Snowflake Q1 Fiscal 2027 Earnings: Revenue Up 33% as AI Demand Accelerates, Outlook Raised
Snowflake's revenue grew 33% and AI product demand accelerated; the company posted a GAAP loss but an adjusted profit, and raised its full-year outlook.
| Q1 2027 | Reported |
|---|---|
| EPS | -$0.86 |
| Revenue | $1.39B |
Figures as reported by the company to the SEC for the quarter ended April 30, 2026. Analyst estimates are not part of a filing, so no comparison to expectations is shown.
Key takeaways
- Total revenue reached $1.39 billion, up 33% from a year earlier, while product revenue (Snowflake’s core cloud data business) grew even faster at 34% to $1.33 billion — the largest quarter-over-quarter dollar increase in the company’s history.
- On a GAAP basis (standard accounting rules) Snowflake posted a net loss of about $0.86 per share, but on an adjusted, non-GAAP basis — which strips out large non-cash costs like employee stock compensation — it earned $0.39 per share, up from $0.24 a year ago; the gap between the two explains why the company can report a loss while still generating cash.
- Growth was driven by rising AI adoption: the company said Cortex Code, a new AI coding tool, saw the fastest customer uptake of any product it has launched, and its Snowflake Intelligence AI features are gaining traction with existing customers.
- Existing customers are spending more: the net revenue retention rate was 126%, meaning customers already on the platform a year ago are now spending 26% more on average, and the number of customers paying over $1 million a year rose to 779.
- Remaining performance obligations — contracted future revenue not yet billed — rose 28% to $4.8 billion, a signal of demand already locked in for coming quarters.
- The TTM figures show gross margin around 67%, meaning most revenue is left over after the direct cost of running its cloud platform, but the business is still spending more on sales, R&D and overhead than it brings in on a GAAP basis, leaving an operating margin of roughly -27% for the trailing year.
- Snowflake raised its full-year fiscal 2027 product revenue guidance to $5.84 billion (31% growth) and raised its non-GAAP operating margin target to 13.5%; for the current quarter it guided to product revenue of $1.415-$1.42 billion, up about 30% year-over-year.
- CEO Sridhar Ramaswamy called it a “milestone quarter” and said AI is now a clear inflection point for the company’s growth.
Q1 2027 in context
| Metric | Apr 2026 | Apr 2025 | Change |
|---|---|---|---|
| Revenue | $1.4B | $1.0B | +33.5% |
| Net income | -$296M | -$430M | +31.3% |
| Free cash flow | $233M | $183M | +26.9% |
| Diluted EPS | -$0.86 | -$1.29 | +33.3% |
| Gross margin | 66.6% | 66.5% | +0.1 pts |
| Operating margin | -23.4% | -42.9% | +19.5 pts |
| Net margin | -21.2% | -41.3% | +20.0 pts |
Figures for the quarter ended Apr 2026 and the quarter ended Apr 2025, as reported to the SEC.
How the stock took it
Snowflake Inc closed at $239.20 on May 28, 2026, the last session before the report, and at $280.16 on Jun 1, 2026, the first session after it — +17.1% across the report.
| Earlier report | Close before | Close after | Change |
|---|---|---|---|
| Dec 5, 2025 | $234.77 | $225.31 | -4.0% |
| Sep 5, 2025 | $221.90 | $226.52 | +2.1% |
Closes from the market's daily record. Each figure spans the report date — from the last session that closed before it to the first that closed after — because a company may report before the open or after the close.
Sources: company report · earnings call