Shares of Snowflake Inc (NYSE:SNOW) declined in early trading on Thursday, despite the company reporting better-than-expected results for its fiscal second quarter.

The results came amid an exciting earnings season.

Here are some key analyst takeaways from the earnings release.

Check out other analyst stock ratings.

Piper Sandler: “Product growth moderated for the seventh straight quarter to 37% y/y from triple-digit growth peak of 110% in October 2021,” Bracelin wrote in a note.

“We are encouraged by healthy July contract signings that, if sustained, could result in a potential 2024 growth reacceleration after two years of moderation,” the analyst said. “Product innovation coupled with Gen AI interest continues to be a bright spot."

Mizuho Securities: Snowflake reported “solid” results for the fiscal second quarter, with better-than-expected product revenue growth of 37% year-on-year, Moskowitz said.

While product revenue guidance for the fiscal third quarter was broadly in-line with expectations, management “signaled stabilization in new bookings,” the analyst mentioned.

“While an increased focus on cost optimization by macro-sensitive customers continues to weigh on the business near-term, we're confident that SNOW's competitive positioning remains strong,” he added.

Morgan Stanley: “After several quarters of declining growth expectations, holding the FY24 guide and reassuring mgmt commentary should soothe investor concerns,” Weiss wrote in a note.

“Given SNOW's strong secular positioning, we remain confident the recovery is on the come,” he added.

Goldman Sachs: Following three quarters of downward revisions, Rangan says the reiteration of full-year product revenue guidance reflects expectations of “stabilizing consumption trends and improved bookings activity in June-Aug."

“Given the company’s strong competitive positioning, we continue to view Snowflake as well positioned to capitalize on a generational shift of data and analytics to the cloud, with strong secular tailwinds including cloud adoption, big data, AI/ML, and secure data sharing which we expect will drive durable growth for the foreseeable future,” he added.

Needham: Management's decision to maintain the full-year guidance signals that “consumption trends are stabilizing and the outlook screens conservatively,” Cikos said.

“Furthermore, the company alluded to customers re-engaging and more positive Bookings trends,” the analyst wrote. “When combined with new product introductions, these data points align for an improved set-up over the remainder of the year into FY25."

SNOW Price Action: Shares of Snowflake had declined by 2.22% to $152.25 at the time of publication Thursday.

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