Snowflake Inc. (SNOW) Announced Q1 2027 Earnings on May 27, 2026, Reporting "Product revenue came in at $1.334 billion with growth accelerating to 34% year-over-year"

Financial Results For the first quarter of fiscal 2027, Snowflake reported product revenue of $1.334 billion, representing 34% year-over-year growth.The company achieved a net revenue retention rate of 126%.First quarter non-GAAP operating margin expanded over 300 basis points year-over-year to 12%.Remaining performance obligations grew 38% year-over-year in the first quarter.During the quarter, the company used approximately $300 million to repurchase 1.7 million shares and ended the first quarter with $4.4 billion in cash, cash equivalents, short-term and long-term investments.Business Updates Snowflake added 616 net new customers in the first quarter, an increase of 38% year-over-year, bringing the total to 13,912 customers.Management highlighted that their AI products are seeing the fastest adoption of any new products in the company's history.Accounts using Snowflake Intelligence more than doubled quarter-over-quarter, and Cortex Code is currently in use with more than 7,100 accounts.The company also announced the intended acquisition of Natoma, which will bring 20 employees to Snowflake.Partnerships During the first quarter, Snowflake entered into a new 5-year, $6 billion contract with AWS, noting that the company surpassed $7 billion in lifetime AWS Marketplace sales.Additionally, management announced an expanding $200 million partnership with Open AI and brought a joint capability from their landmark partnership with SAP to general availability.Forward Guidance For the second quarter of fiscal 2027, Snowflake expects product revenue between $1.415 billion and $1.42 billion, representing 30% year-over-year growth, with a non-GAAP operating margin of 12.5%.For the full fiscal year 2027, management increased their product revenue guidance to $5.84 billion, representing 31% year-over-year growth.Full-year guidance also includes a non-GAAP product gross margin of 75% and an increased non-GAAP operating margin of 13.5%.The company reiterated its full-year non-GAAP adjusted free cash flow margin guidance of 23%, which includes an approximate 150 basis point headwind related to the Observe acquisition.