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Research Alert: Snow Beats Expectations In Q1, Lifts Fy 27 Guidance As Ai Momentum Continues

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

SNOW posted Q1 FY27 sales of $1.39B (+33% Y/Y), beating consensus $1.32B, with product revenue of $1.33B (+34%, accelerating from +30% in Q4). Non-GAAP EPS of $0.39 (+63%) exceeded Street expectations of $0.32, while operating margin of 11.9% surpassed 9% guidance. The company raised Q2 product revenue guidance to $1.415-1.420B (implying total revenue of about $1.49B vs. $1.44B consensus) and lifted FY27 product revenue guidance to $5.84B from $5.66B, with operating margin guidance increased to 13.5% from 12.5%. We find these results comforting amid recent software selling pressures, as SNOW continues positioning as a net beneficiary of rapidly improving AI capabilities. Growth metrics stabilized with NRR at 126% (+100 bps Q/Q, +200 bps Y/Y) and AI product accounts surging to 13,600 from 9,100 (+49% Q/Q). Strategic partnerships expanded with a $6B AWS agreement and deepened OpenAI collaboration. We expect margin outperformance to continue as costs remain below feared levels while revenue exceeds expectations.

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