SNOW · Snowflake Inc.

Snowflake's Q1 FY2027 results were a standout beat, driven by robust AI adoption and accelerating consumption. Product revenue of $1.33B (+34% YoY) exceeded the implied guidance range ($1.31-$1.315B from previous quarter), marking the strongest sequential dollar growth in company history. The beat was fueled by a surge in large customers (779 with >$1M trailing 12-month product revenue, up 29% YoY) and a net revenue retention rate of 126%. AI momentum was a key driver: over 13,600 accounts used Snowflake AI capabilities, with Snowflake Intelligence accounts more than doubling QoQ and Cortex Code adopted by 7,100+ accounts. The company also announced a $6B multi-year AWS agreement and expanded partnerships with OpenAI and SAP. On margins, non-GAAP product gross margin held at 75.1%, while non-GAAP operating margin improved to 11.9% from 9.0% a year ago, reflecting operating leverage despite heavy R&D and sales investments. GAAP operating loss narrowed to $(326)M. Cash generation remained strong: operating cash flow of $243M and adjusted free cash flow of $266M (19% margin). Guidance was a significant positive surprise: Q2 product revenue of $1,415-$1,420M (+30% YoY) and full-year FY2027 product revenue raised to $5.84B (+31% YoY) from $5.66B, implying acceleration in the back half. Full-year non-GAAP operating margin guidance also improved to 13.5% from 12.5%, signaling confidence in scale. The raised guidance underscores management's conviction that AI-driven tailwinds are durable. No capital return initiatives were announced; the company continues to prioritize reinvestment. Overall, this was a clean beat-and-raise quarter, demonstrating Snowflake's successful pivot to AI and strong execution in a competitive market.