Overview
- Snowflake reported Q1 FY2027 product revenue of $1.334 billion, a 33.9% year-over-year rise that topped consensus by about 5.3%.
- Management said Cortex Code (CoCo), which reached more than 7,100 customer accounts since becoming generally available in February 2026, was the single largest driver of the guidance upgrade.
- The company raised full-year revenue guidance and boosted operating-margin guidance by 100 basis points while keeping product gross margin guidance at 75%.
- Snowflake disclosed expanded partnerships with AWS and OpenAI and confirmed plans to acquire AI firm Natoma, though financial terms were not released.
- Analysts pushed price targets higher and the stock jumped after the report, but management warned that rising AI infrastructure costs and execution risks could strain margins as CoCo scales.