Snowflake Reports Financial Results for the Second Quarter of Fiscal 2026

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

Financial Highlights

For the second quarter of fiscal 2026, Snowflake reported:

• Revenue of $1.1 billion, representing a 32% year-over-year growth.
• Product revenue of $1.09 billion, also showing a 32% year-over-year increase.
• Net revenue retention rate stood at 125% as of July 31, 2025.
• Operating loss of $340.3 million on a GAAP basis, with a non-GAAP operating income of $127.6 million.
• Net cash provided by operating activities was $74.9 million, a 7% margin.
• Free cash flow was $58.2 million, a 5% margin, with adjusted free cash flow at $67.8 million, a 6% margin.

Business and Operational Highlights

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

• The company now has 654 customers with trailing 12-month product revenue greater than $1 million, a 30% year-over-year growth.
• 751 Forbes Global 2000 customers, representing a 5% year-over-year growth.
• Remaining performance obligations were $6.9 billion, a 33% year-over-year growth.

Strategic Initiatives and Corporate Developments

Snowflake continues to focus on strategic initiatives to drive growth and enhance shareholder value:

• The company highlighted the extensive use of its AI capabilities, with more than 6,100 accounts using Snowflake’s AI every week.
• Snowflake's platform is noted for its ease of use, connectivity, and trust across various industries.

Management's Perspective

CEO Sridhar Ramaswamy commented on the results, stating, "Snowflake delivered yet another strong quarter, with product revenue of $1.09 billion, up a strong 32% year-over-year, and remaining performance obligations totaling $6.9 billion. Thousands of customers are betting their business on Snowflake, and more than 6,100 accounts are using Snowflake’s AI every week. Customers love that our platform is easy to use, connected to enable fluid access to data wherever it sits, and trusted by companies of all sizes and industries. We have an enormous opportunity ahead as we continue to empower every enterprise to achieve its full potential through data and AI."

Future Outlook

Looking ahead, Snowflake provided guidance for the third quarter and full fiscal year 2026:

• Third Quarter Fiscal 2026: Product revenue is expected to be between $1.125 billion and $1.130 billion, representing a 25-26% year-over-year growth. Non-GAAP operating margin is projected at 9%.
• Full-Year Fiscal 2026: Product revenue is projected to be $4.395 billion, a 27% year-over-year growth. Non-GAAP product gross margin is expected to be 75%, with a non-GAAP operating margin of 9% and adjusted free cash flow margin of 25%.

SEC Filing: Snowflake Inc. [ SNOW ] - 8-K - Aug. 27, 2025