Snowflake earnings preview: Fiscal Q1 2026
Snowflake Inc. (NYSE: SNOW) will report fiscal Q1 2026 results on Wednesday, May 21, 2025, after the market close. Here are the key numbers that we’re watching.
Snowflake Q1 2026 earnings preview
According to Visible Alpha consensus, total revenues of $963.5 million and operating income of $55.6 million are expected for Q1 2026. Operating profit expectations for the Q1 have moved up more than 15% from $47.6 million in November 2024 to now $55.6 million. However, these estimates are still lower than the initial estimates in January 2024. While profitability expectations for FY 2026 overall continue to move higher, overall revenue has remained around $4.3 billion, driven by the stability of Snowflake’s data platform. In December 2024, the company made several AI-related announcements at its Build conference. It will be interesting to hear the company’s commentary on the performance and outlook of their AI-related products and if there may be an upside impact to both revenue and the gross margin.
Currently, there is debate about the gross margin performance. Based on Visible Alpha consensus, the non-GAAP gross margin estimates range from 74.8% to 77.2% for Q1 2026. For FY 2026 and FY 2027, Visible Alpha consensus for gross margin has remained around 75% since last quarter and is still below the levels previously expected in January 2024. There are questions about whether the new AI-related products will contribute to an overall higher gross margin longer term.
The stock was a significant underperformer for most of last year, but since the November quarter it has been up a strong 41.8% on an improved revenue and profit outlook. Could the Q1 release provide another positive catalyst for the stock into FY 2026?
