Snowflake Inc. (NYSE: SNOW) reported product revenue of $1.33 billion for the first quarter of fiscal 2027, ended April 30, 2026, representing 34% year-over-year growth and the strongest sequential dollar growth in company history.
Total revenue for the quarter reached $1.39 billion, up 33% from $1.04 billion in the same period a year earlier. The results extend a run of accelerating top-line growth for the Menlo Park, California-based data cloud company, which competes in the enterprise data platform market alongside cloud infrastructure providers and specialist analytics vendors.
#Customer Spending Accelerates Across Enterprise Base
The number of customers with trailing 12-month product revenue exceeding $1 million rose to 779, up 29% year-over-year. Snowflake said 46 customers crossed that threshold in Q1, compared to 26 in the same quarter a year ago. The company added 616 net new customers in the quarter, a 38% year-over-year increase, bringing its Forbes Global 2000 customer count to 813.
Net revenue retention rate stood at 126%, indicating that existing customers continued to expand their consumption on the platform.
#AI Products and Platform Adoption Drive Revenue Growth
More than 13,600 accounts used Snowflake AI capabilities in the quarter, based on a weekly average over the final four weeks of the period. Accounts using Snowflake Intelligence more than doubled quarter-over-quarter. Cortex Code, a code generation tool, was in use across more than 7,100 accounts.
"Snowflake delivered a milestone quarter, with product revenue of $1.33 billion, up 34% year-over-year, marking the strongest sequential dollar growth in our history," said Sridhar Ramaswamy, CEO of Snowflake, in the earnings release. "AI continues to be a powerful tailwind for Snowflake, and Q1 marks a clear inflection point in that journey."
Remaining performance obligations, a measure of contracted future revenue not yet recognized, reached $9.21 billion, up 38% year-over-year.
#Guidance Raised for Full Fiscal Year 2027
Snowflake raised its full-year fiscal 2027 product revenue guidance to $5.84 billion, representing 31% year-over-year growth, up from prior guidance of $5.66 billion, or 27% growth. The company projects non-GAAP operating margin of 13.5% for the full year, compared to a prior forecast of 12.5%.
For the second quarter of fiscal 2027, Snowflake guided product revenue of $1.415 billion to $1.420 billion, representing 30% year-over-year growth.
On a GAAP basis, the company reported an operating loss of $326.2 million for the quarter, compared to an operating loss of $447.3 million in Q1 fiscal 2026. On a non-GAAP basis, operating income was $165.8 million, representing an 11.9% non-GAAP operating margin. Adjusted free cash flow was $265.5 million, or 19.1% of revenue.
During the quarter, Snowflake expanded its partnership with Amazon Web Services through a new $6 billion multi-year agreement and deepened collaboration with OpenAI. In May 2026, the company signed a definitive agreement to acquire Natoma, an enterprise Model Context Protocol platform for AI agents.
The company said it delivered more than 20% more product capabilities in the quarter compared to a year ago.
Snowflake's guidance is subject to risks including macroeconomic conditions, competition in the enterprise AI and data platform market, customer consumption patterns, and the successful integration of acquisitions. The company noted that customers' ability to manage the timing of platform consumption means product revenue in any given period is not necessarily indicative of future trends. Additional risks are detailed in the company's filings with the Securities and Exchange Commission.
Management projected 31% full-year product revenue growth, though execution risks, competitive pressure from cloud platform vendors, and variability in AI-driven consumption patterns remain key factors affecting the outlook.