Snowflake shares jumped 11.5% to $199.6 on Thursday following the cloud data company's impressive first-quarter earnings that demonstrated resilient enterprise software spending amid broader economic concerns.
The data storage giant delivered its first-ever $1 billion revenue quarter, with product revenue growing 26% year-over-year as customers increased their consumption of compute, storage, and data transfer services. Adjusted earnings per share of $0.24 beat Wall Street's $0.21 consensus estimate.
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Create account Try a demo Download mobile app Download mobile appSnowflake raised its full-year product revenue guidance to $4.33 billion from $4.28 billion, exceeding the $4.29 billion market consensus. The company also projected second-quarter product revenue of $1.035-$1.045 billion, indicating roughly 25% growth.
"Snowflake delivered a strong beat and raise out of the gate to start FY26 driven by both core momentum and the adoption of new workloads," said Truist Securities analyst Joel Fishbein, who raised his price target to $235 from $210.
The earnings highlight software companies' ability to weather economic headwinds from potential Trump administration tariffs and geopolitical tensions. CFO Mike Scarpelli noted on the earnings call that tariff concerns haven't impacted new customer acquisition yet.
Snowflake (D1)
The stock is on its way to retest its 2024 highs after breaking above the recent high at $192. Bulls will aim to retest the all-time high at $234, while bears may target the $160s — a zone where multiple SMAs converge. The RSI has entered the overbought zone, while the MACD is widening after nearly forming a bearish crossover.
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