Snowflake (SNOW) is set to report Q1 FY2027 earnings on Tuesday, May 27, 2026, after the market closes. The data cloud company has become a focal point for software investors reassessing valuations amid AI adoption trends, and this quarter's print will be critical for momentum.
The stock currently trades at $157.47, down 11.7% year-to-date despite a remarkable streak of earnings beats. Investors are balancing concerns over margin expansion and AI-driven data workload growth against the broader software sector rotation.
Key Takeaways
- SNOW reports Q1 FY2027 on May 27 after market close. Consensus: $0.3241 EPS, $1.35B revenue.
- The stock has beaten EPS estimates in four straight quarters, averaging a 16.4% surprise, but guidance will be critical for next-leg direction.
- At 28.1x forward earnings with YTD decline of 11.7%, valuation compression risks remain if growth guidance disappoints.
When Does Snowflake Report Earnings?
Earnings Date: Tuesday, May 27, 2026
Time: After market close (4:05 PM ET)
Conference Call: Management will host a live conference call and webcast following results. Check the Snowflake investor relations page for dial-in details and webcast link.
Earnings will hit the tape around 4:05 PM ET, giving after-hours traders approximately two hours of volume before the conference call begins. Add this date to your TickerDaily Earnings Calendar to track all upcoming software earnings.
Wall Street Consensus Estimates
| Metric | Q1 FY2027 Consensus | Q4 FY2026 Actual | Q1 FY2026 Actual | YoY Growth |
|---|---|---|---|---|
| EPS | $0.3241 | $0.35 | $0.18 | +80.1% |
| Revenue | $1.35B | $1.31B | $0.92B | +46.7% |
Wall Street expects Snowflake to deliver $0.3241 in adjusted EPS and $1.35B in revenue for Q1 FY2027. That revenue figure represents 46.7% YoY growth and 3.1% sequential growth from Q4's $1.31B print — a significant acceleration from the typical seasonal deceleration between winter and spring quarters.
Consensus EPS has remained stable over the past 90 days with minimal revision activity. Analyst estimates have not shifted materially up or down, suggesting a "show-me" posture heading into the report. The street is waiting to see if the company can maintain mid-40s revenue growth while demonstrating durable operating leverage.
Key Metrics to Watch
Revenue Growth Rate and Momentum
The 46.7% YoY growth forecast masks a critical nuance: sequential growth. Q4 to Q1 is typically soft for software given budget resets, but the 3.1% sequential estimate suggests resilient demand. Watch for CFO commentary on pipeline health and customer acquisition velocity in enterprise accounts. Any guidance that suggests deceleration below 40% YoY growth could trigger profit-taking.
Operating Margin Expansion
Snowflake has been in a multi-quarter margin expansion cycle as the company scales go-to-market efficiency. The EPS beat streak (averaging +16.4% above estimates) reflects operating leverage kicking in. Management needs to demonstrate that margin gains are sustainable and not one-time benefits. Watch for gross margin trends (cloud infrastructure costs) and operating expense leverage, particularly in Sales & Marketing as a percentage of revenue.
Free Cash Flow Generation
This is the oft-overlooked metric that separates software profitability theater from real cash generation. SNOW converted to profitable operations in 2024, but FCF trajectory is what institutional investors scrutinize for reinvestment capacity. Q1 FCF should show positive conversion at or above 25% of revenue to validate the business model's maturation.
What Management Said Last Quarter
In Q4 FY2026, management guided Q1 revenue to the $1.33B-$1.37B range with a midpoint of $1.35B — exactly where consensus is now sitting. CEO Frank Slootman and team emphasized three themes: (1) AI adoption is driving expansion within existing customer bases, (2) enterprises are consolidating data workloads onto Snowflake as LLMs create new processing demands, and (3) operating margins are inflecting toward 25%+ targets over the next 18-24 months.
Snowflake has a track record of conservative guidance and beating it. In the last four quarters, the company has beaten EPS estimates by 15.6%, 10.6%, 29.2%, and 10.3% respectively — a 16.4% average beat rate. This pattern suggests management builds in downside protection, which means if Q1 beats by less than 10%, it could signal a more cautious outlook heading into the year.
Earnings Surprise History
| Quarter | EPS Estimate | EPS Actual | Surprise % | Stock Move (next day) |
|---|---|---|---|---|
| Q4 FY2026 | $0.3164 | $0.35 | +10.6% | +4.2% |
| Q3 FY2026 | $0.2709 | $0.35 | +29.2% | +6.8% |
| Q2 FY2026 | $0.2175 | $0.24 | +10.3% | +3.1% |
| Q1 FY2026 | $0.2768 | $0.32 | +15.6% | +5.3% |
Snowflake's four-quarter average EPS beat is 16.4% — well above the software sector median of 4-6%. This beat streak has delivered consistent positive stock reactions, with an average next-day move of +4.9%. The Q3 beat was the most dramatic at +29.2%, which drove a +6.8% stock reaction despite a broader market decline that day.
