SNOW's earnings beat, raised guidance, and margin strength drove a significant positive market reaction and increased investor confidence regarding its AI positioning.

Their EPS came in at 62 cents, beating the 45 cents forecast by 38%. Revenue 1.55 billion. This is also higher than forecast. An important metric, product revenue is 1.49 billion.

This is a 37% increase over last year and is also better than forecast. Net revenue retention rate is 126%. The remaining performance obligation stands at $9 billion. This is 30% more than last year.

They had 828 customers whose product revenue in the last 12 months exceeded $1 million. This is 27% more than last year. And their total number of Forbes Global 2000 subscribers is 829.

They also increased their product revenue target for the current fiscal year from 5.84 billion to 6.07 billion. This is also higher than consensus and indicates a growth of about 36%.

The operating margin target has been raised from 13.5% to 14.5% and their third- quarter product revenue forecast is now 1.588 to 1.593 billion. This would indicate annual growth of about 38%, which is better than expected.

But we are seeing a huge response. An unstable name. We're expecting a big change here , Alex, plus or minus 12%, but not 20%. Yes, no. And I'm actually surprised by this. You know, the last time I heard their earnings report, this stock was up 36.5%.

So, it's a tough task for Dell or HPE to follow. It's hard to keep up with such a big surprise, one milestone after another. And it's getting better in terms of its response in the post-market.

This is a company that, just by being in the software world, faces a lot of questions , right? All of these companies are looking for ways to incorporate AI into their operations, maintain margins, and grow at a very rapid pace.

Snowflake is one of the few that seems to have found that mix in its own software, and we know that some cybersecurity companies are under pressure today, but we know that the Street has invested heavily in those companies over the past few years because they are confident in them.

Snowflake's improved performance in the quarter after last quarter will give the Street more confidence in the software company that AI is not a huge risk factor, and the numbers are proof of that.

To me, the biggest question for all these software companies, beyond revenue and expenses, is margins. And the fact that they were able to exceed their margin targets and did well on margins this quarter is what matters. I think that's the main thing.

We see Snowflake up 22.7%.