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Snowflake Q1 Earnings Top Estimates, Revenues Increase Y/Y, Shares Up
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Key Takeaways
SNOW beat Q1 FY2027 estimates as revenue rose 33% year over year to $1.39 billion.
Snowflake raised its FY2027 product revenue outlook to $5.84 billion, implying 31% growth.
SNOW highlighted AI momentum, AWS expansion and OpenAI and SAP partnership progress.
Snowflake (SNOW - Free Report) reported first-quarter fiscal 2027 non-GAAP earnings of 39 cents per share, which beat the Zacks Consensus Estimate by 21.88%. The company reported earnings of 24 cents per share in the year-ago quarter.
Revenues were $1.39 billion, up 33% year over year and beat the Zacks Consensus Estimate by 5.23%.
Snowflake shares have surged 34.88% in pre-market trading.
SNOW Top-line Details
SNOW’s fiscal first quarter was driven by consumption across its core platform, with product revenue representing the majority of results. Product revenues totaled $1.33 billion, which accounted for 96% of total revenues. Professional Services and other revenues were $56.6 million, which contributed 4% of total revenues, representing a 25.1% year-over-year increase.
Geographically, results remained concentrated in the Americas, which represented 78% of revenue, with EMEA and APJ contributing 16% and 6%, respectively. The steady regional mix suggests Snowflake is scaling internationally without materially changing its revenue concentration.
Snowflake’s AI-Led Momentum and Partnerships
Snowflake framed the quarter as an inflection point in its AI roadmap, citing accelerating adoption of first-party AI products alongside core platform demand. Management pointed to strong sequential product revenue dollar growth and emphasized the role of offerings such as Cortex Code and Snowflake Intelligence in broadening usage across the installed base.
The company also underscored ecosystem moves aimed at extending distribution and deepening enterprise relevance. It expanded collaboration with AWS through a new $6 billion multi-year agreement, highlighted ongoing work with OpenAI, and noted that capabilities from its SAP partnership reached general availability. Snowflake also signed a definitive agreement to acquire Natoma in May 2026 to strengthen secure connections for AI agents across tools and workflows.
SNOW's Customer Scale Supports Durable Expansion
SNOW ended the quarter with 13,912 total customers and added 616 net new customers, including 13 new Forbes Global 2000 customers. Large-customer depth continued to improve, with 779 customers above the $1 million trailing product revenue threshold, representing 29% year-over-year growth in that cohort.
Retention remained a key support for the consumption model. Net revenue retention rate was 126%, reflecting continued expansion from existing customers, even as usage patterns can vary quarter to quarter. Contracted demand also stayed healthy, with remaining performance obligations of $9.21 billion, up 38% from the year-ago period.
Snowflake’s Operating Details
The non-GAAP gross margin contracted 40 basis points (bps) year over year to 71.8%. Product gross margin was 75.1% in the reported quarter.
Research & development expenses, as a percentage of revenues, decreased 250 bps on a year-over-year basis to 20.4%. General & administrative expenses, as a percentage of revenues, were 5.5%, down 60 bps year over year. Sales and marketing expenses, as a percentage of revenues, contracted 40 bps on a year-over-year basis to 33.9%.
Operating margin expanded 300 bps on a year-over-year basis to 11.9%.
SNOW’s Balance Sheet & Cash Flow Details
The balance sheet remained liquid. As of April 30, 2026, Snowflake reported $2.08 billion in cash and cash equivalents and $870.3 million in short-term investments.
SNOW produced $243.2 million of net cash from operating activities in the quarter. Free cash flow was $232.8 million, and adjusted free cash flow was $265.5 million.
Snowflake Raises Full-Year Product Revenue Outlook
Snowflake expects second-quarter fiscal 2027 product revenues in the range of $1.415-$1.420 billion, implying 30% year-over-year growth, with a non-GAAP operating margin expected to be 12.5%.
For fiscal 2027, the company raised its product revenue outlook to $5.84 billion, representing 31% growth. Snowflake also lifted its full-year non-GAAP operating margin target to 13.5% and reiterated a 75% non-GAAP product gross margin assumption alongside a 23% non-GAAP adjusted free cash flow margin.
Shares of Applied Materials have surged 74.4% year to date. The Zacks Consensus Estimate for Applied Materials’ fiscal 2026 earnings is pegged at $12.02 per share, up 9 cents over the past seven days, indicating a 27.6% year-over-year surge.
Shares of Celestica have gained 21% year to date. The Zacks Consensus Estimate for Celestica’s 2026 earnings is pegged at $10.16 per share, up 13.6% over the past 30 days, indicating a year-over-year jump of 67.93%.
Amphenol shares have risen 3.8% year to date. The Zacks Consensus Estimate for APH’s 2026 earnings is pegged at $4.76 per share, up 10.9% over the past 30 days, indicating a year-over-year increase of 42.51%.
