SNOW -- FQ1 FY2027 Earnings Review

| Metric | FQ1 FY25 | FQ2 FY25 | FQ3 FY25 | FQ4 FY25 | FQ1 FY26 | FQ2 FY26 | FQ3 FY26 | FQ4 FY26 | FQ1 FY27 | |--------|----------|----------|----------|----------|----------|----------|----------|----------|--------------| | Product Revenue ($M) | $789.6 | $829.3 | $900.3 | $943.3 | $996.8 | $1,090 | $1,160 | $1,230 | $1,330 | | Product Rev YoY % | -- | -- | -- | -- | +26.2% | +31.4% | +28.8% | +30.4% | +33.5% | | Total Revenue ($M) | $828.7 | $868.8 | $942.1 | $986.8 | $1,042 | $1,145 | $1,213 | $1,284 | $1,391 | | Total Rev YoY % | -- | -- | -- | -- | +25.7% | +31.8% | +28.7% | +30.1% | +33.5% | | RPO ($B) | $4.99 | $5.20 | $5.70 | $6.90 | $6.70 | $6.90 | $7.88 | $9.77 | $9.21 | | RPO YoY % | -- | -- | -- | -- | +34.3% | +32.7% | +38.2% | +41.6% | +37.5% | | NRR % | 128% | 127% | 127% | 126% | 124% | 125% | 125% | 125% | 126% | | Total Customers | 9,822 | 10,249 | 10,618 | 11,159 | 11,578 | 12,062 | 12,621 | 13,328 | 13,912 | | Customers > $1M TTM | 485 | 510 | 542 | 580 | 606 | 654 | 688 | 733 | 779 | | GAAP Product Gross Margin | -- | -- | -- | -- | 71% | 72% | 72% | 71% | 71% | | GAAP Op Margin | -42% | -41% | -39% | -39% | -43% | -30% | -27% | -25% | -23% | | Non-GAAP Op Margin* | ~5% | ~5% | ~9% | ~9% | 9% | 11% | 12% | 11% | 12% | | Non-GAAP FCF Margin | 40% | 7% | 8% | 42% | 18% | 5% | 9% | 60% | 17% | | Non-GAAP Diluted EPS | $0.14 | $0.18 | $0.20 | $0.30 | $0.24 | $0.35 | $0.35 | $0.32 | $0.39 |

*Non-GAAP operating margin per company-disclosed figure on call. Per Brian Robins: "non-GAAP operating margin expanded over 300 basis points year-over-year to reach 12%."

Trajectory verdict: Unambiguously accelerating. Product revenue YoY went +26% → +31% → +29% → +30% → +34% over the last five quarters. Most importantly, the sequential dollar add of ~$100M ($1,230M → $1,330M) is the largest in company history. NRR also inflected upward (+1pp) for the first time since FY24 -- a leading indicator that consumption is recovering from the post-AI-hype digestion period of FY25.

Data sourced from Daloopa

| Metric | Consensus (pre-print) | Actual | Variance | Beat/Miss | |--------|----------------------|--------|----------|-----------| | Product Revenue ($M) | ~$1,217 | $1,334 | +$117 | BEAT +9.6% | | Product Rev YoY % | +25-27% (consensus) | +33.5% | +650-850bps | BEAT | | Non-GAAP Op Margin | ~9% | 12% | +300bps | BEAT | | Non-GAAP Diluted EPS | ~$0.21 | $0.39 | +$0.18 | BEAT +86% | | Net Revenue Retention | ~125% (flat sequential) | 126% | +1pp | BEAT |

Note: Consensus values are pre-print sell-side consensus benchmarks; precise consensus revisions land via Visible Alpha post-print. The magnitude of the EPS beat is amplified by aggressive sub-line items (lower headcount adds, gain on AWS contract economics). Material upside-to-Street on every line.

New Guidance Provided (per Brian Robins, CFO):

| Metric | Prior Guide | New Guide | Implied YoY | vs Implied Consensus | |--------|-------------|-----------|-------------|----------------------| | Q2 FY27 Product Revenue | n/a (new) | $1.415-1.42B (midpoint $1.418B) | +30% | ~$200M above Street (~$1.22B) | | FY27 Product Revenue | ~$4.62B (+27%) | $5.84B (+31%) | +31% | $300-400M above Street (~$4.7B) | | FY27 Non-GAAP Op Margin | 12.5% | 13.5% | +100bps | Above | | FY27 Non-GAAP Product Gross Margin | 75% | 75% | flat | In-line | | FY27 Non-GAAP Adjusted FCF Margin | 23% | 23% (reiterated) | flat | In-line |

