The numbers reported on May 27 were not just better than expected. They represented the kind of acceleration that changes how analysts and investors think about what a business is actually capable of. Product revenue came in at $1.33 billion, up 34% from the same period a year earlier, stepping up meaningfully from 30% growth in the prior quarter and 20% growth in the equivalent quarter twelve months ago. The beat against Snowflake’s own guidance range was roughly $69 million, an unusually wide gap for a company of this size and one that signals genuine demand surprise rather than conservative guidance management.
The reaction from Wall Street arrived quickly. HSBC upgraded the stock, with analyst Stephen Bersey describing the quarter as evidence that Snowflake’s AI monetization opportunity is now producing real results rather than roadmap promises. Truist Securities and Freedom Broker both lifted their price targets to $275 and $300, respectively, citing momentum in AI workloads and stronger-than-expected platform adoption. The full-year product revenue guidance also increased, now pointing to $5.84 billion, implying 31% growth for the fiscal year.
One Product, One Quarter, One Very Different Conversation
One product drove an outsized share of what happened in the quarter, and the company’s own finance team said so directly on the earnings call.
Cortex Code, known internally as CoCo, is an AI-powered code generation and developer assistant tool that Snowflake made generally available on February 5, 2026, the literal opening day of the quarter. By the time earnings were reported, more than 7,100 accounts had adopted it. Brian Robins went further than most CFOs would, naming CoCo directly as the primary force behind why ...
