Snowflake Inc (NYSE:SNOW) shares added more than 11% after the cloud data platform posted an earnings beat for the first quarter and raised its full-year product revenue outlook.
Revenue for the quarter reached approximately $1.04 billion, a 26% year-over-year increase and exceeding the consensus forecast of about $1.01 billion.
Product revenue also jumped 26% from the year-ago quarter to $996.8 million, beating guidance of $955 million and the Street estimate of $962.3 million.
Earnings per share of $0.24 beat estimates of $0.21.
Remaining performance obligations, a measure of future revenue potential, were $6.7 billion, up 34% year-over-year and ahead of estimates of approximately $6.6 billion.
For the full year, the company now expects product revenue of $4.33 billion, up from the previous estimate of $4.28 billion and above Street expectations of $4.29 billion.
Guidance for the second quarter was also above estimates, with Snowflake expecting product revenue of $1.035 billion to $1.04 billion, up 25% year-over-year, compared to estimates of $1.02 billion.
“We see an enormous opportunity ahead as we extend this value throughout the full data lifecycle,” Snowflake CEO Sridhar Ramaswamy said in a statement.
Price target boosted
Analysts at Wedbush maintained their ‘Outperform’ rating and raised their price target on Snowflake to $230 from $210 post-earnings, noting increased confidence in the company’s growth story over the next 12 to 18 months.
Shares of Snowflake traded hands up 11.5% at about $199 late morning on Thursday.
“While Snowflake faces significant competition, the company remains at the forefront of innovation with its cloud-based data platform providing advanced capabilities for data processing and warehousing while looking to simplify platform architectures for customers across industries,” the analysts wrote.
“Overall, Snowflake is well-positioned to be a 2nd derivative AI Revolution player as it will benefit from the significant acceleration of use cases and building its AI pipeline throughout fiscal 2026 & beyond.”