Snowflake Q1 product revenue rises on increased AI adoption, lifts 2027 revenue forecast
Snowflake Q1 product revenue rises on increased AI adoption, lifts 2027 revenue forecast
Overview
US data cloud platform's fiscal Q1 product revenue rose 34% yr/yr to $1.33 bln
Company posted GAAP net loss per share of $0.86 and operating loss of $326.2 mln
Company to acquire AI platform Natoma in deal signed in May 2026
Outlook
Snowflake sees Q2 product revenue of $1.415 bln to $1.420 bln, up 30% yr/yr
Company raises FY27 product revenue guidance to $5.84 bln, up 31% yr/yr
Snowflake expects FY27 non-GAAP operating margin of 13.5%, up from prior 12.5%
Result Drivers
AI ADOPTION - Snowflake said AI-driven acceleration of its core platform and increased adoption of first-party AI products drove Q1 growth
LARGE CUSTOMER GROWTH - Number of customers spending over $1 mln rose 29% yr/yr, with 46 crossing the threshold in Q1, up from 26 a year ago
PLATFORM INNOVATION - Company delivered over 20% more product capabilities than a year ago, citing new features in Cortex Code and Snowflake Intelligence
Company press release: ID:nBw1R6rqma
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Product Revenue |
| $1.33 bln |
|
Q1 EPS |
| -$0.86 |
|
Q1 Operating Income |
| -$326.20 mln |
|
Q1 Product Gross Profit |
| $947.50 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 45 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the it services & consulting peer group is "buy"
Wall Street's median 12-month price target for Snowflake Inc is $225.72, about 27.1% above its May 26 closing price of $177.60
The stock recently traded at 89 times the next 12-month earnings vs. a P/E of 118 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)