Snowflake stock popped Thursday on first-quarter earnings that topped Wall Street targets while revenue met views. June quarter product revenue guidance came in above expectations.
The enterprise software maker released the Snowflake earnings report after the market close on Wednesday.
"This was an impressive quarter in a tough macro, which we think reflects the high priority of core data/analytics projects, the growing breadth of Snowflake's platform into data engineering & AI workloads, and the strength in go-to-market execution," said TD Cowen analyst Derrick Wood in a report.
At Morgan Stanley, analyst Keith Weiss said in a report: "Ongoing benefits from sales changes, and traction with new products are translating into sustained growth in product revenues."
On an adjusted basis, Snowflake earnings were 24 cents per share, up 71% from a year earlier. Analysts expected Snowflake to report adjusted profit of 21 cents per share.
Revenue climbed 26% to $1 billion, the enterprise software maker said, in-line with Wall Street targets.
"Snowflake delivered a strong start to the year with product revenue of $996.8 million, up 26%," said RBC Capital analyst Matthew Hedberg in a report. "This represents a beat of 3.6% vs the 3.1% beat last quarter."
Snowflake Stock: Guidance Above Views
For the June quarter, Snowflake forecast product revenue in a range of $1.035 billion to $1.040 billion vs. consensus estimates for $1.022 billion.
"Full year 2026 product revenue was raised to $4.325 billion at the midpoint (up 25% year-over-year), with management confident in the updated guide given steady consumption trends in the month of May and overall solid visibility into the current business," said William Blair analyst Jason Ader in a report.
He added: "From a margin standpoint, fiscal 2026 non-GAAP product gross margin of 75% and non-GAAP operating margin of 8% were both reiterated, as management continues to give itself flexibility around spending for growth."
On the stock market today, Snowflake stock rose nearly 10% to 196.62 in morning trading.
"At the heart of the stock debate is Snowflake's ability to attract data science and AI workloads to drive the next leg of growth beyond core business analytics, and we believe this quarter showed evidence of why they are getting seat at that table," said Deutsche Bank analyst Brad Zelnick in a report.
Privately held Databricks has been Snowflake's biggest rival.
SNOW stock had advanced 18% in 2025 heading into the Snowflake earnings report after tumbling 22% last year.
Snowflake sells data analytics software that runs on cloud-computing platforms. Also, the company has evolved into a cloud data-management software provider.
According to IBD Stock Checkup, SNOW stock holds an IBD Composite Rating of 82 out of a best-possible 99. IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating.
In addition, SNOW stock has an Accumulation/Distribution Rating of B. The rating, on an A+ to E scale, measures institutional buying and selling in a stock. A+ signifies heavy institutional buying; E means heavy selling.
Snowflake stock has forged a cup base with an entry point of 194.40.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