The consistency of these beats reflects disciplined guidance and operating execution. However, with YTD weakness of 11.7%, the bar for Q1 is now higher. A beat of 10-15% is "in-line with history," but anything under 5% could pressure the stock into close if it signals margin pressure or competitive headwinds.
Analyst Sentiment
Rating Breakdown (58 total analysts):
- Strong Buy: 17 analysts
- Buy: 33 analysts
- Hold: 7 analysts
- Sell: 1 analyst
- Strong Sell: 0 analysts
86% of the analyst base rates SNOW at Buy or Strong Buy, reflecting broad conviction that the data cloud category is structurally sound. The Street has largely dismissed recession concerns and is modeling continued enterprise adoption acceleration driven by AI and analytics workloads.
Price Target Analysis: The average 12-month price target sits at $185.30, implying 17.7% upside from current levels of $157.47. This consensus suggests that analysts believe current weakness is a buying opportunity, not a bearish signal. The median target of $182.00 and the distribution (75th percentile: $192.00, 25th percentile: $168.00) all point to constructive positioning.
Recent Analyst Actions:
- Morgan Stanley (May 14, 2026): Maintained Overweight with $195 price target. Noted AI-driven data consolidation accelerating customer expansion revenue.
- Goldman Sachs (May 10, 2026): Upgraded to Buy from Neutral with $188 price target. Cited margin expansion as most underappreciated catalyst.
- Stifel (May 8, 2026): Maintained Buy with $178 price target. Reiterated that software valuation reset has created favorable entry point.
What This Means for SNOW Stock
Current Valuation: At $157.47, SNOW trades at approximately 28.1x forward earnings (using $5.60 consensus EPS for full FY2027). The five-year average forward multiple for SNOW is 38.2x, meaning the stock has compressed 26% in multiple terms. This compression reflects broader software sector rotation and profit-taking into near-term earnings uncertainty.
Support and Resistance: The 90-day low sits at $118.30 (established during the May software selloff), while 90-day resistance is $159.83. Current price is pinned just below that resistance, suggesting a breakout/breakdown point is imminent on earnings. A beat and strong guidance could trigger a run toward $180-$190. A miss or cautious guidance could push the stock down to test $145 support.
Options Market Implied Move: At-the-money straddle pricing suggests the market is pricing a 6.8% post-earnings move (either direction). This is below SNOW's historical post-earnings volatility of 9-12%, signaling that traders are expecting contained reaction — likely because consensus is already reflecting realistic expectations.
YTD Performance Context: SNOW is down 11.7% YTD, but the stock has outperformed peers like Datadog (down 18%) and Elastic (down 22%), suggesting relative stability. On the SNOW stock page, you can track daily volume and level-2 order book pressure to gauge institutional conviction during earnings reaction.
Frequently Asked Questions
When does Snowflake report Q1 FY2027 earnings?
Snowflake reports earnings on Tuesday, May 27, 2026, after the market closes (approximately 4:05 PM ET). Management will host a conference call and webcast following the release. Investors can register on the Snowflake investor relations website.
What is the Wall Street consensus EPS estimate for SNOW Q1 FY2027?
Wall Street consensus is $0.3241 in adjusted EPS and $1.35B in revenue for Q1 FY2027. This represents 80.1% YoY EPS growth and 46.7% YoY revenue growth compared to Q1 FY2026.
Does Snowflake typically beat earnings estimates?
Yes. In the past four quarters, Snowflake has beaten EPS estimates by an average of 16.4%, with beats ranging from 10.3% to 29.2%. This suggests management guides conservatively and executes reliably. However, past performance does not guarantee future results.
What is the average price target for SNOW stock?
The average 12-month price target from Wall Street analysts is $185.30, implying 17.7% upside from current levels of $157.47. This reflects broad analyst conviction that current weakness presents a buying opportunity for growth-focused portfolios.
Why did SNOW stock decline 11.7% year-to-date?
The decline reflects broader software sector rotation as investors reassess valuations in a higher-rate environment. concerns over growth deceleration and margin pressure across the SaaS cohort pressured SNOW alongside peers. However, improved profitability and AI adoption momentum have limited downside relative to the broader SaaS index.