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    SNOW
    Earnings call· Apr 2026(Q1 FY27)

    Snowflake Q1 FY27 earnings call SNOW

    May 27, 2026 Source

    Executive summary

    Snowflake Inc. Q1 FY27 — AI-Driven Growth Acceleration and Strong Outlook Increase

    Snowflake delivered a strong quarter, driven by accelerating product revenue growth and expanding margins, fueled by the powerful flywheel effect of AI. The company's core data platform business is benefiting from increased customer urgency to migrate workloads for AI, while new AI products like Snowflake Intelligence and Cortex Code are seeing rapid adoption and contributing meaningfully to revenue. This momentum has led to a significant increase in the full-year outlook, underscoring confidence in the agentic enterprise vision and continued operational discipline.

    Highlights

    5
    • Product revenue grew 34% year-over-year to $1.334 billion, accelerating from 30% last quarter.

    • Net revenue retention rate increased to 126%.

    • Non-GAAP operating margin expanded over 300 basis points year-over-year to 12%.

    • Added 616 net new customers, a 38% year-over-year increase, including 13 Global 2000 customers.

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

    Guidance & targets

    10
    CategoryTargetConfidence
    Full-year FY27 Product Revenue
    $5.84 billion
    high materiality
    High
    Full-year FY27 Product Revenue Growth
    31% year-over-year growth
    high materiality
    High
    Q2 FY27 Product Revenue
    $1.415 billion to $1.42 billion
    medium materiality
    High
    Q2 FY27 Product Revenue Growth
    30% year-over-year growth
    medium materiality
    High
    Full-year FY27 Non-GAAP Product Gross Margin
    75%
    medium materiality
    High
    Q2 FY27 Non-GAAP Operating Margin
    12.5%
    medium materiality
    High
    Full-year FY27 Non-GAAP Operating Margin
    13.5%
    high materiality
    High
    Full-year FY27 Non-GAAP Adjusted Free Cash Flow Margin
    23%
    high materiality
    High
    Observe Acquisition Product Revenue Growth Contribution
    approximately 1 percentage point
    low materiality
    High
    Observe Acquisition Margin Headwind
    approximately 150 basis points
    low materiality
    High

    Operational metrics

    26
    Product revenue
    $1.334 billion34% year-over-year growth
    Q1 FY27

    Product revenue growth accelerated in Q1 FY27.

    Net revenue retention rate
    126%increased
    Q1 FY27

    Reflects continued customer expansion.

    Non-GAAP operating margin
    12%expanded over 300 basis points year-over-year
    Q1 FY27

    Driven by strong revenue growth and disciplined hiring.

    Net new customers
    61638% year-over-year
    Q1 FY27

    Highest net new customer additions in company history.

    Global 2000 customer additions
    13compared to 4 in the same period last year
    Q1 FY27

    Increased adoption among large enterprises.

    Customers spending over $10 million TTM
    64
    Q1 FY27

    Total number of large customers.

    Customers spending over $1 million TTM
    79
    Q1 FY27

    Total number of customers with significant spend.

    Accounts using Snowflake Intelligence
    more than doubledquarter-over-quarter
    Q1 FY27

    Rapid adoption of the business user interface for the agentic control plane.

    Accounts using Cortex Code (CoCo)
    more than 7,100
    Q1 FY27

    Rapid adoption of the builder interface for the agentic control plane, launched in Q1.

    New use cases deployed on Snowflake
    114% increaseyear-over-year
    Q1 FY27

    Reflects customers moving more workloads into production.

    Use cases per Account Executive
    86% increaseyear-over-year
    Q1 FY27

    Underscores growing customer demand and improved sales execution.

    Internal case resolution time (support)
    over 25% faster
    Q1 FY27

    Achieved through CoCo analysis and AI-accelerated investigations.

    Internal Crete throughput per engineer (support)
    25% increase
    Q1 FY27

    Achieved through CoCo analysis and AI-accelerated investigations.

    Internal complex case resolution time (SRE)
    nearly 30% reduction
    Q1 FY27

    Achieved by using CoCo in the SRE team.

    Internal engineering time per ticket (SRE)
    roughly 40% reduction
    Q1 FY27

    Achieved by using CoCo in the SRE team.

    Internal developer productivity (data organization)
    doubled
    Q1 FY27

    Achieved through CoCo usage.

    Internal workflows automated (finance, marketing, sales, HR)
    more than 100
    Q1 FY27

    Achieved through CoCo usage.

    Product capabilities released
    over 20% moreyear-over-year
    Q1 FY27

    Underscores pace of innovation and platform expansion.

    Employee additions
    190compared to approximately 400 in the year ago period
    Q1 FY27

    Reflects disciplined hiring and efficiencies from AI.

    Share repurchases
    $300 million
    Q1 FY27

    Part of the ongoing share repurchase program.

    Remaining share repurchase authorization
    $800 million
    Q1 FY27

    Amount remaining from the original authorization.

    Cash, cash equivalents, short-term and long-term investments
    $4.4 billion
    Q1 FY27

    Ending balance for the quarter.

    AWS contract value
    $6 billionmore than doubling our prior contract
    5-year

    Multiyear agreement to accelerate enterprise AI adoption globally.

    Lifetime AWS Marketplace sales
    $7 billion
    lifetime

    Snowflake surpassed this milestone, reflecting demand for AI and data workloads.

    OpenAI partnership value
    $200 million
    Q1 FY27

    Expanding partnership with OpenAI.

    Natoma acquisition employees
    20
    Q1 FY27

    Number of employees joining Snowflake through the intended acquisition.

