Snowflake (SNOW) Morgan Stanley Technology, Media & Telecom Conference 2026 summary

Core business performance and strategy

• Data modernization and agentic AI adoption have driven core business durability, with Snowflake Intelligence and agentic systems unlocking new value from data estates throughout 2025.

• Migration projects, historically complex and lengthy, are accelerating due to coding agents, with expectations to resolve most migration challenges this year.

• The platform is evolving from data governance and analytics to enabling AI-native applications and seamless, in-situ data actions.

• Governance, security, and auditable access remain foundational, positioning the platform as a trusted analytic layer for enterprises.

• Execution and product innovation, especially with Cortex Code, are seen as critical differentiators in a competitive landscape.

Product innovation and AI integration

• Cortex Code, a native coding agent, has delivered 10x improvements in deployment speed and enabled rapid, customized implementations.

• The tool democratized coding and automation, sparking creativity and productivity across non-technical roles, and is now integral to internal workflows.

• Cortex Code and Snowflake Intelligence are positioned as complementary, with the former enabling programming capabilities and the latter targeting business users.

• Both products are powered by leading AI models and are designed to drive adoption and unlock enterprise-wide productivity.

• Monetization is consumption-based, with no separate product fee, aligning incentives with customer value and usage.

Financial performance and outlook

• Q4 saw product revenue growth re-accelerate to 30%, a $9B RPO balance (up 42% YoY), and the signing of the largest deal ever, plus seven additional nine-figure deals, all with existing customers.

• Free cash flow margin guidance is 25% for FY26 and 23% for FY27, with the Observe acquisition contributing a 150 basis point headwind.

• Gross product margin guidance remains at 75% for FY27, with AI products initially dilutive but offset by core business efficiencies.

• Revenue growth is now decoupled from headcount, with Q4 showing higher margins despite a reduction in force and minimal net hiring.

• Capital allocation priorities include reducing stock-based compensation, targeting GAAP profitability, maintaining a $1.1B buyback authorization, and selective acquisitions.