After a 17% Surge, Is Snowflake Stock Still a Buy as Revenue Growth Accelerates?

Snowflake reported fiscal Q2 earnings that drove shares up 16.6%, with total revenue climbing 35% year-over-year to $1.55 billion. Product revenue accelerated for the third consecutive quarter, marking a reversal from prior deceleration trends that had concerned investors.

The company is positioning itself as a core platform for enterprise agentic AI deployment, a narrative that resonated with the market in the immediate aftermath of the print. The revenue beat and sequential acceleration in product growth provided tangible evidence of demand stabilization in the data cloud segment.

Valuation now sits at 20 times forward price-to-sales, placing SNOW at the high end of its historical trading range. The multiple expansion following the post-earnings surge suggests limited room for further re-rating without continued execution on both revenue growth and margin improvement.

The 35% top-line growth rate marks a material inflection point after several quarters of slowing momentum, but sustainability of that pace remains unproven heading into the second half of the fiscal year.