Snowflake Inc. reported strong Q1 FY2027 results, surpassing analyst expectations with EPS of $0.39 (forecast $0.32) and revenue of $1.39 billion (forecast $1.32 billion). Despite the earnings beat, Snowflake's stock fell 1.32% in after-hours trading to $175.57.
Product revenue reached $1.334 billion, up 34% year-over-year, driven by AI solutions and strong core platform growth. The company's AI products, including Cortex Code and Snowflake Intelligence, are gaining traction.
Despite the positive earnings surprise, the stock decline reflects market concerns and profit-taking. The stock is down 29.5% over six months and 20% year-to-date, with a market cap of $60.3 billion. According to Bond.az analysis, the stock appears undervalued at current levels.
Snowflake raised full-year product revenue guidance to $5.84 billion (31% YoY growth) and Q2 product revenue forecast to $1.415-$1.42 billion (30% growth). Non-GAAP operating margin guidance increased from 12.5% to 13.5%.
CEO Frank Slootman highlighted AI investments driving revenue uplift, while CFO Mike Scarpelli expressed confidence in sustaining momentum.
