Shares of Snowflake (SNOW) surged in after-hours trading after the data warehousing giant reported first-quarter results for Fiscal Year 2026. Adjusted earnings of $0.26 per share beat analysts’ consensus estimate of $0.21 per share. Furthermore, the company saw a 25.5% increase in revenue to $1.04 billion, which beat estimates of $1.01 billion. This could be attributable to a 34% increase in remaining performance obligations to $6.7 billion and a net revenue retention rate of 124%.
Confident Investing Starts Here:
- Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
- Receive undervalued, market resilient stocks straight to you inbox with TipRanks' Smart Value Newsletter
In addition, Snowflake now has 606 customers that are generating over $1 million in product revenue over the past 12 months, which was a 27% increase from last year and an increase from 580 customers during the previous quarter, as per the image below. The company also serves 754 Forbes Global 2000 clients, equating to 4% year-over-year growth.
Outlook for 2026
Looking forward, the company anticipates its product revenue to come in at $4.325 billion in Fiscal Year 2026, which was above the previous guidance of $4.28 billion. On the other hand, for the upcoming quarter, Snowflake expects its product revenue to range between $1.035 billion and $1.040 billion. This was also higher than the previous guidance of $955 million to $960 million. Furthermore, it anticipates an 8% operating margin for the full year.
Is SNOW a Good Buy Right Now?
Turning to Wall Street, analysts have a Strong Buy consensus rating on SNOW stock based on 32 Buys, six Holds, and zero Sells with an average price target of $204.97 per share. However, it’s worth noting that estimates will likely change following today’s earnings report.
Looking for a trading platform? Check out TipRanks' Best Online Brokers , and find the ideal broker for your trades.
Report an Issue