Snowflake Reports Financial Results for the Third Quarter of Fiscal 2026

Snowflake, the AI Data Cloud company, has released its financial results for the third quarter of fiscal 2026, which ended on October 31, 2025. The company reported significant growth in several key financial metrics, reflecting its strong market position and operational performance.

Financial Highlights

For the third quarter of fiscal 2026, Snowflake reported:

• Revenue of $1.21 billion, representing a 29% year-over-year growth.
• Product revenue of $1.16 billion, also showing a 29% year-over-year increase.
• Net revenue retention rate stood at 125% as of October 31, 2025.
• Gross profit of $837.6 million, with a gross margin of 72% on a GAAP basis and $879.2 million with a 76% margin on a non-GAAP basis.
• Operating loss of $329.5 million, translating to a negative 27% margin on a GAAP basis, while non-GAAP operating income was $131.3 million, an 11% margin.
• Net cash provided by operating activities was $137.5 million, an 11% margin.
• Free cash flow was $113.6 million, a 9% margin, and adjusted free cash flow was $136.4 million, an 11% margin.

Business and Operational Highlights

Snowflake's operational performance was marked by several key metrics:

• The company now has 688 customers with trailing 12-month product revenue greater than $1 million, a 29% year-over-year growth.
• Snowflake serves 766 Forbes Global 2000 customers, a 4% year-over-year increase.
• Remaining performance obligations were $7.88 billion, representing a 37% year-over-year growth.

Strategic Initiatives and Corporate Developments

CEO Sridhar Ramaswamy highlighted the rapid adoption of Snowflake Intelligence, the company's enterprise AI agent, which has seen the fastest adoption ramp in Snowflake's history. This development is transforming how businesses interact with their data, delivering real-time, actionable intelligence. Additionally, Snowflake's strategic partnerships with leading AI model providers, cloud platforms, and application platforms are enhancing the entire data lifecycle with AI-driven capabilities.

Management's Perspective

CEO Sridhar Ramaswamy commented, "Snowflake delivered another strong quarter, with product revenue of $1.16 billion, up 29% year-over-year, and remaining performance obligations totaling $7.88 billion, up 37% year-over-year. Snowflake is the cornerstone for our customers’ data and AI strategies, driving real business impact at scale."

Future Outlook

For the fourth quarter of fiscal 2026, Snowflake provided the following guidance:

• Product revenue is expected to be between $1.195 billion and $1.200 billion, representing a 27% year-over-year growth.
• Non-GAAP operating income margin is projected to be 7%.
• Weighted-average shares used in computing net income per share attributable to Snowflake Inc. common stockholders—diluted is estimated at 377 million shares.

For the full year of fiscal 2026, the company expects:

• Product revenue to be approximately $4.446 billion, a 28% year-over-year growth.
• Non-GAAP product gross profit margin to be 75%.
• Non-GAAP operating income margin to be 9%.
• Adjusted free cash flow margin to be 25%.
• Weighted-average shares used in computing net income per share attributable to Snowflake Inc. common stockholders—diluted is estimated at 373 million shares.

Original SEC Filing: Snowflake Inc. [ SNOW ] - 8-K - Dec. 03, 2025