Snowflake reported Q2 FY27 revenue of $1.55 billion, up 35% year-over-year, driven by accelerating AI product adoption. Despite beating earnings estimates with a non-GAAP EPS of $0.62, management revealed a trimmed product gross margin guidance of 74%, down from 75%, due to higher costs from AI offerings. CEO Sridhar Ramaswamy highlighted rapid customer growth and platform usage fueled by AI, but CFO Brian Robbins noted AI products have lower margins than the core platform. Investors will watch if core platform growth can offset margin pressure as Snowflake guides for continued strong revenue and improved operating margins in Q3.
Snowflake's revenue growth accelerated to $1.49 billion last quarter, up 37%, with strong analyst buy ratings and rising price targets suggesting 51.5% upside. The company aims for $450 per share in 2027, which would require the market to value it at...
Datadog reported strong Q3 earnings with revenue up 35% year-over-year and earnings per share beating estimates. However, its cautious revenue guidance for Q4, showing little growth, caused shares to fall 11% in early trading. The company highlighted...
