Snowflake Lifts FY2026 Outlook to $5.84 Billion as Q1 Product Revenue Jumps 34%

3 articles · Updated · Fortune · May 31

$1.33 billion in fiscal Q1 product revenue marked Snowflake’s fastest growth in several quarters, with net revenue retention edging up to 126% and remaining performance obligations rising 38% to $9.21 billion.
AI demand drove the reacceleration rather than disruption fears, as customers pulled more data and workloads onto Snowflake’s platform and newer products such as Snowflake Intelligence and Cortex Code gained traction.
Management raised full-year product revenue guidance to $5.84 billion from $5.66 billion, while adjusted operating margin improved to 12% and adjusted EPS climbed to $0.39 from $0.24.
Shares surged about 35% after the report and are now up roughly 16.5% in 2026, but the rebound has pushed Snowflake to about 17 times sales even as it remains unprofitable on a GAAP basis.
The results also bolster a broader software-AI read-through, with Datadog and MongoDB posting stronger growth and higher outlooks, though much of the sector’s easiest rebound may already be over.