Snowflake stock skyrockets on AI-driven Q2 revenue jump

What happened: Snowflake ( SNOW ) stock surged as much as 20% in premarket trading on Thursday.

What's behind the move: The cloud-based software company posted a blowout second quarter with revenue surging 35% to $1.55 billion.

Snowflake CEO Sridhar Ramaswamy noted that customers using AI on Snowflake consume more across the data platform, creating a structural multiplier for the business.

"Together, these dynamics show how the agentic enterprise has created a powerful flywheel across our business, and that flywheel is accelerating," he said during the company's earnings call on Wednesday afternoon.

Snowflake reported adjusted earnings per share of $0.62 for its fiscal 2027 second quarter.

What else you need to know: Snowflake has been benefiting from companies adopting AI. Its customers are not only storing their data on the platform but also using it to power their artificial intelligence projects.

During the earnings call, management noted that AI products accounted for roughly half of the acceleration in growth this quarter. Tools such as Cortex, an AI coding assistant, and enterprise chatbot CoWork saw rapid customer adoption.

Year to date, Snowflake stock is up more than 40%.

Ines Ferre is a senior business reporter for Yahoo Finance.