Key Highlights
- Snowflake surged 24% following exceptional Q2 performance and robust forward guidance
- NetApp declined 9% as free cash flow plummeted 35% despite achieving record revenue
- Hewlett Packard Enterprise slipped 5% despite surpassing Q2 projections
- ChargePoint rallied 18% as revenue grew 17.8% compared to the prior year
- Broadcom fell 3.6% amid data center financing worries and competitive pressures from Marvell’s Google partnership
Thursday’s trading session crowned Snowflake as the standout performer. The cloud-based data platform delivered impressive fiscal Q2 earnings, with product revenue climbing 37% year over year to reach $1.49 billion. The stellar results propelled shares upward by 24%.
Management provided optimistic forward-looking projections. Snowflake anticipates Q3 product revenue between $1.588 billion and $1.593 billion, significantly exceeding the Wall Street estimate of $1.51 billion. For the complete fiscal year 2027, the company forecasts product revenue reaching $6.07 billion, representing a 31% annual increase.
In an interview with Barron’s, CEO Sridhar Ramaswamy confirmed that Snowflake is progressing toward profitability next year. The organization emphasized growing AI adoption as a catalyst for expanded workloads and increased platform engagement.
NetApp Declines Despite Achieving Record Sales
NetApp experienced a contrasting outcome. The data storage provider announced record-breaking Q1 revenue of $2.03 billion, representing a 30% year-over-year increase and surpassing the $1.84 billion analyst consensus. Adjusted gross margin reached 70.6%, also exceeding projections.
However, free cash flow contracted 35% annually to $401 million, down from $620 million in the comparable period. This significant decrease dampened investor enthusiasm, resulting in a 9% share price decline.
NetApp increased its fiscal 2027 revenue forecast to a range of $7.98 billion to $8.23 billion and elevated its adjusted earnings per share projection. The firm continues expanding its AI infrastructure capabilities following the DataPelago acquisition.
Hewlett Packard Enterprise and Broadcom Experience Declines
Hewlett Packard Enterprise exceeded Q2 estimates, reporting revenue growth of 34% year over year to $12.21 billion. Networking revenue jumped 75% while Cloud and AI revenue increased 25.4%. Management raised its full-year adjusted earnings per share guidance.
Despite these positive results, shares declined 5%. The stock’s 116% year-to-date appreciation may have created elevated investor expectations.
Broadcom dropped 3.6% in premarket activity. While the semiconductor manufacturer delivered solid Q3 numbers, it couldn’t alleviate investor concerns regarding data center financing. Market participants also monitored news that key customer Google established a chip design partnership with competitor Marvell.
ChargePoint emerged as another Thursday winner. The EV charging infrastructure provider exceeded Q2 expectations, reporting revenue growth of 17.8% versus the previous year. Networked charging systems revenue advanced 25% to $62.9 million. Non-GAAP gross margin expanded to 38% from 33% in the year-ago quarter.
ChargePoint’s adjusted EBITDA loss improved dramatically to $4.8 million from $22.1 million. The company projects Q3 revenue ranging from $105 million to $115 million, approximately aligned with analyst estimates.
Stock index futures displayed mixed performance during Thursday’s premarket session as market participants weighed U.S.-Iran geopolitical developments against persistent interest rate uncertainties. Declining bond yields provided some relief to equity markets entering the regular trading session.
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