    Industry KPIs

    10
    MetricValueDetails
    Headcount dso190 employeesemployees
    Rpo current rpo38% year-over-year growth%
    Rule of 40 margins12% operating margin, 23% adjusted free cash flow margin%
    Customer logo metrics616 net new customerscustomers
    Large customer cohorts64 customerscustomers
    Genai ai book of businessmeaningful AI revenue
    Consumption revenue growth$1.334 billionUSD
    Sales capacity productivity86% increase%
    Net revenue dollar retention126%%
    Ai agentic channel product adoptionmore than doubledaccounts

    Orderbook & backlog

    1
    Remaining Performance Obligations (RPO)38% year-over-year growthQ1 FY27

    Compared to 34% in Q1 of last year. Customers continue to favor Q4 renewals, leading to bookings increasingly weighted towards the fourth quarter.

    Product announcements

    3
    ProductTypeDetails
    Snowflake Intelligencelaunch
    Cortex Code (CoCo)launch
    SAP Joint Capabilityexpansion

    Deals & partnerships

    4
    AWSExpanded Collaboration Agreement$6 billion5-year

    Multiyear agreement to accelerate enterprise AI adoption globally, leveraging Graviton compute and AI services. Snowflake surpassed $7 billion in lifetime AWS Marketplace sales.

    OpenAIPartnership$200 million

    Expanding partnership to enhance AI capabilities.

    NatomaIntended Acquisition

    Extends the Snowflake agentic control plane beyond data workflows into everyday applications (e.g., email, Slack, Jira), enhancing AI governance and actionability.

    SAPJoint Capability Partnership

    Enables customers to unite mission-critical business data across their core data systems within Snowflake's AI data cloud.

    Q&A highlights

    6

    What inflected in Q1 to drive the strong sequential dollar growth and raised guidance, specifically regarding market demand and the contribution of AI capabilities versus core data platform expansion?

    AI is accelerating the value customers get from data in Snowflake, acting as a healthy secular tailwind for the core data platform. Agentic products like Snowflake Intelligence and Cortex Code (CoCo), launched in Q1, saw strong traction and are driving more consumption on the core platform by making projects easier and faster. CoCo was the largest driver to the increased forecast, as it was layered into the model based on observed behavior post-launch, alongside acceleration in the core business.

    AI is accelerating the value that people can get from the data that they have put into Snowflake or that they can put into Snowflake. So we saw like a healthy secular tailwind for our core data platform. And part two is really that agentic products, the control plane products like Snowflake Intelligence, and Cortex Code, CoCo, came into their own in Q1.

    asked by Sanjit Singh · answered by Sridhar Ramaswamy

    2 min read6 chapters

    Detailed Narrative

    01

    AI as a Catalyst for Core Platform Growth

    AI is fundamentally reshaping how work gets done, with Snowflake at the center of this transformation. The company observes that AI is accelerating consumption in its core platform as customers migrate workloads to Snowflake faster to access the necessary data context and governance. This tailwind is evident in the pace of new customer additions, with net new customer additions increasing 38% year-over-year and 13 Global 2000s added in Q1 FY27.

    02

    Agentic Enterprise Vision and Product Adoption

    Snowflake is uniquely positioned to help customers become 'agentic enterprises' by providing a unified, governed data foundation, access to leading AI models, and connectivity across enterprise applications. Snowflake Intelligence offers a natural language interface for business users, while Cortex Code (CoCo) provides builders with a natural language way to create applications and workflows directly on Snowflake. Both products are seeing the fastest adoption of any new products in the company's history, with accounts using Snowflake Intelligence more than doubling quarter-over-quarter and CoCo in use with over 7,100 accounts.

    03

    Customer Success and Expansion

    Customers continue to expand their use of Snowflake, with examples including Holiday Inn Club Vacations, Health, and a large US bank completing a complex Teradata migration. Nestle is expanding its use for enterprise digital transformation, enabling real-time connected views of its business. A wealth management firm built a Cortex-powered agent, 'Osteo data,' which answers over 60% of business inquiries previously routed to analysts. This expansion is reflected in large customer growth, with 64 customers now spending over $10 million in TTM revenue.

    04

    Internal AI Transformation and Efficiency Gains

    Snowflake is leveraging AI internally to drive productivity. CoCo now analyzes incoming customer cases for the global support organization, leading to over 25% faster case resolution times and a 25% increase in throughput per engineer. The SRE team has reduced complex case resolution time by nearly 30% and engineering time per ticket by roughly 40%. Internal data teams have doubled developer productivity and automated over 100 workflows across various departments, demonstrating significant operational transformation.

    05

    Go-to-Market and Ecosystem Expansion

    The company is strengthening its go-to-market organization under new CRO Jonathan Boulier, seeing increased use cases won (up 114% YoY) and use cases per account executive (up 86% YoY). Snowflake announced an expanded $6 billion multiyear agreement with AWS to accelerate enterprise AI adoption, building on over $7 billion in lifetime AWS Marketplace sales. A $200 million partnership with OpenAI was also announced, and a joint capability with SAP reached general availability, further extending the AI data cloud's reach.

    06

    Strategic Acquisition and Future Vision

    Snowflake announced the intended acquisition of Natoma, which will extend the agentic control plane beyond data workflows into everyday applications like email, Slack, and Jira. This acquisition aims to enhance AI governance by allowing companies to safely manage actions AI agents take across business workflows. This move reinforces Snowflake's vision of becoming the 'agentic control plane' where intent becomes governed action, connecting data, models, applications, and workflows in a trusted environment.

    AI-generated summary of the company’s earnings call. Not investment advice.