Snowflake Inc (NYSE:SNOW) reported financial results for the first quarter of fiscal 2027 after the market close on Wednesday. Here’s a look at the key details from the print.
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Snowflake Q1 Earnings
Snowflake posted first-quarter revenue of $1.39 billion, beating analyst estimates of $1.32 billion, according to Benzinga Pro. The AI data cloud company reported adjusted earnings of 39 cents per share for the quarter, beating analyst estimates of 32 cents per share.
Total revenue was up 33% year-over-year with a net revenue retention rate of 126%. Product revenue came in at $1.33 billion, up 34% on a year-over-year basis.
Remaining performance obligations totaled $9.21 billion, up 38% year-over-year. Snowflake said it ended the quarter with 779 customers with trailing 12-month product revenue greater than $1 million after adding 616 new customers in the quarter.
The company had approximately $2.08 billion in cash and cash equivalents at quarter’s end.
“AI continues to be a powerful tailwind for Snowflake, and Q1 marks a clear inflection point in that journey. With Cortex Code and Snowflake Intelligence, we are extending from the trusted foundation for enterprise data and context to become the control plane for the Agentic Enterprise,” said Sridhar Ramaswamy, CEO of Snowflake.
“We are seeing strong momentum from both AI-driven acceleration of our core platform and growing adoption of our first-party AI products, positioning Snowflake to lead in this new era.”
Snowflake sees second-quarter product revenue in the range of $1.415 billion to $1.42 billion, up approximately 30% year-over-year. The company noted that it expects an adjusted operating margin of 12.5% in the second quarter and 13.5% for the full year.
Snowflake Expands AWS Collaboration, Announces Natoma Acquisition
In connection with earnings, Snowflake announced a new multi-year strategic collaboration agreement with Amazon Web Services (AWS) to accelerate enterprise agentic AI adoption. Snowflake will make a $6 billion multi-year infrastructure commitment to AWS as part of the deal.
Snowflake also announced it signed a definitive agreement to acquire Natoma, an enterprise Model Context Protocol platform for AI agents. The company intends to use the acquisition to make it easier to securely connect and manage how AI systems interact with enterprise applications, databases, APIs and tools.
Snowflake executives will further discuss the quarter on an earnings call with investors and analysts at 5 p.m. ET.
SNOW Stock Is On Fire After Hours
SNOW Price Action: Snowflake shares were up 32.95% in after-hours, trading at $233 at publication time on Wednesday, according to Benzinga Pro.
Image: Shutterstock.com
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