SnowflakeSNOW shares have rallied 16.6% since it reported second-quarter fiscal 2027 results on Sept. 2, 2026. The uptick can be attributed to the company's strong product revenue growth and accelerating enterprise adoption of its newer artificial intelligence products.

Click here to check the details of SNOW's second-quarter fiscal 2027 results.

Snowflake shares have surged 62.5% year to date, outperforming the broader Zacks Computer & Technology sector's 16% gain and the Internet Software industry's 2.4% decline.

The company's shares have also outperformed its peers, including major players like OracleORCL, AlphabetGOOGL and AmazonAMZN, which are also expanding their footprint in the AI space. While Oracle shares have plunged 21%, Alphabet and Amazon shares have gained 9.4% and 12.2%, respectively, in the year-to-date period.

SNOW Stock Performance

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The outperformance can be attributed to SNOW's strong adoption and increasing usage of its platform, as reflected by the net revenue retention rate of 126% in the second quarter of fiscal 2027.

SNOW Benefits From Strong Enterprise AI Push

Snowflake is benefiting from a strong enterprise AI push as organizations increasingly use its AI Data Cloud to modernize data estates, deploy agents and automate business workflows. This momentum helped product revenues rise 37% year over year to $1.49 billion in the second fiscal quarter, accounting for 96% of total revenues and marking another quarter of accelerating growth. 

Enterprise expansion remains another key catalyst. In the second quarter of fiscal 2027, SNOW had 14,554 total customers after adding 692 net new customers, a 32% year-over-year increase in net additions. The company added 14 Forbes Global 2000 customers, taking that total to 829. Large-customer momentum remained strong, with 828 customers generating more than $1 million in trailing 12-month product revenues, up 27% year over year. Another 65 customers exceeded $10 million in trailing product revenues.

The adoption of Snowflake's AI offerings remains noteworthy. In the second quarter of fiscal 2027, CoCo surpassed 9,100 accounts after adding more than 2,000 during the quarter, while CoWork expanded to 5,800 accounts, up nearly 11% sequentially. Customers including 1Password and Indeed are deploying these solutions to accelerate data and AI initiatives.

SNOW Benefits From Expanding Portfolio

Snowflake's expanding AI portfolio has been noteworthy.  The company has rapidly broadened its suite of AI-powered products, including CoCo and CoWork, which are seeing strong adoption across a diverse customer base. The company launched more than 330 generally available product capabilities during the first half, including Cortex Sense and Cortex AI Gateway, strengthening its ability to offer governed AI, model choice and agentic workflows.

Further strengthening its AI strategy, in August 2026, Snowflake announced dynamic model routing across Cortex AI Gateway and its flagship AI products, enabling enterprises to balance AI quality and costs by automatically selecting the most suitable model for each task. The company also expanded access to leading open models, strengthening its AI capabilities and helping customers improve the efficiency of their intelligence. 

Strong AI demand is improving Snowflake's financial outlook. For fiscal 2027, the company raised product revenue guidance to $6.07 billion, implying 36% year-over-year growth compared with its previous outlook of $5.84 billion and 31% growth. Fiscal third-quarter product revenues are expected to be between $1.588 billion and $1.593 billion, indicating 37-38% growth.