Snowflake posts 33% revenue growth in Q1 FY27, beating estimates and boosting AI cloud confidence

Snowflake reported a strong Q1 FY27 with 33% revenue growth, surpassing analyst expectations by 5.3 percentage points. The company's AI-driven product revenue also grew 33%, and its backlog increased 38% to about $9.2 billion, signaling strong demand. Gross margins improved to 66.6% despite new AI product launches and acquisitions, with management targeting 75% margins for the year. The stock rallied 35-36% post-earnings, and valuation remains attractive at 14-15 times forward sales, supported by partnerships with Amazon AWS.