Snowflake's stock jumped in premarket trading.
Shares in Snowflake surged 23% in premarket trading on Thursday after the cloud-based data analytics company posted results that surpassed analysts' estimates in the second quarter and raised its guidance.
Analysts at Citigroup, led by Tyler Radke, called the three-month period ended July 31 "exceptional." They said the company's (SNOW) consistent beat of upward of 5% on revenue, with growth expected to rise to 37% year-on-year, "proves that rapid AI adoption is driving both direct monetization but also structurally lifting core platform consumption."
"We expect Snowflake to continue to grow revenue at a rapid scale," JPMorgan analysts, led by Samik Chatterjee, wrote in a Wednesday note. "We believe the combination of alignment to secular trends like data growth and digital transformation, very rapid revenue growth at scale, and a solid, efficient business model makes Snowflake an exceptional asset among software companies."
RBC Capital Markets analysts, headed by Matthew Hedberg, said they remain bullish on Snowflake as they see the company continuing to benefit from the AI revolution as early adoption of the technology remains strong.
-Nora Redmond
