Snowflake (SNOW) Q4 2026 earnings summary

Executive summary

• Q4 FY26 product revenue reached $1.23 billion, up 30% year-over-year, with full-year product revenue at $4.47 billion, up 29% year-over-year.

• Total customers rose to 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% for Q4 FY26.

• Major customer wins included the largest contract in company history, exceeding $400 million, and seven nine-figure deals in Q4.

• AI adoption accelerated, with over 9,100 accounts using AI features, and significant expansion of the Forbes Global 2000 customer base to 790.

Financial highlights

• Q4 FY26 product revenue was $1.23 billion, up 30% year-over-year; full-year product revenue was $4.47 billion, up 29%.

• Remaining performance obligations (RPO) totaled $9.77 billion, up 42% year-over-year.

• Non-GAAP product gross margin was 75% in Q4 FY26 and 75.8% for FY26; non-GAAP operating margin was 10.5% for FY26.

• Non-GAAP adjusted free cash flow margin was 25.5% for FY26; Q4 adjusted free cash flow margin was 61%.

• Stock-based compensation declined from 41% of revenue in FY25 to 34% in FY26, with further reduction expected.

Outlook and guidance

• Q1 FY27 product revenue expected between $1.262 billion and $1.267 billion, up 27% year-over-year.

• FY27 product revenue guidance is $5.66 billion, up 27% year-over-year.

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

• Non-GAAP adjusted free cash flow margin guidance includes a 150 basis point headwind from the Observe acquisition.

• Observe expected to contribute about one percentage point to FY27 product revenue growth.