Snowflake (SNOW) Q3 2025 earnings summary

Executive summary

• Q3 FY25 revenue reached $942.1M, up 28% year-over-year; product revenue was $900.3M, up 29% year-over-year, driven by increased platform consumption and new customer additions.

• Net revenue retention rate stood at 127% as of October 31, 2024, reflecting strong expansion within existing accounts.

• Customer base grew to 10,618, including 754 Forbes Global 2000 customers, with 542 customers generating over $1M in trailing 12-month product revenue, up 25% year-over-year.

• Significant product innovation, especially in AI (Cortex), and strong go-to-market execution drove growth.

• Operational rigor and efficiency improvements contributed to profitability while supporting aggressive investment in innovation.

Financial highlights

• Q3 FY25 product revenue grew 29% year-over-year to $900.3M; total revenue for the quarter was $942.1M.

• Remaining performance obligations (RPO) totaled $5.7B, up 55% year-over-year.

• Non-GAAP product gross margin was 76% for Q3 FY25; GAAP product gross margin was 71%.

• Non-GAAP operating margin was 6%; non-GAAP net income was $73.3M (8% margin); GAAP net loss was $327.9M (35% margin).

• Free cash flow was $78.2M (8% margin); adjusted free cash flow was $86.8M (9% margin).

Outlook and guidance

• Q4 FY25 product revenue guidance: $906M–$911M, representing 23% year-over-year growth.

• Full-year FY25 product revenue guidance: $3.43B, up 29% year-over-year.

• Full-year non-GAAP product gross margin expected at 76%, non-GAAP operating margin at 5%, and adjusted free cash flow margin at 26%.

• Guidance reflects potential dilution from convertible senior notes issued in 2024.