Snowflake Q4 2026 Earnings: AI-Driven Growth and Record Bookings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 26 2026
0mins
Source: seekingalpha
- Strong Financial Performance: Snowflake reported product revenue of $1.23 billion for Q4 2026, reflecting a 30% year-over-year increase, while remaining performance obligations surged 42% to $9.77 billion, indicating robust future revenue stability driven by AI advancements.
- Significant Customer Growth: The company added 2,332 net new customers over the year, with accounts using AI increasing from 7,300 to over 9,100, showcasing rapid adoption of AI products and strong market demand, further solidifying Snowflake's leadership in data management.
- Strategic Investments and Acquisitions: Snowflake announced the acquisition of Observe for approximately $600 million to enhance its observability platform, alongside a $200 million partnership with OpenAI, demonstrating the company's strategic positioning and expansion capabilities in AI and data analytics.
- Optimistic Future Outlook: The CFO guided Q1 fiscal 2027 product revenue between $1.262 billion and $1.267 billion, representing a 27% year-over-year growth, with full-year revenue expected at approximately $5.66 billion, reflecting the company's confidence in future growth and stable guidance philosophy.
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Analyst Views on SNOW
Wall Street analysts forecast SNOW stock price to rise
33 Analyst Rating
30 Buy
3 Hold
0 Sell
Strong Buy
Current: 241.280
Low
237.00
Averages
278.19
High
312.00
Current: 241.280
Low
237.00
Averages
278.19
High
312.00
About SNOW
Snowflake Inc. is an artificial intelligence (AI) data cloud company. The Company provides a platform which powers the AI data cloud, enabling customers to consolidate data into a single source of truth to drive insights, apply AI to solve business problems, build data applications, and share data and data products. Its cloud-native architecture includes three independently scalable but logically integrated layers across storage, compute, and cloud services. The storage layer ingests massive amounts and varieties of structured, semi-structured, and unstructured data. The compute layer provides dedicated resources to enable users to simultaneously access common data sets for many use cases with minimal latency. The cloud services layer enables users to securely use AI within applications, tools, and processes. Its platform supports a wide range of product categories for customers’ business objectives, including analytics, data engineering, AI, applications and collaboration.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Snowflake Shares Surge 36% After Q1 FY2027 Earnings Beat Expectations
- Strong Earnings Report: Snowflake achieved a 33% year-over-year revenue growth in Q1 FY2027, reaching $1.4 billion, which exceeded market expectations and led to a stock surge of over 36%, reflecting a robust market response and renewed investor confidence.
- Strategic Partnership: The company announced a significant $6 billion, five-year partnership with Amazon Web Services (AWS), which not only strengthens Snowflake's AI-driven enterprise cloud strategy but also expands its market reach, further solidifying its position in the cloud computing sector.
- Upgraded Guidance: Snowflake raised its FY2027 product revenue guidance to $5.84 billion, implying a 31% year-over-year growth, while its net revenue retention rate improved to 126%, indicating strong organic expansion and upsell momentum.
- Competitive Pressures: Despite the impressive performance, analysts remain cautious about the company's long-term outlook, highlighting structural challenges such as high stock-based compensation, GAAP losses, and reliance on competitors' infrastructure, which could weigh on future profitability.
See More
Post-Earnings Declines for CrowdStrike and Broadcom
- Earnings Reaction: CrowdStrike, Broadcom, and Palo Alto Networks all reported solid quarterly results and forward guidance, yet the market's negative response indicates a disconnect between high investor expectations and actual outcomes, leading to stock declines.
- Price Fluctuations: Palo Alto Networks has seen a three-day losing streak, although it remains up 9.3% since May 27, while CrowdStrike is up 7.8% and Broadcom is down 1.7%, reflecting the volatility in market sentiment towards these tech stocks.
- Market Sentiment: Analysts have generally raised price targets for these companies, but the excessive enthusiasm for AI-related stocks led to significant pre-earnings price increases, resulting in adjustments post-earnings that highlight the fragility of market sentiment.
- Investment Strategy: Despite short-term price fluctuations, Jim Cramer maintains a bullish outlook on all three companies, advising investors to buy at the right time, emphasizing that their fundamentals remain strong and that increased market supply may exert short-term price pressure.
See More
Snowflake's Strong Earnings Propel Stock Surge
- Strong Earnings Report: Snowflake's fiscal Q1 revenue increased by 33% year-over-year to $1.39 billion, with non-GAAP earnings per share rising 62.5% to $0.39, surpassing Wall Street expectations and demonstrating robust performance in the cloud data platform sector.
- Significant Customer Growth: The total customer count for Snowflake grew by 38% year-over-year to nearly 14,000, with accounts using AI solutions skyrocketing from 5,200 to 13,600, indicating rapid adoption of AI tools that will drive future revenue growth.
- Improved Revenue Retention: The company's net revenue retention rate reached 126%, indicating increased spending by existing customers on Snowflake's offerings, which further strengthens its revenue pipeline and suggests continued growth ahead.
