Snowflake Q1 Earnings Beat Estimates, Raises Full-Year Product Revenue Outlook

Earnings
โดย Zacks Investment Research·Read original
Summary · why it matters

Snowflake reported first-quarter fiscal 2027 non-GAAP earnings of 39 cents per share, beating the Zacks Consensus Estimate by 21.88%, with revenues of $1.39 billion, up 33% year over year. Product revenues totaled $1.33 billion, accounting for 96% of total revenues, while the company added 616 net new customers to reach 13,912 total customers and maintained a net revenue retention rate of 126%. Snowflake raised its full-year product revenue outlook to $5.84 billion, representing 31% growth, and lifted its non-GAAP operating margin target to 13.5%. The company also expanded its collaboration with AWS through a new $6 billion multi-year agreement and signed a definitive agreement to acquire Natoma in May 2026. Shares have lost about 5.1% since the last earnings report, underperforming the S&P 500.

Impact on stocks 3

Cloud & Digital Infrastructure▲ · 3 stocks
Snowflake Inc.
SNOW
▲ PositiveCapitalrelevance

Snowflake beat Q1 earnings estimates, raised full-year product revenue outlook, and lifted operating margin target.

Amazon.com Inc
AMZN
▲ PositiveDemandrelevance

Snowflake expanded collaboration with AWS through a $6 billion multi-year agreement, boosting AWS's cloud services demand.

Theme Impact 1

Related news

2

Nokia Expands Microsoft Partnership for AI-Driven Network Automation

Nokia Corporation is expanding its partnership with Microsoft Corporation to build an agentic, unified data foundation aimed at helping telecom providers scale artificial intelligence-driven operations. Under the agreement, Nokia Data Suite integrates with Microsoft Fabric, combining telco-specific data products with unified analytics, governance and AI capabilities across cloud, hybrid and on-premises environments. The company is initially applying these capabilities to autonomous Voice over New Radio assurance, where AI agents detect network anomalies, analyze service issues and recommend corrective actions. Nokia faces competition from Ericsson, which expanded its Intelligent Automation Platform to support automation across radio and core networks, and from Cisco Systems, which is integrating AI agents into its networking portfolio. Nokia shares have soared 123.6% over the past year compared with the industry's 20.6% growth, and the stock trades at a forward price-to-sales ratio of 2.42 versus the industry tally of 4.93.
NOA3.XETRA ▲MSFT ▲0O86.LSE CSCO ERCB.XETRA
Artificial Intelligence ▲Cloud & Digital Infrastructure
Zacks Investment Research·14hRead more →
▲2impact 4

Snowflake Raises Fiscal 2027 Product Revenue Guidance to $6.07 Billion

Snowflake raised its fiscal 2027 product revenue guidance to $6.07 billion, implying 36% year-over-year growth, up from its previous outlook of $5.84 billion and 31% growth. In the fiscal second quarter 2026, product revenues rose 37% to $1.49 billion and accounted for 96% of total revenues. Management said AI products contributed roughly half of the recent acceleration, with CoCo surpassing 9,100 accounts after adding more than 2,000 in the quarter and CoWork expanding to 5,800 accounts, up nearly 11% sequentially. The company ended the second quarter of fiscal 2027 with 14,554 total customers, up 32% year over year, including 828 customers generating more than $1 million in trailing 12-month product revenues, up 27%, and 65 customers above $10 million. Fiscal third-quarter product revenues are expected between $1.588 billion and $1.593 billion, indicating 37-38% growth, while the Zacks Consensus Estimate for fiscal 2027 earnings stands at $2.19 per share, up 11.16% over the past 30 days.
SNOW ▲
Cloud & Digital Infrastructure ▲Artificial Intelligence ▲
Zacks Investment Research·16hRead more →
▲

Snowflake Earns Zacks Rank #2 as Earnings Estimates Climb

Snowflake Inc. is drawing heightened investor attention after Zacks Investment Research highlighted sharply rising earnings estimates for the data-warehousing company. For the current quarter, Snowflake is expected to post earnings of $0.60 per share, a change of +71.4% from the year-ago quarter, while the Zacks Consensus Estimate has moved +17.5% over the last 30 days. For the current fiscal year, the consensus earnings estimate of $2.19 points to a change of +75.2% from the prior year, and for the next fiscal year the consensus estimate of $2.84 indicates a change of +29.6%. On revenue, the consensus sales estimate for the current quarter of $1.64 billion indicates a year-over-year change of +35.5%, with current and next fiscal year estimates of $6.29 billion and $8 billion pointing to changes of +34.2% and +27.3%, respectively. In its last reported quarter, Snowflake posted revenues of $1.55 billion, a year-over-year change of +35.1%, and EPS of $0.62 versus $0.35 a year ago, beating the Zacks Consensus revenue estimate of $1.47 billion by +4.91% and the EPS estimate by +37.78%. Citing the size of the recent change in the consensus estimate along with three other earnings-related factors, Zacks rates Snowflake Zacks Rank #2 (Buy), though the stock carries a Zacks Value Style Score of F, indicating it trades at a premium to its peers.
SNOW ▲
Cloud & Digital Infrastructure ▲
Zacks Investment Research·16hRead more →
© 2026 MarketDXNews