# Snowflake Coco AI agent drives 37% revenue surge
_Snowflake's Coco drove half the Q2 beat on $1.49B product revenue, up 37%, with a consumption model Ramaswamy says makes data jobs 5-10x faster._
**Published:** 2026-09-04
**Source:** https://www.startuphub.ai/ai-news/public-companies/2026/snowflake-coco-ai-agent-drives-37-revenue-surge
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[Snowflake Coco AI agent](https://www.youtube.com/watch?v=kxeXFl1UbRY) is driving half of Snowflake's outperformance, CEO Sridhar Ramaswamy told [Bloomberg Technology](https://www.youtube.com/watch?v=kxeXFl1UbRY). Product revenue hit $1.49 billion, up 37% year on year.

The quarter also expanded operating margin by 400 basis points to 15%.

The full discussion can be found on **Bloomberg Technology**'s YouTube channel.

  
    

![](https://img.youtube.com/vi/kxeXFl1UbRY/maxresdefault.jpg)

    
      
        

      
    
  
  Snowflake CEO: AI Is Driving a ‘Profound’ Shift, from Bloomberg Technology
Snowflake raised full-year guidance by 5% to 36%, citing the AI flywheel as the reason.

## What is Coco?

Coco is a coding agent for data that comes included with Snowflake.

Ramaswamy said any job on Snowflake goes five to 10 times faster using Coco, and the company publishes benchmarks to back the claim.

## Why is Coco standing out?

Ramaswamy called it the easiest sell Snowflake has ever had, because it understands Snowflake internals better than off-the-shelf models and harnesses from foundation labs.

It is also sold as consumption rather than per user subscription, which he said makes it compelling for every data team.

## Where does adding 2,000 accounts show up in revenue?

The first order effect is AI revenue from token consumption for Coco.

The bigger second and third order effects are customers bringing more data onto Snowflake, optimizing and debugging pipelines, building interactive tables for dashboards, and deploying agents via Cowork to business users.

## How does Snowflake explain RPO coming in below consensus?

Ramaswamy said he would not put much emphasis on the figure.

Bigger renewals have been pushed by a quarter to later this year, he said, with RPO expected to increase by a lot in Q4. Revenue remains the leading indicator.

## How does Snowflake position against Databricks?

Snowflake pitches a cohesive, trusted, governed platform for enterprises' most valuable data, he said. Databricks' heritage is developer-centric with wide open code bases and data sprawl.

That enterprise footprint is what Snowflake is using to move upstream into sales transformation and supply chain optimization, a shift he said was unimaginable three years ago. See also [Databricks links retail planning to store execution](/ai-news/artificial-intelligence/2026/databricks-links-retail-planning-to-store-execution) for the competing approach.

## What can customers do today they could not do a year ago?

Ready access to data and reasoning on top of Snowflake, Ramaswamy said.

He pointed to Indeed rolling out Coco and Cowork to employees in over 60 countries and 28 languages, alongside customers like United Rentals, as the current frontier for AI and data.

Coco's bet is consumption that compounds, not seats that cap.
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Original analysis from [startuphub.ai](https://www.startuphub.ai), the #1 AI startup directory.