The company's guidance method excluded a product it had only just launched, and management said so two months before the run began.
Snowflake (SNOW) stock has gained about 98% over the past three months, from $142.56 to $282.90, while the S&P 500 returned 2.5%. Its largest cloud peers went the other way over the same window: MSFT and AMZN fell 8.8% and 12.7%, and GOOGL slipped 3.7%. Start with what the run was actually about.
The Outlook Went From 27% To 31% In One Report
At the fiscal Q1 2027 report in late May, inside the run, product revenue came in at $1.334 billion, with growth accelerating to 34% year over year, from 30% in fiscal Q4 2026 and 26% a year earlier. Net revenue retention rose to 126%, and non-GAAP operating margin expanded more than 300 basis points year over year to 12%. The bigger item was the outlook: management lifted the fiscal 2027 product revenue guide to $5.84 billion, from 27% to 31% growth, and the full-year non-GAAP operating margin guide from 12.5% to 13.5%. By the company's own explanation, the largest single driver of that raise was Cortex Code, its coding agent.
The February Guide Management Said Could Not Include Cortex Code
#revenue
Snowflake (SNOW) stock has gained about 98% over the past three months, from $142.56 to $282.90, while the S&P 500 returned 2.5%. Its largest cloud peers went the other way over the same window: MSFT and AMZN fell 8.8% and 12.7%, and GOOGL slipped 3.7%. Start with what the run was actually about.
The Outlook Went From 27% To 31% In One Report
At the fiscal Q1 2027 report in late May, inside the run, product revenue came in at $1.334 billion, with growth accelerating to 34% year over year, from 30% in fiscal Q4 2026 and 26% a year earlier. Net revenue retention rose to 126%, and non-GAAP operating margin expanded more than 300 basis points year over year to 12%. The bigger item was the outlook: management lifted the fiscal 2027 product revenue guide to $5.84 billion, from 27% to 31% growth, and the full-year non-GAAP operating margin guide from 12.5% to 13.5%. By the company's own explanation, the largest single driver of that raise was Cortex Code, its coding agent.
The February Guide Management Said Could Not Include Cortex Code
#revenue
4 days ago
