Snowflake 2026 Q1 Earnings Revenue Climbs 25.7% Amid Growing Losses

Snowflake (SNOW) reported its fiscal 2026 Q1 earnings on May 30th, 2025. The company exceeded revenue expectations with total revenue reaching $1.04 billion, an increase of 25.7% from the previous year. However, losses widened significantly, indicating ongoing financial challenges. Snowflake raised its guidance for the full fiscal year, projecting product revenue at $4.325 billion, reflecting a positive outlook amid competitive pressures. This optimistic guidance suggests confidence in maintaining growth momentum through strategic investments and product innovation.

Revenue
The total revenue for Snowflake surged by 25.7% to $1.04 billion in the first quarter of fiscal 2026, compared to $828.71 million in the same quarter last year. Product revenue was a major contributor, generating $996.81 million, while professional services and other revenue added $45.26 million, culminating in a total revenue of $1.04 billion.

Earnings/Net Income
Snowflake's earnings per share worsened, showing a loss of $1.29 per share in 2026 Q1 compared to a $0.95 loss per share in 2025 Q1, signaling a 35.8% increase in losses. The net loss expanded to $-429.95 million, a 35.3% increase from the $-317.82 million loss in the previous year. This reflects a poor EPS performance amid ongoing financial headwinds.

Price Action
The stock price of Snowflake has edged up 1.72% during the latest trading day, increased by 1.23% over the most recent week, and surged 28.26% month-to-date.

Post-Earnings Price Action Review
The strategy of buying SNOW when there's a revenue miss and holding for 30 days resulted in poor performance. Backtesting showed a significant loss of -39.15%, with an excess return of -67.65% and a negative Sharpe ratio of -0.21. This strategy also faced a maximum drawdown of -72.63% and high volatility at 61.38%, indicating substantial risk and potential losses. Investors following this approach experienced considerable financial setbacks, highlighting the challenges of timing the market with Snowflake's earnings performance. Overall, the strategy demonstrated significant inefficiency and risk, as evidenced by the historical performance metrics.

CEO Commentary
Frank Slootman, CEO of Snowflake, expressed optimism regarding the company's performance, highlighting strong demand for its data analytics services as enterprises prioritize investments in artificial intelligence. He noted that the integration of AI into Snowflake's cloud offerings has allowed customers to build and run advanced AI models, contributing to significant revenue growth. Slootman acknowledged ongoing challenges, particularly in customer acquisition and competition but emphasized the company's strategic investments in new product development and international expansion, which position Snowflake well for future growth. He conveyed confidence in maintaining momentum, particularly as customer workloads shift increasingly to the cloud.

Guidance
Snowflake expects product revenue for the upcoming quarter to be in the range of $1.035 billion to $1.040 billion, exceeding analyst estimates. For the full fiscal year 2026, the company has raised its product revenue target to $4.325 billion, reflecting a positive outlook driven by strong demand and customer adoption. The adjusted earnings per share for the first quarter is anticipated to be 24 cents, above previous expectations, signaling confidence in continued financial performance amidst competitive pressures.

Additional News
Snowflake has been actively expanding its strategic product offerings and partnerships. Recently, the company previewed an updated navigation menu for Snowsight, aimed at enhancing user experience by organizing tools under key categories. This rollout is gradual and may not be available to all accounts immediately. Additionally, Snowflake's collaboration with Microsoft has been highlighted, integrating OpenAI models directly into its Cortex AI platform. This partnership allows Snowflake to enhance its AI capabilities and offer advanced solutions to enterprise customers, signaling a strategic focus on leveraging AI to drive growth and maintain a competitive edge in the cloud-computing market.