Snowflake (SNOW) Q1 2027 earnings summary

Executive summary

• Achieved Q1 FY27 product revenue of $1.33 billion, up 34% year-over-year, with total revenue of $1.39 billion, driven by strong AI adoption and major customer wins across industries.

• Net revenue retention rate reached 126%, with 779 customers generating over $1 million in trailing 12-month product revenue, and total customer count at 13,912, including 813 Forbes Global 2000 customers.

• Major partnerships and expansions included AWS ($6 billion agreement), OpenAI, SAP, and acquisitions of Observe and Natoma to enhance AI and agentic capabilities.

• Net loss narrowed to $295.6 million, reflecting improved operating leverage and lower expenses.

• Leadership changes included the appointment of a new Chief Revenue Officer and the transition of the Co-Founder to a Board role.

Financial highlights

• Q1 FY27 product revenue was $1.33 billion, up 34% year-over-year, with total revenue of $1.39 billion and professional services revenue of $56.6 million.

• Non-GAAP product gross margin was 75.1%, and non-GAAP operating margin improved to 11.9%–20% in Q1 FY27.

• Free cash flow was $232.8 million (16.7% margin), with adjusted free cash flow at $265.5 million (19.1% margin).

• Stock-based compensation was $402.5 million, representing 29% of revenue, down from 36% a year ago.

• Remaining performance obligations totaled $9.21 billion, up 38% year-over-year.

Outlook and guidance

• FY27 product revenue guidance raised to $5.84 billion, representing 31% year-over-year growth.

• Q2 FY27 product revenue expected between $1.415 billion and $1.42 billion, up 30% year-over-year.

• FY27 non-GAAP product gross margin expected at 75%, non-GAAP operating margin at 13.5%, and adjusted free cash flow margin at 23%.

• Approximately 50% of remaining performance obligations expected to be recognized as revenue in the next 12 months.