Snowflake guides $1.262-$1.267B Q1 product revenue

Snowflake is set to report first-quarter fiscal 2027 results on May 27, 2026, and the setup going into the release is unusually tight. The company has already told investors it will report after the market close that day, according to its investor relations site. The key figure around the release is product revenue, the metric Snowflake and Wall Street use most closely to track usage growth in its cloud data business. Ahead of the report, outside previews have pointed to a first-quarter product revenue range of $1.262 billion to $1.267 billion and full-year product revenue of about $5.66 billion, while options traders have priced a potential 12% move in the shares around the release. ### Why is product revenue the number investors keep watching? Snowflake’s own reporting puts product revenue at the center of the story. In its fourth-quarter fiscal 2026 results, the company said product revenue was $1.23 billion, up 30% from a year earlier, while total revenue was $1.28 billion. The company also reported a 125% net revenue retention rate, 733 customers with trailing 12-month product revenue above $1 million, and remaining performance obligations of $9.77 billion. (investors.snowflake.com) The distinction matters because Snowflake’s model is consumption-based. Customers do not just pay a fixed subscription and leave the number static; usage of storage, compute and data workloads drives the product revenue line. That is why even a relatively narrow guidance range can carry weight in the stock. This interpretation is reflected in analyst coverage ahead of the report, including Bank of America’s focus on execution and AI-related demand. (investors.snowflake.com) ### How big would the guided range be versus the last quarter? The previewed first-quarter range of $1.262 billion to $1.267 billion would sit above the $1.23 billion Snowflake posted for the fourth quarter of fiscal 2026. The implied year-over-year growth rate in those previews is about 27%, compared with the 30% growth Snowflake reported in the prior quarter. (thestreet.com) That comparison is one reason the release matters. A result near that range would still show large-scale growth, but investors will be looking at whether management’s commentary points to steadier demand, stronger AI-related usage, or further moderation from the pace Snowflake posted in the January-ended quarter. Bank of America, cited by TheStreet, said confidence has increased around Snowflake’s AI business intelligence opportunity, and TheStreet said more than 9,100 accounts were using Snowflake AI features as of fiscal year-end 2026. (investors.snowflake.com) ### Where does the full-year number fit? The outside preview of about $5.66 billion for fiscal 2027 product revenue gives investors a benchmark for the full year. Snowflake’s last reported quarter also included company guidance for fiscal 2027 operating metrics, including 75% product gross margin and a 12.5% operating margin, according to Investing.com’s earnings summary page. (thestreet.com) The full-year product revenue target matters because it frames whether first-quarter performance is seen as a one-off print or part of a larger annual growth path. Analysts and investors will also compare that target with Snowflake’s customer expansion metrics, large-customer count and remaining performance obligations. ### Why are options traders bracing for a double-digit move? (investing.com) Investing.com reported on May 21 that options data compiled by the site implied Snowflake shares could move about 12% when the company reports earnings on May 27 after the market close. The same site’s stock page showed Snowflake shares at $164.05 on May 21. A move of that size would reflect how tightly the stock is linked to management’s growth outlook rather than just the headline revenue number. (investors.snowflake.com) Snowflake is reporting into a market still focused on whether AI demand is translating into durable enterprise software spending, and whether usage growth can hold near recent levels. That framing has also appeared in analyst coverage ahead of the report. (uk.investing.com) ### What happens next on May 27? Snowflake said it will announce first-quarter fiscal 2027 financial results on May 27, 2026. Investors will be looking for the product revenue figure, any update to full-year guidance, and management commentary on customer consumption, AI feature adoption and large-account growth. The company’s investor relations page lists the May 27 release as the next scheduled reporting milestone. (investors.snowflake.com) (thestreet.com)