Snowflake (SNOW) Stock Soars 16% After Q2 Earnings: Is It Still a Buy?

SNOW shares jumped 16% after the cloud data platform reported second-quarter adjusted earnings per share of $0.62, beating the $0.45 consensus estimate. Revenue hit $1.54 billion against expectations of $1.47 billion. The company raised its full-year product revenue guidance to $6.07 billion, implying 36% growth, citing accelerating adoption of AI workloads on its platform.

The rally brings valuation into focus. SNOW now trades at 15 times forward sales and 150 times forward earnings, multiples that sit well above industry averages. The premium reflects investor confidence in the AI-driven revenue acceleration, but leaves limited room for execution stumbles. The revised guidance suggests management sees sustained demand momentum, particularly from enterprises deploying AI applications that require scalable data infrastructure.