The company's AI-powered coding assistant is driving major sales momentum

Snowflake posted blowout earnings results for the July quarter on Wednesday.

Analysts are running out of superlatives to describe Snowflake's earnings results, deemed to be "outstanding" and "exceptional." And artificial intelligence is the driving force behind the company's momentum.

Specifically, Snowflake (SNOW) is benefiting from agentic AI, or the process by which AI tools can act autonomously on a user's behalf. Snowflake itself operates CoCo, an AI-powered coding agent formerly called Cortex Code. Snowflake CEO Sridhar Ramaswamy said on the earnings call that CoCo was among the "easiest sales that we have done to our customers."

Jefferies analyst Brent Thill wrote Wednesday that CoCo has become Snowflake's "killer capability," helping to drive better-than-expected product revenue that excited investors.

Snowflake's stock climbed 24% at the opening bell on Thursday, with Jefferies trading strategist Jeffrey Favuzza writing that "it's reasonable to make the case" that the company delivered the best earnings report within the software sector this quarter.

"An incredibly squeaky clean print to say the least," he wrote.

Another highlight was management's decision to boost its outlook on product revenue. The company raised its full-year product-revenue forecast to $6.07 billion from a previous outlook of $5.84 billion.

Management also indicated that CoCo users are consuming more of Snowflake's core platform, which reinforced Thill's view that "AI is additive rather than cannibalistic."

"We expect Snowflake to continue to grow revenue at a rapid scale," JPMorgan analysts, led by Samik Chatterjee, wrote in a Wednesday note.

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