Snowflake Raises FY27 Outlook as AI Products Accelerate Consumption

Transcript intelligence

What changed

Compared with the prior quarter, management reported faster product-revenue growth, raised FY27 growth and margin targets, and shifted the AI roadmap toward agentic workflows through the intended Natoma acquisition. Snowflake also disclosed expanded AWS and OpenAI partnerships, while investor concerns moved toward AI cost management, margin mix, guidance methodology, and go-to-market efficiency.

Guidance delta

Management raised FY27 revenue growth guidance to 31%, with full-year product revenue guidance of $5.84 billion and a 13.5% operating-margin target.

Key takeaways

• Product revenue grew 34% year over year to $1.334 billion, with the strongest sequential dollar growth in company history.
• Snowflake Intelligence usage doubled quarter over quarter, while Cortex Code adoption exceeded 7,100 accounts.
• Net new customers increased 38% year over year to 616, and 64 customers now spend more than $10 million annually.
• Management linked growth to AI workloads, a governed data foundation, and partnerships with AWS, OpenAI, and SAP.
• The evidence supports the research hypothesis for SNOW, but durability, AI costs, margin mix, and acquisition execution remain unresolved.

Management priorities

• Expand Snowflake Intelligence, Cortex Code, and future agent capabilities.
• Integrate Natoma to extend the platform into email, calendar, and ticketing workflows.
• Launch the cloud run-time product in public preview for governed AI-agent execution.
• Deepen collaborations with AWS, OpenAI, SAP, and Anthropic.
• Use Investor Day and Snowflake Summit to present the product roadmap and growth strategy.