TLDR
- Snowflake posted Q1 product revenue of $1.33B, up 34% year-over-year, beating its own forecast of $1.26B
- EPS came in at $0.39, beating the $0.32 consensus estimate; full-year guidance raised to $5.84B in product revenue
- Nearly all of Snowflake’s 13,912 customers are now using at least one AI product
- Wall Street has a consensus “Moderate Buy” rating with an average price target of ~$284, implying around 14% upside from current levels
- Director Frank Slootman sold 400,000 shares for ~$93.4M under a pre-arranged 10b5-1 plan on May 28
Snowflake (SNOW) stock is trading around $256, up more than 7% on Monday and more than double its 52-week low of $118.30 set in April. The move comes after the company posted strong fiscal Q1 2027 results and lifted its full-year outlook.
Q1 product revenue came in at $1.33 billion, ahead of management’s own guidance of $1.26 billion and up 34% from the same quarter last year. That’s an acceleration from fiscal 2026’s full-year product revenue growth of 29%.
EPS of $0.39 beat the analyst consensus of $0.32 by $0.07. Total revenue for the quarter was $1.39 billion, beating estimates of $1.32 billion and up 33.5% year-over-year.
Following the beat, management raised its full-year product revenue guidance for fiscal 2027 to $5.84 billion, up from the prior forecast of $5.66 billion.
AI Adoption Driving the Numbers
Snowflake’s AI platform, Cortex AI, lets enterprises plug their internal data into large language models from providers like OpenAI and Anthropic to build custom AI tools. The platform includes products like Document AI and Cortex Code, which uses natural language prompts to help developers build data workflows.
Of Snowflake’s 13,912 total customers at quarter-end, 13,600 were using at least one AI product — practically the entire customer base.
The company also has a $6 billion partnership with AWS, which analysts see as a key driver of enterprise AI adoption on the platform.
Several analysts raised price targets after the earnings report. Needham raised its target from $200 to $300 and maintained a “Buy.” Piper Sandler set a $300 target. Citizens JMP kept a “Market Outperform” with a $325 target. The consensus target across 43 analysts tracked by The Wall Street Journal sits at around $283–$284, implying roughly 14% upside from current prices.
Profitability Remains a Concern
Despite the strong top-line numbers, Snowflake recorded a GAAP net loss of $295.5 million in Q1. That’s a 31% improvement from a year ago, but the company is still far from GAAP profitability.
On a non-GAAP basis, Snowflake was profitable at $148 million — but that figure excludes $433.6 million in stock-based compensation. For context, the company paid out over $1.7 billion in stock-based compensation across all of fiscal 2026.
The company’s valuation is also drawing attention. SNOW trades at a price-to-sales ratio of 16.9, putting it well above cloud peers like Microsoft, Amazon, and Alphabet — all of which are also growing cloud revenue quickly. Alphabet’s Google Cloud grew 63% last quarter; Microsoft Azure grew 40%.
On the insider front, Director Frank Slootman sold 400,000 shares for a total of approximately $93.4 million on May 28, under a pre-arranged Rule 10b5-1 trading plan. The sale reduced his position by 91.31%, leaving him with 38,046 shares. Director Michael L. Speiser also sold 403 shares on May 1 at $141.59.
Separately, Black Swift Group LLC cut its Snowflake stake by 78% in Q4, selling 12,910 shares. Institutional ownership overall stands at 65.10%.
The stock’s 50-day moving average is $156.69 and its 200-day moving average is $190.40. SNOW’s 52-week high is $280.67.
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