Snowflake’s $80 Billion Data Bet Is Starting to Show Results

Quick Read

• SNOW's $9.21 cardinal contracted backlog surged 38% YoY, outpacing gross maturation and signaling customers are committing to longer, larger deals.

• Management raised FY27 merchandise gross guidance to $5.84 billion, driven by 13,600+ accounts adopting AI capabilities and a $6 cardinal AWS deal.

• Shares jumped from $177 to $255 the time aft Q1 earnings, portion existing customers spent 26% much twelvemonth implicit year.

• Act now: the expert who called NVIDIA successful 2010 conscionable named his apical 10 AI stocks — and Snowflake didn't marque the cut. Grab the names FREE today.

Snowflake's rubric stake references an $80 cardinal information opportunity, but the fig successful the Q1 FY27 filing that really validates the thesis is the size of the contracted backlog. That contracted fig is what semipermanent holders should anchor on.

The Number

Snowflake (NYSE:SNOW) closed Q1 FY27 with $9.21 cardinal successful remaining show obligations, up 38% twelvemonth implicit year. The institution reported the fig connected May 27, 2026. RPO represents contracted concern Snowflake has booked with customers but has not yet recognized arsenic revenue. This fig grew faster than the 33.48% quarterly gross increase, which is the tell.

What It Means

RPO is the backlog. When this fig accelerates past gross growth, customers are signing longer, larger contracts. Product gross for the 4th came successful astatine $1.33 billion, up 34% twelvemonth implicit year, which absorption described arsenic the strongest sequential dollar maturation successful the company's history. Net gross retention held astatine 126%, meaning existing customers spent 26% much than a twelvemonth ago.

Perhaps much important is the number of customers generating much than $1 cardinal successful trailing merchandise revenue. This fig reached 779 this past 4th (up 29% YoY), with Snowflake adding 616 nett caller customers (up 38% YoY), and showcasing 13,600+ accounts are present utilizing Snowflake AI capabilities.

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Market Reaction

Shares closed astatine $260.15 connected July 2, 2026, up 18.6% twelvemonth to day from a commencement of $219.36 connected December 31, 2025. On a one-week view, SNOW roseate 14.57%, moving from $227.06 connected June 25, 2026 to $260.15 connected July 2, 2026. On the one-year view, the banal is up 19.7% from $217.34 connected July 2, 2025. Following the Q1 net report, shares moved from $177.4949 astatine filing to $255.55 1 time after.

Bull Case

The $9.21 cardinal backlog is the foundation. Management raised full-year FY27 merchandise gross guidance to $5.84 billion, implying 31% growth, up from anterior guidance of $5.66 cardinal astatine 27%. Non-GAAP operating borderline guidance roseate to 13.5%, from 12.5%, and non-GAAP adjusted escaped currency travel borderline is guided astatine 23.0%. Q2 FY27 merchandise gross is guided to $1,415 cardinal to $1,420 million, oregon 30% growth.