Snowflake Inc. Reports Robust Q1 Results for Fiscal 2027

Snowflake Inc. (NYSE: SNOW), the leading AI Data Cloud company, has unveiled impressive financial results for the first quarter of its fiscal year 2027, which concluded on April 30, 2026. The company reported product revenue of $1.33 billion, reflecting a remarkable 34% year-over-year increase. This quarter marks the strongest sequential dollar growth in Snowflake's history, signaling a significant inflection point in the company's trajectory towards becoming a leader in the AI-driven enterprise landscape.

Sridhar Ramaswamy, CEO of Snowflake, expressed his enthusiasm about the company's performance, stating, "AI continues to be a powerful tailwind for Snowflake, and Q1 marks a clear inflection point in that journey." He highlighted the company's innovative offerings, including Cortex Code and Snowflake Intelligence, which are designed to position Snowflake as the control plane for the Agentic Enterprise.

The momentum behind Snowflake's growth is closely tied to its advancements in artificial intelligence. The company reported that over 13,600 accounts are now utilizing Snowflake's AI capabilities, and the number of accounts leveraging Snowflake Intelligence more than doubled quarter-over-quarter. Furthermore, Cortex Code is currently being employed across more than 7,100 accounts, underscoring the growing adoption of these transformative tools.

Brian Robins, Snowflake's CFO, noted the urgency with which customers are migrating to Snowflake's platform, as evidenced by the addition of 616 net new customers during the quarter—an increase of 38% year-over-year. Notably, 13 of these new customers are from the prestigious Forbes Global 2000 list, further validating Snowflake's expanding influence in the enterprise market.

In addition to customer growth, Snowflake reported accelerated product velocity, delivering over 20% more capabilities than in the previous year. The company is enhancing its offerings with new features across Cortex Code and Snowflake Intelligence, marking a commitment to continuous innovation.

Strategically, Snowflake has expanded its collaboration with Amazon Web Services (AWS) through a groundbreaking $6 billion multi-year agreement aimed at accelerating enterprise AI adoption on a global scale. Furthermore, Snowflake has deepened its partnership with OpenAI to co-innovate and deliver advanced AI capabilities, while also bringing features from its landmark SAP partnership to general availability.

In a significant move to bolster its AI capabilities, Snowflake signed a definitive agreement in May 2026 to acquire Natoma, an enterprise Model Context Protocol platform for AI agents. This acquisition aims to facilitate secure connections between AI and the tools users rely on, enhancing governance over AI-driven workflows.

Given the strong momentum observed across both its core platform and AI business, Snowflake has raised its full-year product revenue guidance. For the second quarter of fiscal 2027, the company anticipates product revenue between $1,415 million and $1,420 million, representing a 30% year-over-year growth.

For the full fiscal year 2027, Snowflake expects product revenue to reach approximately $5,840 million, reflecting a 31% year-over-year growth, up from prior guidance of $5,660 million. Additionally, the company is forecasting a non-GAAP operating margin of 13.5%, an increase from the previously expected 12.5%.

As Snowflake continues to innovate and expand its footprint in the AI data cloud sector, the company's strong performance in Q1 2027 reflects its strategic direction and the increasing urgency among enterprises to adopt AI-driven solutions. The future looks promising for Snowflake as it positions itself at the forefront of the evolving data landscape.