Snowflake Stock Rockets 22% as AI Coding Tool Fuels Blowout Quarter

Snowflake investors got the kind of quarter that makes a stock chart go vertical. Shares jumped 22% in after-hours trading Wednesday and kept climbing the next day, after the cloud data company blew past Wall Street's numbers and raised its outlook for the rest of the year.

The fiscal second-quarter results, released September 2, showed adjusted earnings of 62 cents a share against a 45-cent estimate. Revenue came in at $1.55 billion, ahead of the $1.48 billion analysts expected, up 35% from a year earlier, as CNBC reported this week.

The bigger story wasn't just the beat. It was where the growth came from. Snowflake's AI coding agent, called CoCo, now has more than 9,100 customer accounts, an increase of over 2,000 in a single quarter. That's a business line that barely existed a year ago suddenly pulling real weight.

Management didn't stop at reporting a good quarter — they raised the bar for the rest of the year. Full-year product revenue guidance moved up to $6.07 billion from $5.84 billion in May, and the projected adjusted operating margin climbed to 14.5% from 13.5%.

Context matters here. Snowflake has spent years being the company that everyone agreed had great technology but couldn't quite prove it could monetize AI the way the market wanted. This quarter is the clearest signal yet that the AI story is converting into actual paying customers, not just roadmap slides.

Snowflake's AI coding agent CoCo added more than 2,000 customer accounts in a single quarter, pushing its user base past 9,100.

Wall Street noticed fast. Monness Crespi & Hardt raised its price target from $380 to $450 and kept a Buy rating, implying more than 46% upside from where the stock traded before the jump, according to a MarketBeat research note. DA Davidson made an even bigger move, lifting its target from $300 to $450 the same week.

Those aren't isolated calls. The stock now carries a "Moderate Buy" consensus from 40 covering analysts — 34 rate it a Buy, five say Hold, and just one has it at Sell. The average price target sits at $348.62, though that number is likely stale given how fast targets are being revised upward following the print.

For retail investors, the setup here is a company still losing money on a GAAP basis — net loss of $191.7 million this quarter, though narrower than the $297.9 million loss a year ago — trading at a premium multiple because the market believes the AI story is real and accelerating.

That's also the risk. Insiders sold $321.7 million worth of Snowflake stock over the past three months, and short interest remains elevated. Negative net margins and negative return on equity aren't disqualifying for a growth stock, but they mean any stumble in AI monetization could hit the shares hard and fast.

Zoom out and the stock's run this year has been remarkable on its own. Snowflake entered Wednesday's report already up nearly 50% for 2026, roughly four times the S&P 500's gain over the same stretch. A move like that raises the bar for what "good news" needs to look like just to keep the rally intact.

If you're already holding SNOW, this quarter validates staying in. The Q3 product revenue guide of $1.59 billion is above the $1.50 billion analysts were modeling, which suggests momentum isn't a one-quarter fluke tied to a single big customer win.

New money is trickier. The stock has run hard, and chasing it right after a 20%-plus pop rarely ends well for individual investors buying at the top of a spike. A better entry might come on a pullback toward the 50-day moving average, which sat near $293 before the earnings jump — a level that could offer a more reasonable risk-reward setup.

Watch the next print for whether CoCo's account growth keeps compounding — that's the number that will tell you if this is a durable AI business or a hype-fueled beat that fades once the novelty wears off. For now, Snowflake earned its pop, and the analyst community is backing that up with real dollar figures, not just enthusiasm.