Snowflake Inc. delivered a strong start to its fiscal year, surpassing Wall Street’s expectations for both earnings and revenue in the first quarter of 2025. The cloud data platform reported adjusted earnings per share of $0.24, outpacing analyst forecasts of $0.21.
Revenue reached $1.04 billion, exceeding the anticipated $1.01 billion and marking a robust 26% year-over-year increase. Product revenue alone climbed to $997 million, reflecting Snowflake’s ongoing momentum in the competitive data management sector.
Following the upbeat earnings report, Snowflake’s stock surged nearly 11% to $198.82, its highest level in over a year and approaching a new 52-week high. The sharp rally underscores renewed investor confidence in the company’s growth trajectory and operational execution.
Key performance metrics highlighted Snowflake’s expanding market presence. The company added 451 new customers in the quarter, bringing its total to more than 11,000. Net revenue retention remained strong at 124%, indicating that existing customers are increasing their use of Snowflake’s platform.
Remaining performance obligations—a measure of contracted future revenue—grew 34% to $6.7 billion, signaling healthy demand and a robust sales pipeline.
Snowflake also raised its outlook for the current quarter and full fiscal year. Management now expects second-quarter product revenue between $1.035 billion and $1.040 billion, representing 25% year-over-year growth. For fiscal 2026, the company increased its product revenue target to $4.325 billion, up from its previous guidance. This optimism is fueled by Snowflake’s strategic investments in artificial intelligence, machine learning, and partnerships with leading AI firms, which are driving adoption across a broad range of industries.
Despite reporting a net loss of $430 million for the quarter, Snowflake’s adjusted operating margins and free cash flow margins improved, reflecting a focus on efficiency and scale. Analysts responded favorably to the results, with several raising their price targets and projecting the potential for Snowflake to reach new highs by year-end.
With its strong Q1 performance, rising customer base, and bullish outlook, Snowflake is positioned as a leader in the evolving cloud data and AI landscape, capturing the attention of both the market and enterprise clients worldwide.
