Snowflake (NYSE:SNOW) Announces Quarterly Earnings Results, Beats Expectations By $0.07 EPS

Snowflake (NYSE:SNOW) posted its quarterly earnings data on Wednesday. The company reported $0.39 earnings per share for the quarter, topping the consensus estimate of $0.32 by $0.07, FiscalAI reports. The business had revenue of $1.39 billion during the quarter, compared to the consensus estimate of $1.32 billion. Snowflake had a negative net margin of 28.43% and a negative return on equity of 50.61%. The company’s quarterly revenue was up 33.5% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.24 earnings per share.

Here are the key takeaways from Snowflake’s conference call:

• Snowflake reported Q1 product revenue of $1.334 billion, with growth accelerating to 34% year over year, alongside a 126% net revenue retention rate and the strongest sequential dollar growth in company history.
• The company raised its FY 2027 product revenue outlook to $5.84 billion or 31% growth, citing strength in the core platform and increasing contribution from AI products like Cortex Code and Snowflake Intelligence.
• Snowflake said its new AI offerings are seeing rapid adoption, with Snowflake Intelligence accounts more than doubling quarter over quarter and Cortex Code now in use at more than 7,100 accounts.
• Operating leverage improved, with non-GAAP operating margin expanding over 300 basis points year over year to 12%; management also raised full-year operating margin guidance to 13.5%.
• Snowflake announced an intended acquisition of Natoma and an expanded $6 billion multi-year AWS agreement, both aimed at extending its agentic AI control plane and supporting future growth, while the AWS deal also helps offset AI-related gross margin pressure.

Snowflake Price Performance

Shares of SNOW opened at $174.60 on Thursday. The company has a market capitalization of $60.36 billion, a price-to-earnings ratio of -44.20 and a beta of 1.08. Snowflake has a fifty-two week low of $118.30 and a fifty-two week high of $280.67. The company has a debt-to-equity ratio of 1.18, a current ratio of 1.30 and a quick ratio of 1.30. The business’s 50-day moving average is $153.75 and its 200-day moving average is $190.65.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on SNOW. Sanford C. Bernstein reduced their price objective on shares of Snowflake from $237.00 to $195.00 and set a “market perform” rating for the company in a report on Thursday, February 26th. Citizens Jmp reaffirmed a “market outperform” rating and issued a $325.00 price objective on shares of Snowflake in a report on Tuesday, May 19th. Monness Crespi & Hardt upped their price target on shares of Snowflake from $275.00 to $282.00 and gave the company a “buy” rating in a report on Thursday, February 26th. Truist Financial set a $125.00 price target on shares of Snowflake in a report on Wednesday, April 15th. Finally, The Goldman Sachs Group reissued a “buy” rating and issued a $278.00 price target on shares of Snowflake in a report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Snowflake has a consensus rating of “Moderate Buy” and an average price target of $242.38.

Insider Transactions at Snowflake

In related news, Director Frank Slootman sold 144,650 shares of the stock in a transaction that occurred on Tuesday, May 19th. The stock was sold at an average price of $175.45, for a total value of $25,378,842.50. Following the transaction, the director owned 38,046 shares in the company, valued at approximately $6,675,170.70. This represents a 79.18% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Christian Kleinerman sold 10,000 shares of the company’s stock in a transaction that occurred on Monday, March 2nd. The stock was sold at an average price of $165.01, for a total value of $1,650,100.00. Following the sale, the executive vice president directly owned 510,477 shares of the company’s stock, valued at $84,233,809.77. The trade was a 1.92% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 428,963 shares of company stock worth $71,996,216. Corporate insiders own 4.80% of the company’s stock.

Institutional Investors Weigh In On Snowflake

A number of large investors have recently added to or reduced their stakes in SNOW. Kemnay Advisory Services Inc. bought a new stake in shares of Snowflake in the fourth quarter valued at approximately $28,000. Greenline Wealth Management LLC bought a new stake in shares of Snowflake in the fourth quarter valued at approximately $29,000. JPL Wealth Management LLC bought a new stake in shares of Snowflake in the third quarter valued at approximately $39,000. Geneos Wealth Management Inc. boosted its position in shares of Snowflake by 29.7% in the first quarter. Geneos Wealth Management Inc. now owns 319 shares of the company’s stock valued at $47,000 after acquiring an additional 73 shares during the period. Finally, Strive Financial Group LLC bought a new stake in shares of Snowflake in the fourth quarter valued at approximately $59,000. Institutional investors own 65.10% of the company’s stock.

Trending Headlines about Snowflake

Here are the key news stories impacting Snowflake this week:

• Positive Sentiment: Snowflake reported Q1 fiscal 2027 earnings of $0.39 per share, topping estimates of $0.32, on revenue of $1.39 billion versus expectations of $1.32 billion, with product revenue up 34% year over year. Snowflake Reports Financial Results for the First Quarter of Fiscal 2027
• Positive Sentiment: The company raised its annual product revenue forecast, signaling stronger-than-expected demand from enterprises adopting AI-driven workloads and cloud migrations. Snowflake raises annual product revenue forecast as enterprises ramp up AI workloads
• Positive Sentiment: Snowflake announced a five-year, $6 billion strategic collaboration with AWS, including spending tied to Graviton processors and AI infrastructure, which investors see as a major validation of its AI expansion plans. Snowflake signs $6 billion deal with AWS tied to AI infrastructure
• Positive Sentiment: Snowflake also disclosed plans to acquire Natoma, an enterprise AI-agent connectivity platform, to strengthen its governance and identity layer for agentic AI use cases. Snowflake Announces Intent to Acquire Natoma, Providing Secure Connectivity For The Agentic Enterprise

Snowflake Company Profile

Snowflake Inc is a cloud-native data platform company that provides a suite of services for storing, processing and analyzing large volumes of data. Its core offering, often described as the Snowflake Data Cloud, combines data warehousing, data lake and data sharing capabilities in a single managed service delivered across major public cloud providers. The platform is designed to support analytics, data engineering, data science and application workloads with a focus on scalability, concurrency and simplified administration.

Key products and capabilities include a multi-cluster, shared-data architecture that separates compute from storage; continuous data ingestion and streaming; support for structured and semi-structured data formats; tools for data governance, security and compliance; and developer frameworks for building data applications.