Snowflake Beats Q1 Estimates, Significantly Raises FY27 Revenue & Margin Guidance on Strong AI Demand
SNOW sits 85% above its 52-week low of $118.3.
Summary
Snowflake reported better-than-expected Q1 results and significantly raised its full-year revenue and operating margin guidance, citing strong AI-driven demand and strategic partnerships.
Key Events · Earnings and Guidance · SNOW
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Q1 FY2027 Financial Results Beat Estimates
Snowflake reported Q1 product revenue of $1.33 billion (up 34% YoY) and total revenue of $1.39 billion (up 33% YoY), both exceeding analyst expectations. Non-GAAP diluted EPS was $0.39, also beating estimates.
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Full-Year FY2027 Product Revenue Guidance Significantly Raised
The company raised its full-year fiscal 2027 product revenue forecast to $5.84 billion (31% YoY growth) from the prior guidance of $5.66 billion (27% YoY growth), indicating strong future performance.
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Full-Year FY2027 Non-GAAP Operating Margin Guidance Increased
Snowflake also increased its full-year fiscal 2027 non-GAAP operating margin guidance to 13.5% from the previous 12.5%, reflecting improved profitability expectations.
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Strong AI Momentum and Customer Adoption
The company highlighted significant AI momentum, with over 13,600 accounts using Snowflake AI capabilities and a doubling of accounts using Snowflake Intelligence quarter-over-quarter. This is a key driver for the raised guidance.
Analysis · SNOW · Technology
Snowflake reported strong first-quarter results, exceeding analyst expectations for both product revenue and adjusted EPS. More importantly, the company significantly raised its full-year fiscal 2027 product revenue guidance to $5.84 billion (31% YoY growth) from the previous $5.66 billion (27% YoY growth). Non-GAAP operating margin guidance was also increased from 12.5% to 13.5%. This positive outlook is driven by strong AI momentum, customer growth, and expanded strategic partnerships, including a $6 billion multi-year agreement with AWS for AI acceleration and a new AI acquisition. The substantial guidance raise indicates robust business performance and increased confidence in future growth, particularly from AI-driven demand.
At the time of this filing, SNOW was trading at $218.55 on NYSE in the Technology sector, with a market capitalization of approximately $60.7B. The 52-week trading range was $118.30 to $280.67. This filing was assessed with positive market sentiment and an importance score of 9 out of 10.