- Optimistic Future Outlook: Snowflake anticipates a 31% growth in product revenue for fiscal 2027, up from a previous estimate of 27%, with analysts projecting a 54% increase in earnings per share to $1.93, reflecting strong market confidence in its future growth prospects.
See More
Snowflake's Q1 Results Propel Stock Surge Amid AI Growth
- Significant Performance Growth: Snowflake's fiscal Q1 revenue surged 33% year-over-year to $1.39 billion, with non-GAAP earnings per share rising 62.5% to $0.39, exceeding Wall Street expectations and showcasing the company's strong performance in the AI software sector.
- Strong Customer Growth: As of Q1, Snowflake's total customer count increased by 38% year-over-year to nearly 14,000 accounts, indicating rapid adoption of its AI tools and increased spending by existing customers, further solidifying the company's market position.
- Enhanced Future Growth Outlook: Snowflake's remaining performance obligations (RPO) rose 38% year-over-year to $9.2 billion, outpacing revenue growth, with management now forecasting a 31% increase in product revenue for fiscal 2027, up from a previous estimate of 27%, indicating robust future growth potential.
- Valuation Risks to Watch: Despite strong performance, Snowflake's high valuation may limit its stock price upside, prompting investors to carefully assess risks to avoid a scenario similar to Palantir, which, despite impressive growth, has faced stock price pressures.
See More
Middle East Tensions Impact Market Volatility
- Escalating Middle East Tensions: Israeli Prime Minister Netanyahu stated that Israel and the U.S. are prepared to take military action against Iran if necessary, which pushed oil prices higher despite a ceasefire agreement with Lebanon, highlighting the complexity of the situation.
- U.S. Congressional Response: The U.S. House passed a war powers measure to end military involvement in Iran, reflecting growing congressional pushback against the scope and duration of the conflict, although the measure still needs Senate approval and could face a presidential veto.
- Corporate Earnings Impact: Broadcom's shares plummeted nearly 14% in after-hours trading due to weaker-than-expected software revenue and failure to raise its full-year AI chip sales target, negatively impacting Wall Street's recent tech-led rally.
- Bitcoin Market Dynamics: Long-term holders of Bitcoin have begun selling, with approximately $2.4 billion sold in the past two days, which could significantly affect Bitcoin's supply/demand balance, particularly as 26% of the sold Bitcoin was purchased above $90,000.
See More
Investment Comparison: Snowflake vs MongoDB
- Revenue Growth Comparison: Snowflake achieved nearly $4.7 billion in revenue for FY 2026, reflecting a 29.2% increase despite a net loss of $1.3 billion, indicating heavy investment in market expansion; in contrast, MongoDB generated $2.5 billion, a 22.8% growth with a significantly reduced net loss of $71.2 million, showing progress towards breakeven.
- Financial Health Status: Snowflake's debt-to-equity ratio stands at 1.4 with a current ratio of 1.3, demonstrating its ability to cover short-term liabilities; conversely, MongoDB has almost no debt with a 0.0 debt-to-equity ratio and a high current ratio of 4.7, indicating excellent liquidity to manage short-term financial pressures.
- Market Competition Pressure: Snowflake faces intense competition from cloud giants like Amazon and Microsoft, with its reliance on Amazon's infrastructure potentially impacting operations; similarly, MongoDB contends with pressure from legacy database providers like IBM and Oracle, and the adoption of its Atlas product is critical, as any failure could significantly impact revenue.
- Investment Value Assessment: While Snowflake excels in its AI Data Cloud platform, its high valuation may deter investors; MongoDB, with a more reasonable valuation and strong growth potential, particularly in the context of ongoing investments in AI infrastructure, presents an optimistic outlook for future investors.
See More
Snowflake Shares Surge 36% After Q1 FY2027 Earnings Beat Expectations
- Strong Earnings Report: Snowflake achieved a 33% year-over-year revenue growth in Q1 FY2027, reaching $1.4 billion, which exceeded market expectations and led to a stock surge of over 36%, reflecting a robust market response and renewed investor confidence.
- Strategic Partnership: The company announced a significant $6 billion, five-year partnership with Amazon Web Services (AWS), which not only strengthens Snowflake's AI-driven enterprise cloud strategy but also expands its market reach, further solidifying its position in the cloud computing sector.
- Upgraded Guidance: Snowflake raised its FY2027 product revenue guidance to $5.84 billion, implying a 31% year-over-year growth, while its net revenue retention rate improved to 126%, indicating strong organic expansion and upsell momentum.
- Competitive Pressures: Despite the impressive performance, analysts remain cautious about the company's long-term outlook, highlighting structural challenges such as high stock-based compensation, GAAP losses, and reliance on competitors' infrastructure, which could weigh on future profitability.
See More
Post-Earnings Declines for CrowdStrike and Broadcom
- Earnings Reaction: CrowdStrike, Broadcom, and Palo Alto Networks all reported solid quarterly results and forward guidance, yet the market's negative response indicates a disconnect between high investor expectations and actual outcomes, leading to stock declines.
