Snowflake Q2 Earnings: Watch These 3 Numbers Before Buying SNOW Stock

Snowflake (SNOW) is a cloud data platform company that helps businesses store, analyze, and increasingly use their data to power AI applications and workflows. The company had a strong start to fiscal 2027, with product revenue up 34% year-over-year (YoY) to $1.3 billion, while net revenue retention (or NRR) reached 126% in Q1. However, this performance has pushed the stock up 48% year-to-date (YTD), setting a very high bar for Q2, which Snowflake will release on Sept. 2. 

Here are three numbers investors should watch in the Q2 report before buying SNOW stock.

1. Product Revenue: Can Snowflake Keep Growing Above 30%?

Snowflake’s biggest achievement in the first quarter was that it returned to stronger growth as AI became a larger part of the company's revenue engine. Product revenue reached $1.33 billion, an increase of 34% YoY. This marked a significant increase from the 30% growth in Q4 and 29% in Q3 of 2025.

Management emphasized that customers are now moving workloads onto Snowflake partly because they need the data, governance, and infrastructure required to develop AI applications. At the same time, Snowflake's own AI offerings, particularly Cortex Code, are becoming another source of revenue and pushing clients to use more of the underlying platform. For the second quarter, management had guided product revenue around $1.4 billion, which would represent an increase of 30%. While it would be lower than Q1, it would imply that Q1 acceleration wasn't just a one-quarter event. Analysts expect total revenue growth of around 36% to $1.5 billion in the second quarter.

Furthermore, management had earlier increased the full-year revenue forecast to $5.84 billion, representing 31% YoY growth, slightly lower than the consensus estimate of $6.1 billion. As a result, investors should watch Q2; if Snowflake beats revenue estimates and also reiterates or raises its full-year outlook, then it would suggest strength in both its core data platform and AI business.  

2. RPO Growth: Are Customers Still Locking in Future Spending?

The second important number to watch is Snowflake's remaining performance obligations, or RPO, which increased 38% YoY to $9.2 billion. Watching RPO is crucial since it informs investors about contractual business that will be recognized as revenue in upcoming quarters. The company added 616 net new customers in Q1, a 38% YoY increase. The company also said 64 customers were spending more than $10 million on a trailing 12-month basis. In addition, 79 customers had crossed the $1 million threshold. This shows Snowflake isn’t just relying on a handful of new customers to generate growth.

3. Net Revenue Retention: Are Existing Customers Spending More?

In the first quarter, net revenue retention (NRR) reached 126%, meaning Snowflake generated more revenue from its existing customer base. This doesn’t yet include revenue generated from new customers. Management attributed this growth to customers using more of Snowflake's platform, such as Cortex Code, or CoCo. Notably, over 7,100 accounts used CoCo, while accounts employing Snowflake Intelligence had more than doubled in a row.

In Q2, if NRR stays near Q1’s level of 126% while AI adoption continues climbing, it will show investors that AI is translating into actual customer spending rather than simply generating attention. Analysts even expect Snowflake’s revenue and earnings to increase by 25.6% and 39.8%, respectively, in fiscal 2028. Snowflake's growth story is compelling, but the stock is no longer cheap. SNOW stock trading at a forward P/E of 121x suggests investors expect the company’s momentum to continue. With SNOW already pricing in a lot of future growth, investors may be better off waiting for a more attractive entry point rather than chasing the stock after its strong 51% rally this year. 

On Wall Street, SNOW stock is an overall "Strong Buy." Of the 45 analysts covering SNOW, 36 rate it as a "Strong Buy," three have a "Moderate Buy" rating, five have a "Hold" rating, and one analyst has a "Strong Sell" rating. The stock is currently almost matching its average target price. However, based on the high price target of $500, analysts see SNOW stock climbing as much as 54% from current levels.