Snowflake Stock Soars 9.51% on Strong Q1 Earnings

On May 22, 2025, Snowflake's stock surged by 9.51% in pre-market trading, reflecting strong investor confidence in the company's recent performance.

Snowflake's first-quarter product revenue rose by approximately 26% to $996.8 million, surpassing estimates of 21.5% growth to $959.2 million. The company's total revenue for the quarter reached $1.04 billion, a 26% increase that also exceeded expectations. Adjusted net income stood at $87.3 million, or 24 cents per share, marking a significant rise.

Snowflake's earnings and revenue for the first quarter surpassed Wall Street targets, with the company reporting earnings and revenue surprises of 9.09% and 3.74%, respectively. The company's June quarter product revenue guidance also came in above expectations, contributing to the positive market sentiment.

Key metrics such as remaining performance obligations and the number of customers with trailing 12-month product revenue greater than $1 million also showed strong performance. The company's remaining performance obligations stood at $6.70 billion, compared to the average estimate of $6.55 billion. The number of customers with trailing 12-month product revenue greater than $1 million was 606, slightly above the two-analyst average estimate of 603.

Snowflake's strong financial performance and positive outlook have driven investor optimism, leading to a significant increase in its stock price. The company's ability to exceed revenue and earnings estimates, along with its robust product revenue growth, has positioned it favorably in the market.