Overview
- Snowflake reported results after the market close on Sept. 2, delivering $1.55 billion in revenue and $0.62 non‑GAAP EPS that topped analyst expectations.
- Management raised FY27 product‑revenue guidance to $6.07 billion and lifted the non‑GAAP operating margin target to 14.5%, signaling stronger-than-expected profitability.
- Company metrics show customer health that supports expansion, including 126% net revenue retention, $9 billion in remaining performance obligations, 692 net new customers, and 828 customers spending more than $1 million annually.
- Snowflake said AI products materially contributed to growth, with CoCo surpassing about 9,100 accounts and CoWork about 5,800, and management estimating AI drove roughly half of the quarter's acceleration.
- The earnings beat triggered a roughly 17% one‑day stock rally followed by a short profit-taking pullback and steep analyst re‑ratings, while investors remain cautious because of elevated valuation, about 5.56% short interest, and strong competition from cloud and data rivals.