- Price Fluctuations: Palo Alto Networks has seen a three-day losing streak, although it remains up 9.3% since May 27, while CrowdStrike is up 7.8% and Broadcom is down 1.7%, reflecting the volatility in market sentiment towards these tech stocks.
- Market Sentiment: Analysts have generally raised price targets for these companies, but the excessive enthusiasm for AI-related stocks led to significant pre-earnings price increases, resulting in adjustments post-earnings that highlight the fragility of market sentiment.
- Investment Strategy: Despite short-term price fluctuations, Jim Cramer maintains a bullish outlook on all three companies, advising investors to buy at the right time, emphasizing that their fundamentals remain strong and that increased market supply may exert short-term price pressure.
See More
Snowflake's Strong Earnings Propel Stock Surge
- Strong Earnings Report: Snowflake's fiscal Q1 revenue increased by 33% year-over-year to $1.39 billion, with non-GAAP earnings per share rising 62.5% to $0.39, surpassing Wall Street expectations and demonstrating robust performance in the cloud data platform sector.
- Significant Customer Growth: The total customer count for Snowflake grew by 38% year-over-year to nearly 14,000, with accounts using AI solutions skyrocketing from 5,200 to 13,600, indicating rapid adoption of AI tools that will drive future revenue growth.
- Improved Revenue Retention: The company's net revenue retention rate reached 126%, indicating increased spending by existing customers on Snowflake's offerings, which further strengthens its revenue pipeline and suggests continued growth ahead.
- Optimistic Future Outlook: Snowflake anticipates a 31% growth in product revenue for fiscal 2027, up from a previous estimate of 27%, with analysts projecting a 54% increase in earnings per share to $1.93, reflecting strong market confidence in its future growth prospects.
See More
Snowflake's Q1 Results Propel Stock Surge Amid AI Growth
- Significant Performance Growth: Snowflake's fiscal Q1 revenue surged 33% year-over-year to $1.39 billion, with non-GAAP earnings per share rising 62.5% to $0.39, exceeding Wall Street expectations and showcasing the company's strong performance in the AI software sector.
- Strong Customer Growth: As of Q1, Snowflake's total customer count increased by 38% year-over-year to nearly 14,000 accounts, indicating rapid adoption of its AI tools and increased spending by existing customers, further solidifying the company's market position.
- Enhanced Future Growth Outlook: Snowflake's remaining performance obligations (RPO) rose 38% year-over-year to $9.2 billion, outpacing revenue growth, with management now forecasting a 31% increase in product revenue for fiscal 2027, up from a previous estimate of 27%, indicating robust future growth potential.
- Valuation Risks to Watch: Despite strong performance, Snowflake's high valuation may limit its stock price upside, prompting investors to carefully assess risks to avoid a scenario similar to Palantir, which, despite impressive growth, has faced stock price pressures.
See More
Middle East Tensions Impact Market Volatility
- Escalating Middle East Tensions: Israeli Prime Minister Netanyahu stated that Israel and the U.S. are prepared to take military action against Iran if necessary, which pushed oil prices higher despite a ceasefire agreement with Lebanon, highlighting the complexity of the situation.
- U.S. Congressional Response: The U.S. House passed a war powers measure to end military involvement in Iran, reflecting growing congressional pushback against the scope and duration of the conflict, although the measure still needs Senate approval and could face a presidential veto.
- Corporate Earnings Impact: Broadcom's shares plummeted nearly 14% in after-hours trading due to weaker-than-expected software revenue and failure to raise its full-year AI chip sales target, negatively impacting Wall Street's recent tech-led rally.
- Bitcoin Market Dynamics: Long-term holders of Bitcoin have begun selling, with approximately $2.4 billion sold in the past two days, which could significantly affect Bitcoin's supply/demand balance, particularly as 26% of the sold Bitcoin was purchased above $90,000.
See More
Investment Comparison: Snowflake vs MongoDB
- Revenue Growth Comparison: Snowflake achieved nearly $4.7 billion in revenue for FY 2026, reflecting a 29.2% increase despite a net loss of $1.3 billion, indicating heavy investment in market expansion; in contrast, MongoDB generated $2.5 billion, a 22.8% growth with a significantly reduced net loss of $71.2 million, showing progress towards breakeven.
- Financial Health Status: Snowflake's debt-to-equity ratio stands at 1.4 with a current ratio of 1.3, demonstrating its ability to cover short-term liabilities; conversely, MongoDB has almost no debt with a 0.0 debt-to-equity ratio and a high current ratio of 4.7, indicating excellent liquidity to manage short-term financial pressures.
- Market Competition Pressure: Snowflake faces intense competition from cloud giants like Amazon and Microsoft, with its reliance on Amazon's infrastructure potentially impacting operations; similarly, MongoDB contends with pressure from legacy database providers like IBM and Oracle, and the adoption of its Atlas product is critical, as any failure could significantly impact revenue.
- Investment Value Assessment: While Snowflake excels in its AI Data Cloud platform, its high valuation may deter investors; MongoDB, with a more reasonable valuation and strong growth potential, particularly in the context of ongoing investments in AI infrastructure, presents an optimistic outlook for future investors.
See More
