Snowflake Soars 8.75% on Strong Q1 Earnings

On May 22, 2025, Snowflake's stock surged by 8.75% in pre-market trading, reflecting a strong start to the day.

Snowflake reported impressive first-quarter results for Fiscal Year 2026, with adjusted earnings of $0.26 per share, surpassing analysts' estimates of $0.21 per share. The company's revenue increased by 25.5% to $1.04 billion, exceeding expectations of $1.01 billion. This growth can be attributed to a 34% increase in remaining performance obligations to $6.7 billion and a net revenue retention rate of 124%. Additionally, Snowflake now has 606 customers generating over $1 million in product revenue over the past 12 months, a 27% increase from the previous year.

Looking ahead, Snowflake anticipates its product revenue to reach $4.325 billion in Fiscal Year 2026, higher than the previous guidance of $4.28 billion. For the upcoming quarter, the company expects product revenue to range between $1.035 billion and $1.040 billion, also exceeding previous estimates. Snowflake's strong financial performance and optimistic outlook have contributed to its stock's recent surge.