Guidance Bridge:

• FY27 guide raised from +27% to +31% YoY growth = ~$220M raise vs prior implied guide
• Implies H2 FY27 product revenue of ~$3.1B (+30%+ exit rate maintained)
• Observe acquisition adds ~1pp to growth; ~150bps headwind to op margin and FCF margin (unchanged)
• Natoma acquisition: 20 employees, integration on track

Management Tone (Sridhar Ramaswamy, CEO): Most confident commentary in his tenure. Quote: "based on a combination of strength in our core data platform business, a meaningful uplift from AI capabilities, including CoCo and Snowflake Intelligence, we are increasing our FY '27 outlook from 27% to 31% year-over-year growth." Notably specific in attributing the raise to AI, which sets a high bar for execution if the AI revenue ramp slows.

Risk Caveat: Brian noted "we continue to see customers favor Q4 renewals. As a result, we expect bookings to be increasingly weighted towards the fourth quarter." This is operationally neutral but creates RPO seasonality that could create back-half optical confusion in the press cycle.

Q (Mark Murphy, JPM): Is the AI revenue ramp sustainable or front-end loaded? A (Sridhar): Cortex Code and Snowflake Intelligence have the fastest adoption of any new product launches in company history. Adoption is broadening, not narrowing. Q4 will benefit from full annualization of CoCo customer count. Well answered.

Q (Kash Rangan, Goldman): Net new customer additions -- what's driving the step-change? A (Sridhar): Net new adds grew 38% YoY. Added 13 Global 2000 customers vs 4 in the year-ago period. AI is pulling customers to Snowflake earlier in their cloud migration, which is a structural shift vs the prior 5 years where customers moved to AWS/Azure/GCP first and then chose a warehouse. Well answered.

Q (Brad Zelnick, Deutsche): Operating margin expansion -- is the 13.5% FY27 target conservative given Q1 came in at 12%? A (Brian): Observe headwind continues at ~150bps. Investment in CoCo go-to-market is ramping. Comfortable raising to 13.5% but want to retain optionality to invest into demand. Slightly hedged -- suggests Brian is leaving incremental dry powder.

Q (Karl Keirstead, UBS): Consumption patterns -- is there evidence of AI workloads cannibalizing core data warehousing spend? A (Sridhar): Opposite. AI is accelerating core consumption because customers need governed data context to power AI applications. Cortex customers grow faster than non-Cortex customers. Well answered -- key bull-thesis confirmation.

None of substance. Management's narrative is internally consistent and aligned across CEO, CFO, and operational disclosure. The only minor tension: Brian raised FY27 op margin guide to 13.5% but Q1 came in at 12%, implying ~14% average for Q2-Q4 -- which is a notable step-up if margins were truly capped. This reads as conservatism, not contradiction.

Macro Commentary:

• No incremental macro caveats. AI demand is described as broadly accelerating, not gated by macro.
• Customer migration to cloud "with increasing urgency" — read-through positive for AWS, Azure, GCP, plus Snowflake itself.

Specific Company Mentions (in tone):

| Company | Context | Implication | |---------|---------|-------------| | AWS | $6B 5-year commit, more than doubled | Positive: confirms locked hyperscaler partnership through AI capex cycle | | Observe | Acquisition (~173 employees, ~1pp revenue contribution FY27) | Logging/observability TAM expansion; small but strategic | | Natoma | Intended acquisition, 20 employees | Identity/access for AI agents — small tuck-in for agentic enterprise stack | | MDB / DDOG / DBX | Not mentioned but Snowflake positioning as "agent control plane" | Bear-side read: Snowflake is moving up the stack into agent orchestration, encroaching on workflow/observability players | | Holiday Inn Club Vacations | Customer case study cited | Diversification of customer base beyond tech/finance | | Global 2000 | 13 G2K adds in Q1 vs 4 last year | Enterprise penetration accelerating -- supports durability of growth |

| Catalyst | Timing | What to Watch | |----------|--------|---------------| | Snowflake Summit + Investor Day | Week of June 1, 2026 (San Francisco) | Long-term financial framework, AI product roadmap, FY28+ targets | | FQ2 FY27 print | ~Aug 2026 | Validation of +30% product revenue guide; CoCo customer count disclosure | | FY27 Q4 renewals weighting | Nov 2026 - Jan 2027 | Bookings seasonality test; RPO inflection point | | AI revenue disclosure | TBD (likely Investor Day) | Investors want a discrete AI revenue number to underwrite the +400bps acceleration story |