Snowflake Product Revenue Growth Accelerates on AI Momentum, RBC Says

12:19 PM EDT, 09/03/2026 (MT Newswires) -- Snowflake (SNOW) delivered strong fiscal Q2 results, with product revenue growth accelerating as the AI flywheel gains momentum at scale, RBC Capital Markets said Thursday. Product revenue growth accelerated to 37% in fiscal Q2 from 34% in fiscal Q1 and 30% in fiscal Q4, while fiscal 2027 product revenue growth guidance was raised to 36% from 31%, according to the note. Results continue to benefit from AI tailwinds driving core platform value and AI products, as early adoption remains impressive. This is expanding the total addressable market and the range of buying personas. AI accounted for approximately half of the revenue beat in fiscal Q2, with AI-powered coding and workflow agent CoCo exceeding 9,100 accounts after adding over 2,000 in the quarter, while migration acceleration, Notebooks, app deployment and AI functions were meaningful contributors to the other half, the note added. RBC kept an outperform rating on Snowflake and raised its price target to $440 from $372. Shares of Snowflake rose more than 20% in Thursday afternoon trading. Price: 367.72, Change: +61.88, Percent Change: +20.23