Snowflake delivers a cloud-native data platform that lets companies store, analyze, and share vast amounts of data across Amazon Web Services, Microsoft Azure, and Google Cloud, with tools like Snowpark for AI and data engineering. Founded in 2012 by three data-warehouse engineers, including two former Oracle architects, it runs on a design that separates storage from compute so users only pay for what they use. The name comes from its first investor and CEO, a nod to the team's love of skiing — and to the idea that no two workloads are alike, just like snowflakes.
Q1 FY2027 revenue rose 33.5% to $1,391.0M as operating loss narrowed to $326.2M
ticked back up to 126% after a multi-year slide. rose 33.5% to $1,391.0M and held at 66.6%, with the operating loss narrowing to $326.2M as office-exit charges fell $88.8M. Growth re-accelerated above last year's pace, but consumption-based revenue still depends on customer usage that has been slowing.
Key takeaways
rose to 126% from 124% a year earlier, ending a decline that had taken it from 158% in FY2023 to 125% by Q3 FY2026.
Product rose 34% to $1,334.3M, driven by increased consumption from existing customers under capacity arrangements.
Operating loss narrowed to $326.2M from $447.3M a year earlier, primarily because asset charges related to office exits fell $88.8M.
Section summaries
Management's Discussion and Analysis
Product revenue grew 34% YoY to $1.33B driven by existing customer consumption, while operating loss narrowed on lower impairment charges.
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Product rose 34% to $1,334.3M, driven by increased consumption from existing customers, with at 126%.
rose 33.5% to $1,391.0M, up from 25.7% growth in Q1 FY2026, while was flat at 66.6% as AI/GPU cloud costs offset personnel .
was $232.8M and the company repurchased $300M of stock, leaving $4.4B in cash and investments; it also committed to a $6.0B minimum cloud spend over five years.
R&D expense rose 13% to $534.9M on AI infrastructure and personnel, and sales and marketing grew 28% to $589.0M on higher headcount and commissions.
What changed
Q1 FY2027 growth was 33.5%, above the 25.7% flagged as the deceleration floor to watch from Q1 FY2026 — the re-acceleration seen at 31.8% in Q2 FY2026 partly sustained.
printed 126%, reversing the prior decline flagged to watch; it had fallen to 124% in Q1 FY2026 and held at 125% through Q3 FY2026.
R&D expense rose 13% to $534.9M, the first full quarter reflecting discontinued software development cost capitalization under ASC 985-20 flagged after Q2 FY2026; the impact on operating loss is now visible as a narrower but still wide loss.
were not updated this quarter; the last stated figure was $9.8B at FY2026 year-end with 46% expected to convert within twelve months.
Since the FY2026 10-K, the company amended a cloud infrastructure agreement committing to $6.0B cumulative minimum spend from April 2026, and legal proceedings added two securities class actions filed in February and May 2026.
What to watch
Next quarter's print to confirm whether 126% holds or resumes its multi-year decline.
Q2 FY2027 growth rate to see if the 33.5% re-acceleration sustains or reverts toward the mid-20s% range.
Conversion of the $9.8B at the stated 46% within twelve months, unupdated since FY2026.
Full impact of the $6.0B cloud minimum spend commitment on and starting April 2026.
Total remained flat at 67% as higher cloud infrastructure costs from AI/GPU usage offset personnel cost and volume discounts.
Operating loss narrowed to $326.2M from $447.3M, primarily due to an $88.8M decrease in asset charges related to office exits.
Sales and marketing expense grew 28% to $589.0M on higher headcount and commissions, while R&D rose 13% to $534.9M on AI infrastructure and personnel costs.
was $232.8M; the company held $4.4B in cash and investments and repurchased $300M of stock during the quarter.
The company amended a cloud infrastructure agreement, committing to a $6.0B cumulative minimum spend over five years starting April 2026.
Quantitative and Qualitative Disclosures About Market Risk
Interest-rate sensitivity rose sharply on a larger investment portfolio; FX and strategic-investment risks remain secondary.
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A hypothetical 100 rate move would change the market value of cash equivalents and investments by ~$31M as of April 30, 2026, up from ~$12M as of January 31, 2026.
The $2.3B convertible notes issued in September 2024 carry no regular interest, so the company reports no economic interest-rate exposure on the notes themselves.
Most is in USD; a 10% shift in the dollar is not expected to materially affect operating results, though a stronger dollar could slow international consumption.
The company uses foreign-currency forward contracts (maturity ≤15 months) to hedge net monetary assets/liabilities and a portion of forecasted non-USD operating expenses.
Strategic investments of $353.5M are mainly non-marketable equity securities measured under the , exposing results to private-market volatility and .
Company states no current proceeding would materially harm its business, then details securities, data-breach, and copyright class actions.
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The company believes no pending legal proceeding would individually or collectively have a material adverse effect on its business, results, or financial condition.
A February 2024 securities class action (and five related derivative suits) alleges Exchange Act violations; a third amended complaint was filed in April 2026 and a is due June 3, 2026.
A June 2024 data-breach class action, consolidated into in Montana, survived motions to dismiss in October 2025; the case is now in discovery and a parallel Canadian class action is pending.
A November 2025 copyright class action alleges unauthorized use of copyrighted works to train the company's large language model; the case is in discovery.
Two additional securities class actions were filed in February and May 2026, alleging Exchange Act violations; the earlier case is stayed pending lead-plaintiff appointment, and damages in all securities matters remain unspecified.
Snowflake faces risks from consumption-based revenue unpredictability, intense cloud/AI competition, cybersecurity incidents, and AI regulatory uncertainty.
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recognition depends on customer consumption, not subscriptions, limiting visibility and causing forecast uncertainty; growth has already slowed.
Competition is intensifying from major cloud providers (AWS, Azure, GCP) and AI entrants, exacerbated by open data formats reducing customer lock-in.
A May 2024 cyberattack campaign exploited customers' failure to implement MFA, leading to ongoing lawsuits, regulatory inquiries, and reputational harm.
Rapidly evolving AI regulations (e.g., EU AI Act) and intellectual property risks around AI training data and model outputs create significant legal and compliance exposure.
The company has a history of net losses ($295.6M in Q1 FY2027) and an of $10.1B, with substantial ongoing investments needed for AI and platform development.
Reliance on public cloud infrastructure from competitors (AWS, Azure, GCP) creates cost, operational, and competitive risks, including potential unfavorable pricing or privileged competing products.