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Snowflake Reports AI‑Led Revenue Inflection and Shares Surge

The company says new AI tools are pulling more workloads onto its platform, prompting investors to demand consumption metrics to judge whether higher monetization will hold.

Overview

  • Snowflake posted a sharp reacceleration in product revenue, with product sales rising 34% year over year to $1.33 billion and the company calling that its strongest sequential dollar growth.
  • Management raised forward targets, setting second‑quarter revenue guidance at about $1.415–$1.42 billion and lifting full‑year product revenue guidance to $5.84 billion.
  • Profitability improved as non‑GAAP operating margin expanded to 12% and adjusted EPS rose to $0.39 while the net loss narrowed to $295 million.
  • Customer and contract trends strengthened with net revenue retention at 126%, remaining performance obligations up 38% to $9.21 billion, and 616 net new customers added.
  • Markets responded with a large rally but investors and analysts are now focused on near‑term consumption data and partner integrations shown at the upcoming Summit to test whether AI-driven usage will sustain the gains.