Snowflake (SNOW) Earnings Sept 2: $6bn Promised to AWS, 75% Margin Guided

TL;DR

• Snowflake reports fiscal Q2 2027 after the close on Wednesday, September 2, with the call at 2:00pm PT / 5:00pm ET. The company set both in its own release.
• Product revenue is guided to $1,415m to $1,420m, up 30%, against the 34% it delivered in Q1. Management raised the full year to $5.84bn and still guided the rate down.
• The stock closed Friday at $328.92, up 178% from its 52-week low of $118.30 and 3.8% below the top of the range. That is about 19.5x the full-year product revenue guide.
• The average analyst target is $302.29, roughly 8% below where the stock actually trades. Evercore ISI went to $360 on August 10 and BTIG to $340 on August 1, so the spread inside the consensus is wide.
• Snowflake committed $6bn to AWS over five years alongside the Q1 print. Against a 75% guided product gross margin, that commitment and the margin line have to be reconciled, and the arithmetic below is where I would start.

The Board

What Snowflake delivered in Q1, what it guided for Q2, and the cloud bill underneath both.

When Does Snowflake Report Earnings?

Snowflake releases fiscal Q2 2027 results for the quarter ended July 31, 2026 after the US market closes on Wednesday, September 2, 2026, with the conference call at 2:00pm PT / 5:00pm ET. That comes from Snowflake's own scheduling release.

It lands two days after Palo Alto Networks closes its fiscal year on September 1, and a week after the August 26 cluster of Nvidia, Salesforce and CrowdStrike. The earnings calendar has the rest.

Worth flagging, because it tripped this site's own calendar until today: several aggregators still carry Snowflake on August 26, presumably rolled forward from last year's late-August slot. The company's release says the 2nd. Consensus for the quarter is $0.45 of EPS on $1,480.7m of total revenue across 43 analysts, with the published spread running $0.41 to $0.54.

The Quarter That Got the Stock Here

Q1 FY27, reported May 27, was the strongest print Snowflake has filed. Product revenue of $1,334.3m grew 34%, total revenue of $1,391.0m grew 33%, and the results release put net revenue retention at 126% with remaining performance obligations of $9.21bn, up 38%.

That RPO figure is the one I keep coming back to. Contracted future revenue growing 38% while recognised revenue grows 34% means the book is filling faster than it is emptying. It is the mirror image of the setup at CrowdStrike, where ARR is growing slower than reported revenue, and it is the single best argument the bulls have.

Underneath it: 779 customers spending more than $1m on product in the trailing year, up 29%, and 813 of the Forbes Global 2000. Non-GAAP operating margin of 11.9%, non-GAAP EPS of $0.39, free cash flow of $232.8m. Management raised the full-year product revenue guide from $5.66bn to $5.84bn and the operating margin guide from 12.5% to 13.5% in the same breath. The stock rose as much as 36% that day.

The Guide Says Deceleration, Loudly

Take the company's three published numbers and the rest of the year falls out of them.

Product revenue was $1,334.3m in Q1. Q2 is guided to $1,417.5m at the midpoint. The full year is $5,840m. Subtract and the second half has $3,088.2m left to deliver. Run the same division against the implied prior-year quarters and that back half grows about 30%, against the 34% Q1 just posted. I derived those last two figures from Snowflake's own guidance; the company does not publish them.

So the guide bakes a four-point deceleration into a business the market has repriced by 178% off the April low. Snowflake has beaten its own product revenue guide every quarter of this cycle, and I expect it to beat this one. The question on September 2 is not the beat. It is whether the second-half number moves up enough to justify a stock trading at 19.5 times the revenue it is being raised toward.

The $6bn Line Item

Alongside Q1, Snowflake committed $6bn to AWS over five years, per its own announcement, covering Graviton processors and GPU instances for training and inference. The commitment has stepped from $1.2bn at the 2020 IPO to $2.5bn in 2023 to $6bn now.

Set it against the margin guide. Snowflake guided FY27 non-GAAP product gross margin to 75.0%, which puts product cost of revenue near $1,460m on the $5,840m of guided product revenue. The AWS commitment averages $1.2bn a year. That is roughly 82% of the entire guided product COGS line going to one vendor, before Azure and Google Cloud are paid anything at all.

Both figures cannot describe year one, which tells me the commitment ramps hard toward the back of the five years rather than running flat. That is a reasonable structure for a deal built around AI workloads that barely exist yet. It also means the margin guide is easiest to hit now and gets harder later, and Snowflake has not published the annual shape. I would ask for it on the call.

What the Sell Side Is Actually Saying

The consensus target across 51 analysts is $302.29, below Friday's $328.92 close. On the average published view, the stock is about 8% too expensive right now.

That average is doing a lot of work, though. Evercore ISI moved to $360 on August 10 and BTIG to $340 on August 1, both above the price, and both dated inside the last two weeks. A consensus average built from targets set at different times in a stock that has nearly tripled since April measures publication lag as much as it measures opinion. I would weight the fresh ones and treat the average as a floor on how wide the disagreement is.

What I Am Watching on the Second

• The second-half product revenue guide. Q2 itself is nearly spoken for. The raise, or the absence of one, is the whole reaction.
• Net revenue retention. 126% is expansion-led growth. A print starting with a 12 keeps the multiple; a 119 would not.
• Consumption commentary on Cortex and Snowflake Intelligence. Consumption revenue turns on workloads actually running, and the AI line is where the acceleration was said to come from.
• Any annual shape for the AWS commitment. It decides whether the 13.5% operating margin guide is a floor or a ceiling.

No options play is logged here. I could not source a live September chain against Friday's close, and quoting a structure without an entry price gives a call nobody can score later.

The One-Line Read

Snowflake raised the year and guided the growth rate down in the same release. At 19.5 times that raised guide, the September print has to move the second half up, not merely clear a bar already priced in.