in each quarter since January. Revenue increased 30.1% year-over-year in fiscal fourth quarter 2026, the period ending January 31. By fiscal second quarter 2027, that pace reached 35.1%. Product revenue, which comprises nearly all of Snowflake's sales, grew 37% in the latest quarter. During the September 2 earnings call, management stated that customers utilizing AI on Snowflake consume more across the data platform.

The largest single-day gains in the stock occurred immediately following earnings announcements. Shares jumped 37% on May 28, the day after Snowflake reported fiscal first quarter 2027 results. On the September 2 call, management announced it had raised its fiscal 2027 product revenue growth forecast by more than five percentage points to 36%. The stock gained 16.6% the following day.

While revenue growth has quickened, Snowflake remains unprofitable, though its losses are shrinking. The operating loss fell to 17.0% of revenue in fiscal second quarter 2027, down from 29.7% in fiscal second quarter 2026. Management indicated on the September 2 call that the company remains on track to achieve profitability under generally accepted accounting principles in fiscal fourth quarter 2028. However, management also noted that fast-growing AI workloads currently carry a lower margin, meaning Snowflake retains less of each dollar in sales associated with those specific workloads.

Because the company is still losing money, investors value Snowflake based on its sales rather than earnings. The firm lost $1.09 billion over the twelve months ending July 31, 2026, rendering its price-to-earnings multiple meaningless. The operating loss for that twelve-month period stood at 22.8% of revenue, the smallest figure recorded at any quarter end since fiscal second quarter 2021.

The next data point arrives with Snowflake's fiscal third quarter 2027 report, expected on or around December 1, 2026. Investors will focus on the operating margin in that report to determine if the trajectory toward profitability holds.