Snowflake’s latest earnings call showcased the company’s accelerating momentum, driven by robust revenue growth and a deepening commitment to artificial intelligence. For the first quarter of fiscal 2026, Snowflake reported total revenue of $1.04 billion, surpassing analyst expectations and marking a 26% year-over-year increase.
Product revenue reached $997 million, reflecting strong demand from enterprise customers and the growing adoption of cloud-based data solutions.
The company’s net revenue retention rate stood at 124%, underlining high customer loyalty and increased usage within its existing client base. Snowflake added 451 new customers during the quarter, bringing its total to over 11,500, with a notable 27% rise in customers generating more than $1 million in annual product revenue.
This expansion highlights Snowflake’s success in attracting and retaining large enterprises across sectors such as finance, healthcare, and technology.
A central theme of the earnings call was Snowflake’s strategic investment in AI and machine learning. The company introduced Cortex AI, a fully managed generative AI service, and Arctic LLM, its proprietary large language model developed in under three months.
These innovations are designed to provide customers with advanced AI capabilities natively within the Snowflake platform, simplifying integration and enabling predictive analytics at scale. Snowflake’s acquisition of TruEra, a specialist in AI model monitoring, further strengthens its offering by ensuring reliability and transparency in AI deployments.
Looking ahead, Snowflake raised its product revenue guidance for the second quarter to between $1.035 billion and $1.040 billion, representing an expected 25% year-over-year growth. The full-year product revenue forecast was also increased to $4.325 billion, signaling management’s confidence in sustained demand for its AI-driven data cloud solutions. Executives emphasized that AI readiness, rather than specific AI contracts, is fueling the company’s growth, as organizations increasingly seek platforms capable of supporting modern analytics and machine learning workloads.
Operationally, Snowflake improved its adjusted operating margin to 9% and maintained a strong free cash flow margin of 20%. With $4.5 billion in cash and investments, the company is well-positioned to continue investing in innovation and expanding its market reach. Management acknowledged potential macroeconomic and competitive risks but expressed optimism about capturing further opportunities in the rapidly evolving AI and data landscape.
Overall, Snowflake’s earnings call reinforced its leadership in the cloud data sector, with a clear focus on AI integration, product innovation, and operational efficiency. The company’s strong performance and forward-looking strategy have fueled investor optimism, positioning Snowflake as a key player in the next wave of enterprise technology transformation.
