Snowflake shares surged 22% in extended trading after the company reported strong second-quarter results and raised its guidance, including its outlook for third-quarter and full-year product revenue. Product revenue is the metric Snowflake itself highlights as its core top-line measure, since it reflects consumption of the company's data platform rather than professional services.

The company attributed its performance during the quarter to growth in its artificial intelligence coding agent, "CoCo." The AI coding agent now has 9,100 accounts, having added more than 2,000 new accounts during the quarter. The adoption figures land amid a broader wave of enterprise demand for AI coding assistants, a category where vendors across the software industry have been racing to ship agentic tools that can write and debug code.

Snowflake, which provides a cloud-based data platform (NYSE-listed under the ticker SNOW), has been investing heavily in AI capabilities as it seeks to broaden its product portfolio beyond its core data warehousing business. That push comes as competition in the cloud data platform market intensifies, with privately held Databricks among its most prominent rivals also leaning heavily into AI features.

The company's raised product revenue guidance for the current quarter and the full fiscal year accompanied the release of the Q2 results, contributing to the sharp after-hours rally in the stock. The scale of the after-hours move also illustrates how sensitive software stocks have become to AI-related adoption signals in earnings reports.