Snowflake Posts $1.49B Product Revenue, 37% Growth in Q2 2027

Snowflake reported its fiscal Q2 2027 on September 2. Product revenue reached $1.49 billion, up 37% year over year. This marked the third consecutive quarter of accelerating growth according to SaaStr.

Revenue Growth and Sequential Adds

Product revenue growth moved from 30% in fiscal 2026 to 34% then 37%. Sequential product revenue adds rose from $68 million to $108 million to $158 million across three quarters. Snowflake raised its full-year product revenue guide from $5.84 billion to $6.07 billion. The implied full-year growth rate increased from 31% to 36%. Total RPO grew 30% while current RPO grew 42%.

AI Contribution to Growth

Roughly half the acceleration came from AI products including CoCo and CoWork. The other half came from those products increasing core platform consumption. CoCo surpassed 9,100 accounts after adding more than 2,000 in the quarter. CoWork reached 5,800 accounts. Total customer count stood at 14,554 with roughly 60% of the account base touching the coding agent. AI workloads run on the same consumption meter as core products.

Margin Guidance and NRR

Non-GAAP product gross margin came in at 74.7%, down from 76.4% a year earlier. The full-year guide was set at 74.0%. Operating margin guidance increased on the same call. NRR reached 126%. Forty-nine net new customers crossed $1 million in the quarter. One point of the full-year growth guide stems from the Observe acquisition. The guide implies Q3 product revenue of $1.588 billion to $1.593 billion and Q4 sequential add of about $63 million according to SaaStr.