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Snowflake Q1 Earnings Top Estimates, Revenues Increase Y/Y, Shares Up
Key Takeaways
Snowflake (SNOW - Free Report) reported first-quarter fiscal 2027 non-GAAP earnings of 39 cents per share, which beat the Zacks Consensus Estimate by 21.88%. The company reported earnings of 24 cents per share in the year-ago quarter.
Revenues were $1.39 billion, up 33% year over year and beat the Zacks Consensus Estimate by 5.23%.
Snowflake shares have surged 34.88% in pre-market trading.
SNOW Top-line Details
SNOW’s fiscal first quarter was driven by consumption across its core platform, with product revenue representing the majority of results. Product revenues totaled $1.33 billion, which accounted for 96% of total revenues. Professional Services and other revenues were $56.6 million, which contributed 4% of total revenues, representing a 25.1% year-over-year increase.
Snowflake Inc. Price, Consensus and EPS Surprise
Snowflake Inc. price-consensus-eps-surprise-chart | Snowflake Inc. Quote
Geographically, results remained concentrated in the Americas, which represented 78% of revenue, with EMEA and APJ contributing 16% and 6%, respectively. The steady regional mix suggests Snowflake is scaling internationally without materially changing its revenue concentration.
Snowflake’s AI-Led Momentum and Partnerships
Snowflake framed the quarter as an inflection point in its AI roadmap, citing accelerating adoption of first-party AI products alongside core platform demand. Management pointed to strong sequential product revenue dollar growth and emphasized the role of offerings such as Cortex Code and Snowflake Intelligence in broadening usage across the installed base.
The company also underscored ecosystem moves aimed at extending distribution and deepening enterprise relevance. It expanded collaboration with AWS through a new $6 billion multi-year agreement, highlighted ongoing work with OpenAI, and noted that capabilities from its SAP partnership reached general availability. Snowflake also signed a definitive agreement to acquire Natoma in May 2026 to strengthen secure connections for AI agents across tools and workflows.
SNOW's Customer Scale Supports Durable Expansion
SNOW ended the quarter with 13,912 total customers and added 616 net new customers, including 13 new Forbes Global 2000 customers. Large-customer depth continued to improve, with 779 customers above the $1 million trailing product revenue threshold, representing 29% year-over-year growth in that cohort.
Retention remained a key support for the consumption model. Net revenue retention rate was 126%, reflecting continued expansion from existing customers, even as usage patterns can vary quarter to quarter. Contracted demand also stayed healthy, with remaining performance obligations of $9.21 billion, up 38% from the year-ago period.
Snowflake’s Operating Details
The non-GAAP gross margin contracted 40 basis points (bps) year over year to 71.8%. Product gross margin was 75.1% in the reported quarter.
Research & development expenses, as a percentage of revenues, decreased 250 bps on a year-over-year basis to 20.4%. General & administrative expenses, as a percentage of revenues, were 5.5%, down 60 bps year over year. Sales and marketing expenses, as a percentage of revenues, contracted 40 bps on a year-over-year basis to 33.9%.
Operating margin expanded 300 bps on a year-over-year basis to 11.9%.
SNOW’s Balance Sheet & Cash Flow Details
The balance sheet remained liquid. As of April 30, 2026, Snowflake reported $2.08 billion in cash and cash equivalents and $870.3 million in short-term investments.
SNOW produced $243.2 million of net cash from operating activities in the quarter. Free cash flow was $232.8 million, and adjusted free cash flow was $265.5 million.
Snowflake Raises Full-Year Product Revenue Outlook
Snowflake expects second-quarter fiscal 2027 product revenues in the range of $1.415-$1.420 billion, implying 30% year-over-year growth, with a non-GAAP operating margin expected to be 12.5%.
For fiscal 2027, the company raised its product revenue outlook to $5.84 billion, representing 31% growth. Snowflake also lifted its full-year non-GAAP operating margin target to 13.5% and reiterated a 75% non-GAAP product gross margin assumption alongside a 23% non-GAAP adjusted free cash flow margin.
SNOW’s Zacks Rank & Stocks to Consider
SNOW currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Computer and Technology sector are Applied Materials (AMAT - Free Report) , Celestica (CLS - Free Report) and Amphenol (APH - Free Report) . Each stock presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Applied Materials have surged 74.4% year to date. The Zacks Consensus Estimate for Applied Materials’ fiscal 2026 earnings is pegged at $12.02 per share, up 9 cents over the past seven days, indicating a 27.6% year-over-year surge.
Shares of Celestica have gained 21% year to date. The Zacks Consensus Estimate for Celestica’s 2026 earnings is pegged at $10.16 per share, up 13.6% over the past 30 days, indicating a year-over-year jump of 67.93%.
Amphenol shares have risen 3.8% year to date. The Zacks Consensus Estimate for APH’s 2026 earnings is pegged at $4.76 per share, up 10.9% over the past 30 days, indicating a year-over-year increase of 42.51%.