Executive Summary

Q1 FY26 delivered 26% YoY product revenue growth to $996.8M and total revenue of $1.042B; non-GAAP operating margin held at 9% and net revenue retention was 124%. Remaining performance obligations were $6.7B (+34% YoY) .
Results exceeded Wall Street consensus: revenue $1.042B vs $1.006B estimate, and non-GAAP diluted EPS $0.24 vs $0.21. Both were beats, with EPS a notable beat. Values retrieved from S&P Global.*
FY26 product revenue guidance was raised to $4.325B from $4.280B; Q2 FY26 guidance introduced at product revenue $1.035–$1.040B and non-GAAP operating margin 8% .
Bookings strength and large-customer momentum: two $100M+ renewals in Q1 and 451 net new customers; management highlighted Snowpark and Dynamic Tables outperformance and continued AI adoption as demand catalysts .

What Went Well and What Went Wrong

What Went Well

Product revenue and RPO growth: $996.8M product revenue (+26% YoY) and RPO $6.7B (+34% YoY). CEO: “no deceleration,” net revenue retention 124% .
New logo and large deal momentum: 451 net new customers in Q1; two $100M+ contracts signed in financial services; Snowpark and Dynamic Tables “outperformed expectations” .
Capital deployment and liquidity: $491M buyback (3.2M shares at ~$152.63); ended quarter with $4.9B in cash and investments .

What Went Wrong

GAAP profitability: GAAP net loss widened to -$430.1M and GAAP diluted EPS to -$1.29, impacted by higher operating expenses and a $106.5M office impairment in G&A .
Services drag: professional services posted a GAAP gross margin of -40%, weighing on consolidated margins .
Free cash flow compression: non-GAAP free cash flow margin fell to 18% (from 40% YoY), with management noting seasonality and more second-half weighting for FCF this year .

Financial Results

Metric	Q3 FY2025	Q4 FY2025	Q1 FY2026
Revenue ($USD Millions)	$942.1	$986.8	$1,042.1
Product Revenue ($USD Millions)	$900.3	$943.3	$996.8
GAAP Gross Margin (%)	66%	66%	67%
Non-GAAP Product Gross Margin (%)	76%	76%	76%
Non-GAAP Operating Margin (%)	6%	9%	9%
GAAP Net Loss ($USD Millions)	$(327.9)	$(325.7)	$(430.0)
Non-GAAP Diluted EPS ($USD)	$0.20	$0.30	$0.24
GAAP Diluted EPS ($USD)	$(0.98)	$(0.99)	$(1.29)
Free Cash Flow ($USD Millions)	$78.2	$415.4	$183.4
Adjusted Free Cash Flow ($USD Millions)	$86.8	$423.1	$206.3
Non-GAAP Free Cash Flow Margin (%)	8%	42%	18%

Segment breakdown:

Revenue Breakdown	Q3 FY2025	Q4 FY2025	Q1 FY2026
Product ($USD Millions)	$900.3	$943.3	$996.8
Professional Services & Other ($USD Millions)	$41.8	$43.5	$45.3

KPIs:

KPI	Q3 FY2025	Q4 FY2025	Q1 FY2026
Net Revenue Retention (%)	127%	126%	124%
RPO ($USD Billions)	$5.7	$6.9	$6.7
Customers ≥$1M TTM Product Revenue	542	580	606
Forbes Global 2000 Customers	754	745	754
Net New Customers (Quarter)	—	—	451

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Product Revenue ($USD Billions)	FY2026	$4.280	$4.325	Raised
Non-GAAP Product Gross Margin (%)	FY2026	~75%	~75%	Maintained
Non-GAAP Operating Margin (%)	FY2026	8%	8%	Maintained
Adjusted Free Cash Flow Margin (%)	FY2026	25%	25%	Maintained
Weighted-Average Diluted Shares (Millions)	FY2026	374	372	Lowered
Product Revenue ($USD Billions)	Q2 FY2026	—	$1.035–$1.040	New
Non-GAAP Operating Margin (%)	Q2 FY2026	—	8%	New
Weighted-Average Diluted Shares (Millions)	Q2 FY2026	—	371	New

