New York, Feb 26, 2026, 05:18 EST — Premarket
- SNOW dropped 0.6% before the bell, hovering near $168.22.
- Snowflake is targeting $5.66 billion in product revenue for FY2027, while for Q1, the company expects between $1.262 billion and $1.267 billion in product sales.
- Attention shifts to AI-fueled adoption, margin trends, and upcoming management showings.
Snowflake Inc dropped 0.6% before the bell Thursday, changing hands near $168.22. The cloud data firm reported its latest quarter and put out a full-year product-revenue forecast that came in above estimates.
The report drops at a tricky time for software stocks. Lately, investors haven’t hesitated to dump shares on anything short of standout results—even when the top-line figures come in ahead.
Snowflake’s fortunes ride on cloud data budgets, which lately are getting pulled into the AI build-out. Core product revenue—closely tied to customer usage—moves quickly when workloads shift.
Shares finished Wednesday at $169.21, climbing 5.06%. The session saw prices swing from $160.00 to as high as $170.47, according to Investing.com data.
Snowflake, in its latest filing, projected fiscal 2027 product revenue at $5.66 billion. For the first quarter, the company sees product revenue between $1.262 billion and $1.267 billion. Snowflake is also targeting a 12.5% non-GAAP operating margin for the full year, along with a 23% margin for adjusted free cash flow.
Product revenue for the quarter ended Jan. 31 jumped 30% to $1.23 billion, with total revenue coming in at $1.28 billion. Snowflake’s net revenue retention rate landed at 125%—showing how spending from existing customers compared to the same period last year.
Snowflake said remaining performance obligations reached $9.77 billion, a 42% jump. The company brought in 740 net new customers for the quarter, finishing with 733 customers posting at least $1 million each in trailing 12-month product revenue.
Snowflake “sits at the center of the enterprise AI revolution,” CEO Sridhar Ramaswamy said. CFO Brian Robins cited momentum in customer additions as Snowflake pushes for what it’s calling “durable growth.” The company reported over 9,100 accounts tapping its AI features, and spotlighted newer offerings, including its AI coding agent, Cortex Code.
Even so, the mood didn’t settle. Shares slid roughly 2% after hours on the news, according to Reuters. “Investors are skeptical about all software companies right now,” D.A. Davidson’s Gil Luria told the outlet. Reuters noted Snowflake now counts over 2,500 customers using its Snowflake Intelligence “agentic” platform — these are software agents that perform tasks for users. The company also just landed a record deal valued at more than $400 million. https://www.reuters.com/business/snowflake…
The risk is right there in the guidance. Snowflake is now projecting product revenue growth of roughly 27% for the current quarter, along with a Q1 non-GAAP operating margin target of 9%. That leaves little room if customers start dialing back usage, or if rivals crank up the pressure by folding more AI tools into their data offerings.
Looking ahead, Ramaswamy and Robins are on the schedule to speak at the Morgan Stanley Technology, Media & Telecom Conference, set for March 3 at 4:05 p.m. PT, according to the company. On traders’ radar: June 1–4, the Snowflake Summit 2026 hits San Francisco, where fresh product news could sway sentiment.
