Snowflake (SNOW) Q4 2026 earnings summary

Executive summary

• Q4 FY26 product revenue grew 30% year-over-year to $1.23 billion, with full-year product revenue at $4.47 billion, up 29% year-over-year, driven by core business stability and accelerating AI workloads.

• Total customers reached 13,328, a 21% year-over-year increase, with 733 customers generating over $1 million in product revenue, up 27% year-over-year.

• Net revenue retention rate remained strong at 125%, and remaining performance obligations (RPO) reached $9.77 billion, up 42% year-over-year.

• Over 9,100 accounts are using AI features, with rapid adoption of products like Snowflake Intelligence and Cortex Code.

• Expanded partnerships and acquisitions, including Observe for $600 million and TensorStax, to enhance AI and data engineering capabilities.

Financial highlights

• FY26 non-GAAP product gross margin was 75.8%, with Q4 at 75%.

• FY26 non-GAAP operating margin expanded to 10.5%, with Q4 at 9%.

• FY26 non-GAAP adjusted free cash flow margin reached 25.5%, with Q4 at 43%.

• Stock-based compensation declined from 41% of revenue in FY25 to 34% in FY26, targeting 27% in FY27.

• Ended Q4 with $4.8 billion in cash, equivalents, and investments.

Outlook and guidance

• FY27 product revenue guidance is $5.66 billion, up 27% year-over-year; Q1 FY27 product revenue expected between $1.262–$1.267 billion.

• FY27 non-GAAP product gross margin guided at 75%; operating margin at 12.5%; adjusted free cash flow margin at 23%.

• Observe expected to contribute 1 percentage point to FY27 revenue growth.

• Hiring in FY27 weighted to Q1 due to Observe integration.