Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Snowflake Inc. delivered 33.5% year-over-year revenue growth to $1.4B in Q1 FY2027, improved its operating loss and generated $232.8M of free cash flow, but remained GAAP unprofitable and faces consumption-volatility, cloud-competition, AI-execution, and cybersecurity risks. Source: 10-Q Item 2 MD&A, pp.43-46; 10-Q Income Statement (XBRL).
Revenue
$1.39B
+33.48% YoY
EPS (Diluted)
-$0.86
+33.33% YoY
Gross Margin
66.6%
+0.1 pts YoY
Operating Income
-$326.15M
+27.08% YoY
Source: SEC XBRL
Snowflake (SNOW) reported Q1 FY2027 revenue of $1.39B, up 33.5% year over year. Operating margin was -23.4%, against -42.9% a year earlier. Operating cash flow was $243.22M, up 6.5% year over year. SNOW's fiscal Q1 FY2027 corresponds to calendar Q2 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Sep 2026 | 0.62 | 0.46 | Beat +36.2% |
| Jun 2026This filing | 0.39 | 0.32 | Beat +20.1% |
| Mar 2026 | 0.32 | 0.28 | Beat +15.6% |
| Dec 2025 | 0.35 | 0.32 | Beat +10.6% |
Adjusted (non-GAAP) EPS of $0.39 versus the $0.32 analyst consensus — a +20.1% beat for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was -$0.86.
Compiled by AI from 10-Q Item 2 of this filing
Revenue was $1.4B in the three months ended April 30, 2026, while product revenue was $1.3B. Snowflake recognizes most revenue as customers consume compute, storage, and data-transfer resources rather than ratably over contract terms; management says consumption can fluctuate due to macroeconomic conditions, customer optimization, holidays, and platform-efficiency improvements.
Source: 10-Q Item 2 MD&A
Net revenue retention was 126% as of April 30, 2026, up from 124% a year earlier. Customers generating more than $1M of trailing-12-month product revenue increased to 779 from 604, while total customers reached 13,912, up from 13,296 at January 31, 2026.
Source: 10-Q Item 2 MD&A
Snowflake had 813 Forbes Global 2000 customers as of April 30, 2026, and these customers contributed approximately 43% of revenue during the quarter. This concentration underscores the importance of continued platform adoption and workload expansion among large enterprises.
Source: 10-Q Item 2 MD&A
Remaining performance obligations were $9.2B as of April 30, 2026, compared with $9.8B at January 31, 2026. Management expects approximately 50% of April 30 RPO to be recognized over the following 12 months, but emphasizes that RPO is not necessarily predictive of product-revenue growth because customers control the timing of consumption and may roll unused capacity into later periods.
Source: 10-Q Item 2 MD&A
On February 2, 2026, Snowflake acquired Observe, an AI-powered observability-platform company, for preliminary consideration of $595.8M, including $285.7M in cash and approximately 1.5M Snowflake shares valued at $285.3M. Observe's operating results have been included in Snowflake's financial statements since the acquisition date.
Source: 10-Q Item 2 MD&A
Compiled by AI from 10-Q Item 1A of this filing · 4 high, 1 medium, 0 low
Snowflake recognizes revenue as customers consume compute, storage, and data-transfer resources, rather than on a straight-line subscription basis. Customer optimization, holidays, macroeconomic pressure, and technology improvements that lower resources needed per workload can reduce consumption versus expectations and cause results to vary from forecasts.
Source: 10-Q Item 1A Risk Factors
Snowflake runs its platform on AWS, Microsoft Azure, and Google Cloud Platform, with a substantial majority of its business currently operating on AWS. These providers may bundle competing services, offer unfavorable pricing, use their customer relationships to limit Snowflake opportunities, or provide privileged interoperability to their own products; Snowflake's gross margin is also significantly influenced by infrastructure pricing.
Source: 10-Q Item 1A Risk Factors
Snowflake processes sensitive customer and partner data and relies on a network of third-party providers, sub-processors, integrations, and customer-configured security controls. A breach, credential exposure, supply-chain attack, or perceived security failure could lead to outages, data loss, regulatory investigations, litigation, remediation expense, customer attrition, and reputational damage, even where Snowflake is not at fault.
Source: 10-Q Item 1A Risk Factors
Snowflake is investing significantly in internally developed and acquired AI technology, including third-party large-language-model components. Its success depends on access to GPUs and AI talent, customer ability to meet evolving regulatory and internal compliance requirements, and whether AI investments produce customer adoption and strengthen the core data platform.
Source: 10-Q Item 1A Risk Factors
Snowflake reported a $295.6M net loss for the three months ended April 30, 2026 and had a $10.1B accumulated deficit. Management expects continued investment in R&D, employees, acquisitions, and complex new offerings; it also notes that failure to meet minimum commitments with third-party cloud providers could negatively affect results.
Source: 10-Q Item 1A Risk Factors
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 1.39 $B | 1.04 $B | +33.48% |
Cost of Revenue $M | 464.50 $M | 348.79 $M | +33.18% |
Gross Profit $M | 926.45 $M | 693.29 $M | +33.63% |
Operating Income $M | -326.15 $M | -447.26 $M | +27.08% |
Net Income $M | -295.57 $M | -430.09 $M | +31.28% |
EPS (Basic) $ | -0.86 $ | -1.29 $ | +33.33% |
EPS (Diluted) $ | -0.86 $ | -1.29 $ | +33.33% |
R&D Expense $M | 534.94 $M | 472.40 $M | +13.24% |
Answers draw on this SEC filing and the data on this page
Snowflake reported strong 35% revenue growth in Q2 FY2027 to $1.55B and a narrowed net loss of $191.7M, but gross margin dipped and free cash flow was lower than the prior quarter as AI infrastructure costs rose.
Snowflake delivered strong FY2026 revenue growth of 29.2% to $4.68B, improved its gross margin to 67.2% and operating cash flow to $1.22B, but continued to post significant net losses of $1.33B amid heavy R&D investment and rising liabilities.