Key Highlights
- Snowflake surged 24% following outstanding Q2 performance and optimistic 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 climbed 18% following 17.8% year-over-year revenue growth
- Broadcom fell 3.6% amid data center financing worries and news of Google’s partnership with Marvell
Thursday’s trading session crowned Snowflake as the standout performer. The cloud data warehousing specialist delivered impressive fiscal Q2 metrics, reporting product revenue growth of 37% year over year, reaching $1.49 billion. The stock rallied 24% following the announcement.
Management also provided encouraging forward-looking projections. For the third quarter, Snowflake anticipates product revenue between $1.588 billion and $1.593 billion, significantly exceeding Wall Street’s $1.51 billion estimate. For the complete fiscal year 2027, the company forecasts product revenue of $6.07 billion, representing 31% year-over-year growth.
Chief Executive Sridhar Ramaswamy informed Barron’s that the company is positioned to achieve profitability by next year. Snowflake emphasized that growing AI implementation is generating fresh workloads and driving increased platform utilization.
NetApp Shares Decline Despite Achieving Record Sales
NetApp experienced contrasting market reaction. The data infrastructure provider announced record first-quarter revenue of $2.03 billion, representing 30% year-over-year expansion and significantly surpassing the $1.84 billion analyst consensus. Adjusted gross margin reached 70.6%, exceeding projections.
However, free cash flow contracted 35% year over year to $401 million from $620 million. This deterioration dampened investor confidence, sending shares down 9%.
NetApp increased its full-year 2027 revenue projection to a range of $7.98 billion to $8.23 billion and elevated its adjusted earnings per share forecast. The organization continues advancing its AI infrastructure capabilities through the DataPelago acquisition.
Hewlett Packard Enterprise and Broadcom Experience Weakness
Hewlett Packard Enterprise delivered second-quarter results exceeding analyst estimates, with revenue advancing 34% year over year to $12.21 billion. Networking segment revenue jumped 75% while Cloud and AI revenue increased 25.4%. The company elevated its full-year adjusted earnings per share guidance.
Nevertheless, shares retreated 5%. The stock had already appreciated 116% year-to-date, potentially creating elevated expectations among market participants.
Broadcom declined 3.6% in premarket activity. The semiconductor manufacturer delivered respectable third-quarter numbers but couldn’t alleviate investor apprehension regarding data center financing challenges. Market participants also reacted to reports that key client Google had established a chip design agreement with competitor Marvell.
ChargePoint emerged as another Thursday winner. The electric vehicle charging infrastructure provider exceeded second-quarter expectations, posting 17.8% year-over-year revenue expansion. Networked charging systems revenue advanced 25% to $62.9 million. Non-GAAP gross margin strengthened to 38% from the prior year’s 33%.
ChargePoint’s adjusted EBITDA loss improved substantially to $4.8 million from $22.1 million. Looking ahead to the third quarter, management anticipates revenue ranging from $105 million to $115 million, approximately aligned with analyst projections.
Equity 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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