Snowflake (SNOW) Surges 20.27% on Q2 Earnings Outperformance, AI Momentum

Snowflake Inc. (SNOW) surged 20.27% in a single session, marking its second consecutive day of gains with a cumulative 24% rise. The stock hit an intraday high of 24.75% above its prior level, reaching its highest point since August 2025. This rally reflects strong investor confidence in the company’s strategic positioning amid the AI-driven enterprise data transformation.

Driving the momentum were Snowflake’s Q2 2026 results, which outperformed expectations across key metrics. Revenue hit $1.1 billion, up 32% year-over-year, while adjusted EPS climbed 94% to $0.35. The company’s remaining performance obligation (RPO) grew 33% to $6.9 billion, signaling robust future revenue visibility. Analysts highlighted Snowflake’s ability to leverage its AI Data Cloud platform, which simplifies access to structured and unstructured data, as a critical differentiator in the evolving tech landscape.

Leadership emphasized AI as a core focus, with CEO Sridhar Ramaswamy underscoring the platform’s role in enabling enterprises to derive actionable insights. The company’s net revenue retention rate (NRR) rebounded to 125%, reversing a 13-quarter decline, while customer growth accelerated, particularly among high-spending clients. These metrics reinforced Snowflake’s competitive edge in a market where data modernization and AI integration are prioritized by large enterprises.

Analysts from William Blair and Citi noted Snowflake’s technical advantages, including its capacity to handle diverse data types and support AI workflows. The firm’s recent innovations, such as Snowflake Intelligence, position it to capture a larger share of the AI infrastructure market. With full-year 2026 revenue guidance raised to $4.4 billion, the company demonstrated confidence in sustained demand, aligning with broader industry tailwinds as global investment in AI-driven automation intensifies.

While the stock’s valuation remains elevated, its growth trajectory and expanding use cases in AI justify the optimism. Institutional and retail investors alike view Snowflake as a high-growth play, with its year-to-date gains and 12-month performance outpacing many peers. As enterprises continue to prioritize data-driven innovation, Snowflake’s leadership in enterprise data modernization solidifies its role as a pivotal player in the AI ecosystem.