Snowflake (SNOW) Q4 2025 earnings summary

Executive summary

• Q4 FY25 product revenue reached $943.3 million, up 28% year-over-year; full-year FY25 product revenue was $3.46 billion, up 30% year-over-year.

• Net revenue retention rate held at 126% in Q4 FY25.

• Over 4,000 customers used AI/ML features weekly, reflecting strong adoption of AI and data engineering products.

• Expanded partnerships, notably with Microsoft, integrating OpenAI models and launching Cortex Agents for agent orchestration.

• Total customers grew 19% year-over-year to 11,159, with 580 generating over $1 million in product revenue, up 27% year-over-year.

Financial highlights

• Q4 non-GAAP product gross margin was 76%; full-year FY25 non-GAAP product gross margin was also 76%.

• Q4 non-GAAP operating margin was 9%; full-year FY25 non-GAAP operating margin was 6%.

• FY25 non-GAAP adjusted free cash flow margin was 26%, with adjusted free cash flow of $941.5 million.

• $1.9 billion used to repurchase shares in FY25; $2 billion remains authorized through March 2027.

• Ended FY25 with $5.3 billion in cash, cash equivalents, and investments.

Outlook and guidance

• Q1 FY26 product revenue expected between $955–$960 million, up 21–22% year-over-year.

• FY26 product revenue guidance is $4.28 billion, representing 24% year-over-year growth.

• FY26 non-GAAP product gross margin expected at 75%, operating margin at 8%, and adjusted free cash flow margin at 25%.

• Stock-based compensation as a percent of revenue expected to decrease to 37% in FY26.

• Q1 FY26 non-GAAP operating income guidance: $47–$48 million (5% margin).