Full Breakdown
Snowflake Prepares for Q1 FY2027 Earnings Amid Accelerating AI Adoption
5/23/2026, 10:36:13 PM
Upcoming Earnings Announcement
Snowflake Inc. will report its fiscal-2027 first-quarter results after market close on May 27, 2026. The company expects revenue growth driven by enterprise AI workloads.
Growth, Guidance, and Statistics
Snowflake posted Q4 2026 product revenue of $1.23 billion, a 27 % YoY rise, and an AI revenue run rate above $100 million. Net revenue retention was 125 %. The company now serves over 13,300 customers, including 733 accounts spending more than $1 million annually and 56 accounts exceeding $10 million, reflecting deepening enterprise adoption. For Q1 FY2027 Snowflake guides product revenue between $1.262 billion and $1.267 billion, with analysts forecasting total revenue of $1.32 billion and adjusted EPS of $0.32. Full-year product revenue guidance is $5.66 billion, above the $5.50 billion consensus. Remaining performance obligations grew 42 % to $9.77 billion.
Strategic Shift Toward Enterprise AI
Snowflake has repositioned from a data-cloud provider to an AI infrastructure platform. The Cortex AI suite and Snowflake Intelligence enable generative-AI and agentic-AI workloads. Cortex Code, a low-code AI development environment, further lowers barriers for developers. Partnerships with OpenAI, Anthropic and Google Cloud provide native access to leading large-language models. Bank of America raised its price target for Snowflake, reflecting expectations of higher AI-driven margins.
Official Statements & Responses
- MarketBeat (April 2026) said Snowflake is leveraging its Cortex AI suite to become a dominant force in enterprise AI infrastructure.
- Zacks projects FY2027 earnings of $1.81 per share, a 44.8 % YoY increase, and rates Snowflake Hold.
- Bank of America’s revised target reflects confidence in AI-driven margin expansion.
Criticism & Opposition
Snowflake faces competition from Alphabet Inc. and Amazon.com, Inc., whose cloud divisions are expanding AI services. Alphabet’s cloud revenue grew 63 % YoY to about $20 billion in Q1 2026, driven by Gemini. AWS announced new AI partnerships. Snowflake’s share price fell 23.9 % YTD, lagging the broader tech sector.
Conflicting Reports & Gaps
The Q1 FY2027 AI revenue run rate is listed as “TBA,” leaving short-term AI revenue visibility unclear. Analyst consensus revenue ($1.32 billion) exceeds the upper bound of Snowflake’s product-revenue guidance ($1.267 billion), indicating a discrepancy between internal guidance and market expectations.
Verbatim Quotes
> “Snowflake is leveraging its Cortex AI suite to transition from a data cloud leader into a dominant force in the enterprise AI infrastructure market.” — MarketBeat Analysis, April 2026
What’s Next
The May 27 earnings call will detail Cortex adoption, customer wins in financial services and healthcare, and any full-year guidance updates. Investors will watch actual AI-revenue growth against the projected 31 % increase and Snowflake’s ability to convert RPO into recognized revenue.
