From Yahoo Finance: 2025-05-22 16:55:00

Snowflake Inc. (NYSE: SNOW) reported FQ1 2026 results with total revenue of $1.04 billion, exceeding expectations. Product revenue at $996.8 million beat consensus by over 3%. RPO stood at $6.7 billion at the end of the quarter, ahead of expectations, indicating future revenue under contract.

Snowflake saw an impressive operating performance with adjusted operating margin expanding nearly 450 basis points year-over-year to 9%. EPS grew 71% to $0.24, surpassing consensus by over 14%. The company generated an adjusted free cash flow of $206 million in the quarter.

The company added 451 new customers in the quarter, bringing the total customer base to 11,578. Net revenue retention rate remained above 120% with customer quality improving. 27% year-over-year growth in customers accounting for over $1.0 million in product revenue.

Snowflake provided upbeat guidance for the next quarter and full year, expecting Product revenue for Q2 to surge 25% year-over-year to $1.04 billion. Full-year Product revenue guidance was raised to $4.33 billion. The management expects to maintain an operating margin around 8% for the next year.

Analyst Kirk Materne praised Snowflake’s guidance raise amid macroeconomic uncertainty, reflecting positively on near-term demand. Snowflake Inc. (NYSE: SNOW) is a cloud-based data platform enabling organizations to store, analyze, and share data efficiently. The Data Cloud supports various workloads, driving innovation and insights.

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Read more: Snowflake (SNOW) Reports Strong Q1, Raises Full-Year Outlook