SNOW Q1 2027 Earnings

Call Details

• Call Title: Snowflake Q1 2027 Earnings Call
• Date: May 27, 2026 at 9:00 PM UTC
• Management Team:
  • Katherine McCracken (Head of Investor Relations)
  • Sridhar Ramaswamy (Chief Executive Officer)
  • Brian Robins (Chief Financial Officer)
  • Christian Kleinerman (Executive Vice President of Product)

Call Summary

Financial Performance

• Product revenue for Q1 was $1.334B with growth accelerating to 34% year-over-year, up from 30% last quarter and 26% a year ago.
• Net revenue retention rate increased to 126% for the period.
• Non-GAAP operating margin expanded over 300 basis points year-over-year to 12% in Q1.
• Remaining performance obligations grew 38% year-over-year compared to 34% in Q1 of last year.
• Snowflake ended the quarter with $4.4B in cash, cash equivalents, short-term, and long-term investments.
• Snowflake used approximately $300M to repurchase 1.7 million shares during the quarter and has approximately $800M remaining on the $4.5B repurchase authorization.
• Observe acquisition contributed 173 of 190 hires in the quarter and contributed less than one percentage point to Q1 product revenue growth.

Guidance

• Full-year FY27 product revenue guidance was raised to $5.84B, representing 31% year-over-year growth and an increase from prior 27% guidance.
• Q2 product revenue guidance is $1.415B to $1.42B, representing 30% year-over-year growth.
• Company reiterated a FY27 non-GAAP product gross margin target of 75%.
• Q2 non-GAAP operating margin is expected to be 12.5% and full-year non-GAAP operating margin guidance was increased from 12.5% to 13.5%.
• Non-GAAP adjusted free cash flow margin guidance of 23% was reiterated for FY27.
• Full-year margin and free cash flow guidance include approximately a 150 basis point headwind related to the Observe acquisition, unchanged from last quarter.
• Guidance methodology remains based on observed consumption patterns with no change to forecast philosophy.