Abstract

Snowflake will report its quarterly results on May 27, 2026, Post Market; our preview consolidates company guidance, recent trends in product revenue and margins, and current sell-side expectations into a concise outlook for revenue, profitability, and EPS.

Market Forecast

Consensus expects Snowflake’s current quarter revenue at 1.32 billion US dollars, up 31.33% year over year, with EPS around 0.32 and EBIT near 121.27 million US dollars; the company’s model implies a continued expansion path supported by AI-related workloads, although the net profit margin trajectory is a key watch. The main business continues to be product revenue, underpinned by enterprise data cloud consumption and expanding AI/ML usage; professional services remains small but supports customer adoption. The most promising segment is product revenue at an estimated 1.23 billion US dollars, with year-over-year growth implied by total revenue growth; services and other are forecast around 57.36 million US dollars, a modest contribution.

Last Quarter Review

In the prior quarter, Snowflake delivered revenue of 1.28 billion US dollars, a gross profit margin of 66.80%, a GAAP net loss attributable to the parent company of 310.00 million US dollars with a net profit margin of -24.11%, and adjusted EPS of 0.32, with revenue up 30.12% year over year and adjusted EPS up 6.67% year over year. A notable highlight was solid operating performance with EBIT of 139.18 million US dollars, exceeding forecasts and signaling improving operating leverage. The main business remained product revenue at 1.23 billion US dollars and professional services and other at 57.36 million US dollars, with product growth aligned to the company’s overall revenue momentum.

Current Quarter Outlook

Main business: Product revenue and consumption growth

Product revenue is the core driver of Snowflake’s top line, accounting for roughly 95% of sales last quarter and projected to remain near that mix this quarter. With estimated total revenue at 1.32 billion US dollars and typical mix intact, implied product revenue is around 1.27–1.29 billion US dollars, consistent with broad-based consumption growth from large enterprise customers. The key metric investors will scrutinize is consumption elasticity from AI/ML and analytics workloads, as well as any commentary on large customer expansions and net revenue retention. Management’s ability to sustain near-30% growth while maintaining robust unit economics will be pivotal for sentiment given the recent acceleration signals in enterprise data investments.

Most promising business: AI-accelerated workloads within the Data Cloud

AI-enabled data processing and application development on Snowflake’s Data Cloud continues to provide the strongest incremental growth vector, reflected in consensus revenue growth for the quarter of about 31%. Deal activity in advanced analytics and AI application builds is expected to support higher consumption, with expansion within Fortune 2000 accounts and increases in seven-figure customers highlighted in recent quarters. Investors will focus on updates to Snowpark, Cortex, and related AI application tooling that can catalyze runtime usage and drive higher product revenue mix density. Execution on these initiatives supports EBIT leverage, as incremental AI workloads can scale on existing infrastructure with favorable gross margin characteristics.

Key stock driver this quarter: Profitability path and margin mix

Despite strong top-line growth, the GAAP net loss and negative net profit margin last quarter emphasize the importance of the profitability trajectory this quarter. Consensus EBIT of roughly 121.27 million US dollars implies continued operating leverage, but investors will look for signals that gross margin can remain stable to higher as AI and higher-value workloads scale. Any updates on free cash flow dynamics, sales efficiency, and cost discipline will influence post-earnings reactions. Management commentary on the transition from growth investment to profitable scale, within the context of consumption volatility and macro budgets, will be closely watched.

Analyst Opinions

The majority of recently published analyst views are bullish. Several institutions maintain Buy ratings, including Oppenheimer (price target 250 US dollars), Bank of America (275 US dollars), TD Cowen (Buy, citing re-accelerating growth and expanding AI platform), Rosenblatt Securities (275 US dollars), and Mizuho (285 US dollars). A minority hold or neutral stance is seen from Barclays, which maintained or set Hold ratings with targets in the 192–250 US dollars range. In aggregate, bullish opinions outweigh hold/neutral views by a clear margin, pointing to a majority optimistic stance ahead of the print.

The bullish camp emphasizes three points. First, revenue growth near the low-30% range with stable to improving unit economics suggests Snowflake can continue to compound product revenue despite macro noise. Second, the company’s AI platform momentum—highlighted by tooling and acquisitions tailored to enterprise AI workloads—supports higher-value consumption and creates visibility into sustained growth. Third, operating leverage is becoming more apparent, with prior-quarter EBIT exceeding expectations and consensus now embedding a rising run-rate, which could broaden investor confidence if delivered alongside strong net revenue retention. Overall, the predominant view is that AI-driven consumption and enterprise data consolidation can keep revenue growth around the low-30% zone while gradually improving profitability, setting the stage for a constructive setup into the results.