Snowflake Soars 23% as AI-Fueled Guidance Raise Tops Estimates, Oracle Advances 3%, Cloudflare Edges Higher

Snowflake (NYSE:SNOW | SNOW Price Prediction) stock is soaring 23% to $377.11 in Thursday trading after the cloud data platform delivered a much stronger-than-expected fiscal second quarter and raised its full-year outlook. Oracle (NYSE:ORCL) stock is advancing 3% to $150.26, while Cloudflare (NYSE:NET) stock is edging higher 2% to $276.90, adding to a broader positive reaction across several cloud and artificial intelligence names.

Snowflake’s second-quarter revenue climbed 35% year over year to $1.55 billion, topping the $1.48 billion analyst estimate, while adjusted earnings reached 62 cents per share versus expectations of 45 cents. Snowflake also raised its fiscal 2027 product-revenue forecast to $6.07 billion from $5.84 billion, representing 36% growth and a significant acceleration from its previous outlook.

AI Is Accelerating Snowflake’s Growth

Snowflake’s product revenue increased 37% to $1.49 billion, marking the company’s third consecutive quarter of accelerating product-revenue growth. Snowflake’s remaining performance obligations also reached $9 billion, up 30% year over year, while the company added 692 net new customers during the quarter.

Snowflake’s AI products are becoming a more important part of that growth story. Snowflake’s CoCo coding agent surpassed 9,100 accounts and CoWork reached 5,800 accounts, giving Snowflake additional ways to monetize the data infrastructure that businesses need to support AI applications.

Oracle And Cloudflare Offer Different Comparisons

Oracle stock is advancing 3% to $150.26 as investors continue to focus on Oracle’s rapidly expanding role in AI cloud infrastructure. Oracle’s business is much larger and more capital-intensive than Snowflake’s, but both companies could benefit as enterprises spend more on the infrastructure and software required to build and operate AI workloads.

Cloudflare stock is also edging higher 2% to $276.90, although Cloudflare has a different exposure to the cloud market through networking, security and application services. CoreWeave (NASDAQ:CRWV) stock is instead falling 0.8% to $80.29, providing a useful reminder that enthusiasm for AI infrastructure doesn’t lift every cloud-related name at the same time.

The WisdomTree Cloud Computing Fund (NASDAQ:WCLD) is up 3% to $42.30, offering a broader benchmark for the cloud software group. WCLD’s advance alongside Snowflake stock suggests the earnings reaction is helping sentiment beyond SNOW, although Snowflake’s 23% move is considerably stronger than the ETF’s gain.

Snowflake’s Guidance Raises the Stakes

Snowflake’s new fiscal 2027 forecast calls for third-quarter product revenue of $1.588 billion to $1.593 billion, representing 37% to 38% year-over-year growth. Snowflake also raised its full-year non-GAAP operating-margin outlook to 14.5% from 13.5%, suggesting management expects to combine faster growth with improving operating leverage.

The bullish case is therefore becoming easier to articulate: Snowflake is showing accelerating growth at the same time that AI adoption is creating new workloads for its platform. Snowflake could have additional upside if CoCo, CoWork and other AI products encourage customers to consume more data and services through the company’s platform.

Valuation Remains the Biggest Question

Snowflake’s 23% Thursday rally also raises the bar for future results. Snowflake’s stock had already appreciated substantially this year, and the latest surge means investors are now paying a higher price for continued acceleration in revenue, AI adoption and profitability.

The bear case is that expectations could become difficult to exceed after such a powerful move. Snowflake also remains unprofitable on a GAAP basis, with the company reporting a second-quarter net loss of $191.7 million, while stock-based compensation remains a significant expense.

Snowflake stock could continue benefiting if AI workloads translate into sustained consumption growth and the company’s raised guidance proves conservative. Investors can watch for whether Snowflake maintains its accelerating product-revenue growth while expanding margins, particularly as the stock moves into a much more demanding valuation range.

Snowflake has delivered the kind of earnings report that can reset expectations for a growth stock, and the combination of AI momentum and higher guidance gives the bulls a strong argument. Investors who want exposure to Snowflake’s AI and cloud opportunity should consider keeping their SNOW position sizes moderate, however, because a 23% single-day rally leaves considerably less room for disappointing results or a slowdown in growth.

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