Snowflake Inc (NYSE:SNOW) shares jumped 4.6% in Thursday morning trading after the cloud data platform reported quarterly results that beat Wall Street expectations and highlighted strong growth fueled by enterprise AI adoption.
The company posted fourth-quarter fiscal 2026 revenue of $1.28 billion, exceeding analysts’ estimate of $1.25 billion and marking a 30% increase from the prior year.
Earnings per share came in at $0.34, above the $0.27 expected.
Adjusted free cash flow rose 61% year-over-year to $782.2 million, surpassing estimates of $745 million.
Snowflake also reported net revenue retention of 125% and remaining performance obligations of $9.77 billion, up 42% from a year earlier. Total customer accounts reached 13,328, above the Street’s 13,070 estimate, with 733 customers generating more than $1 million in trailing 12-month product revenue, a 27% increase year-over-year. Net new customer additions rose 40% to 740.
Snowflake’s fiscal first-quarter 2027 guidance projects product revenue of $1.262 billion to $1.267 billion, up 27% year-over-year. For full-year FY27, the company expects product revenue of $5.66 billion, also up 27%, with a non-GAAP product gross profit margin of 75%, non-GAAP operating margin of 12.5%, and adjusted free cash flow margin of 23%.
The company highlighted continued traction in AI offerings, with approximately 9,100 accounts now leveraging Snowflake AI, up from 7,300 in the prior period. Its Agentic AI Snowflake Intelligence now counts 2,500 customers, nearly double the prior period, while Cortex AI adoption has also accelerated.
Gross margins of 71.7% exceeded Street expectations of 71.1%, driven by product gross margins of 75.1%. Operating margins of 10.8% were well above guidance of 7%.
Analysts at Wedbush noted Snowflake’s position as a key enabler for enterprise AI, highlighting that improvements in foundational models increase the need for clean, governed, and auditable data, strengthening demand for Snowflake’s core data warehousing solutions. They maintained an “Outperform” rating with a $270 price target.