New York, Feb 26, 2026, 11:30 a.m. EST — Regular session
- Snowflake stock climbed in late-morning trading, with investors digesting the company’s new guidance and AI announcements.
- Traders are eyeing whether the move sticks, following a whipsaw after-hours response to the results.
Snowflake Inc climbed roughly 3.6% to $175.47 late Thursday morning, fueled by its latest quarterly numbers and annual outlook. Shares have swung from $173.37 up to $184.42 during the session, following a Wednesday close at $169.34. 1
The report lands as markets fret over the ripple effects of generative AI spending across the software stack. What investors are watching for: do these AI projects actually create ongoing data workloads, or are they just isolated pilots and hype?
Investors keep a sharp eye on Snowflake’s results—customer usage tends to swing fast, with revenue responding in real time. This quarter, along with the outlook, is shaping up as a gut check on whether “AI demand” is still mostly hype or actually translating into paid consumption.
Snowflake is projecting fiscal 2027 product revenue at $5.66 billion—topping the $5.50 billion consensus from analysts polled by LSEG. The company’s first-quarter product revenue guidance also edged past expectations. Still, shares slipped roughly 2% in after-hours trading Wednesday. “Investors are skeptical about all software companies right now,” D.A. Davidson’s Gil Luria said. CEO Sridhar Ramaswamy told Reuters that more than 2,500 customers are now using Snowflake Intelligence. He pointed to the company’s largest deal so far, clocking in at “over $400 million.” Snowflake also sealed multi-year $200 million deals with both OpenAI and Anthropic, and struck a $600 million acquisition of Observe. 2
Snowflake posted $1.28 billion in revenue for the quarter ended Jan. 31, marking a 30% jump year-over-year, with product revenue also gaining 30% to $1.23 billion, according to its SEC earnings release. Remaining performance obligations hit $9.77 billion, up 42%, while net revenue retention landed at 125%, showing existing customers are spending more than they did a year ago. For the first quarter, the company sees product revenue coming in between $1.262 billion and $1.267 billion and is targeting a non-GAAP operating margin of 9%, excluding items such as stock-based compensation. 3
The question now is whether these “agentic” tools—AI built to move tasks forward—will spark enough platform activity to balance out pricing headwinds. Snowflake’s pitch: it wants to be the go-to layer for storing, managing, and running the data those systems require.
Still, this market comes down hard on any whiff of deceleration. Customers pulling back usage—or AI projects lingering in pilot—can turn a consumption-driven setup into a rough quarter fast, even if the bigger picture narrative stays intact.
Investors often balk at deals and acquisitions that require heavy upfront spending. For a company still touting “durable growth,” the margin outlook is likely to weigh just as much as top-line gains.
Investing.com lists May 27 as the next earnings date for Snowflake, marking a key moment for traders watching usage patterns and margins. 4