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 FY25)	Previous Mentions (Q4 FY25)	Current Period (Q1 FY26)	Trend
AI initiatives (Cortex, Agents)	Strong adoption; platform central to data AI	>4,000 weekly AI/ML accounts; Cortex Agents; OpenAI on Azure partnership	>5,200 weekly AI/ML accounts; Llama 4 day-1; Cortex Agents usage grows	Strengthening
Snowpark & Dynamic Tables	—	New products to drive H2 acceleration	“Outperformed expectations” in Q1	Strengthening
Open data formats (Iceberg)	—	Iceberg expected tailwind	Continued adoption; connectors enlarging scope	Strengthening
Go-to-market rigor & bookings	—	Comp plan includes bookings quota; capacity run-outs in Q4	Two $100M+ deals; 451 net new customers; buybacks	Improving
Macro/tariffs	—	Stable consumption patterns	No macro/tariff impact observed; customers optimizing efficiently	Stabilizing
Public sector expansion	—	—	Launch of Snowflake Public Sector; DoD IL authorization	New/expanding

Management Commentary

CEO: “Product revenue for Q1 was $997 million… Our growth rate was stable quarter-over-quarter, showing no deceleration. RPO totaled $6.7 billion… NRR was a very healthy 124%” .
CFO: “Both Snowpark and Dynamic Tables outperformed expectations in Q1… We added 451 net new customers… Two large customers signed $100 million-plus contracts in Q1” .
CEO on AI monetization model: “We don’t sell AI separately. It’s not a SKU… customers are not signing up for contracts on AI… it’s on their existing spend” .
CFO on buybacks: “We used $491 million to repurchase 3.2 million shares… We still have $1.5 billion remaining on our authorization through March 2027” .
CEO on partnerships/models: “Day 1 availability of Meta’s Llama 4… expanded partnership with Microsoft to host OpenAI models on Azure regions” .

Q&A Highlights

Consumption and guidance: Management declined to granularly discuss in-quarter consumption but noted guidance reflects observed customer behavior through today .
AI contribution and strategy: AI-native customers are less than 1% of revenue; Snowflake does not monetize AI as a separate SKU, focusing on use-case value within existing spend .
Sales comp and bookings: Added bookings quota alongside consumption revenue; early positive impact, but principal driver remains consumption .
Capex spike driven by office build-outs (San Mateo, Menlo Park, Bellevue); no major builds expected in next couple of years .
Confidence in outlook: Visibility into new workloads/migrations and stronger go-to-market underpin guidance ramp; Investor Day to elaborate further .

Estimates Context

How Q1 FY26 compared to Wall Street consensus (S&P Global):

Metric	Q1 FY2026 Consensus	Q1 FY2026 Actual
Revenue ($USD Millions)	$1,005.7*	$1,042.1
Non-GAAP Diluted EPS ($USD)	$0.21*	$0.24
Revenue – # of Estimates	39*	—
EPS – # of Estimates	41*	—

Values retrieved from S&P Global.*

Implications: Revenue and EPS beats reflect healthy consumption and new product contribution; Street models may need to raise FY26 revenue given company raised product revenue guidance to $4.325B vs prior $4.280B .

Key Takeaways for Investors

Strong top-line and KPIs: Product revenue +26% YoY to $996.8M and RPO +34% YoY to $6.7B indicate durable demand; NRR at 124% remains healthy .
Beat and raise quarter: Revenue/EPS beat vs consensus and increased FY product revenue guidance to $4.325B support positive estimate revisions and a constructive setup into Summit and Investor Day . Values retrieved from S&P Global.*
New workload catalysts: Snowpark and Dynamic Tables outperformance and accelerating AI adoption (Cortex, Agents, Llama/OpenAI access) broaden Snowflake’s monetizable footprint .
Large-account momentum: Two $100M+ deals and strong new logo additions (451) highlight booking strength and enterprise penetration in financial services .
Profitability mix watch: GAAP losses widen with office impairment and services gross margin drag; non-GAAP operating margin steady at 9% and FCF margin seasonally lower, with management guiding second-half FCF weighting .
Public sector optionality: New public sector entity and DoD authorization open regulated market opportunities; potential medium-term contribution .
Stock drivers near term: Execution updates on AI products, migration tooling (SnowConvert AI), and any sequential acceleration in product revenue/NRR will be watched; opportunistic buybacks provide support .

Snowflake Inc. (SNOW)·Q1 2026 Earnings Summary