01—Abstract
Summary
Summary of the 10-Q filed May 29, 2026. Cited figures are marked; the original filing is the authoritative source.
Snowflake Inc. reported strong revenue growth of 33% year-over-year for the three months ended April 30, 2026, reaching $1.39 billiona.
This growth was primarily driven by increased consumption from existing customers, as indicated by a net revenue retention rate of 126%. The company also saw a significant increase in customers spending over $1 millionb annually. Despite the revenue growth, Snowflake continues to operate at a loss, with a net loss of $295.6 million for the quarter, a decrease from the previous year's net loss of $430.0 million.
This loss is attributed to substantial investments in sales and marketing, and research and development, including significant stock-based compensation expenses. The company acquired Observe, Inc. for $595.8 millionc during the quarter, which added goodwill and intangible assets to the balance sheet. Snowflake's cash position remains strong with $4.4 billion in cash, cash equivalents, and investments.
The company is actively managing its capital through stock repurchases and has a substantial remaining authorization for future repurchases. The company also amended a significant cloud infrastructure agreement, committing to a $6.0 billiond spend over five years.
02—Key points
Key Highlights
- Revenue increased by 33% to $1.39 billion for the three months ended April 30, 2026, compared to $1.04 billion in the prior year period.
- Net revenue retention rate remained strong at 126% as of April 30, 2026.
- Number of customers with trailing 12-month product revenue greater than $1 million increased to 779 from 604 in the prior year.
- The company reported a net loss of $295.6 million for the quarter, an improvement from a net loss of $430.0 million in the same period last year.
- Snowflake completed the acquisition of Observe, Inc. for $595.8 million in February 2026.
- Total assets decreased to $8.55 billion from $9.13 billion at the prior fiscal year-end.
- The company amended a significant cloud infrastructure agreement, committing to a cumulative minimum spend of $6.0 billion over five years.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q1 FY2027, Snowflake lost $0.21.
- Revenue$1.39B100.0%
- Cost of revenue−$464.5M33.4%
- Gross profit$926.5M66.6%
- Operating costs−$1.25B90.1%
- Operating income−$326.2M23.4%
- Interest, other & tax$30.6M2.2%
- Net income−$295.6M21.2%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2027filed May 29, 2026Financial Statements
Q1 FY2027 against Q1 FY2026
| Line item | Q1 FY2027Q1 FY2026 | Change |
|---|---|---|
| Revenue | $1.39B$1.04B | +33.5% |
| Cost of Revenue | $464.50M$348.79M | +33.2% |
| Gross Profit | $926.45M$693.29M | +33.6% |
| R&D Expenses | $534.94M$472.40M | +13.2% |
| Operating Expenses | $1.25B$1.14B | +9.8% |
| Operating Income | -$326.15M-$447.26M | +27.1% |
| Net Income | -$295.57M-$430.09M | +31.3% |
| EPS (Basic) | $-0.86$-1.29 | +33.3% |
| EPS (Diluted) | $-0.86$-1.29 | +33.3% |
| Shares Outstanding (Basic) | 345.39M332.66M | +3.8% |
| Shares Outstanding (Diluted) | 345.39M332.66M | +3.8% |
05—Questions
Frequently Asked Questions
What was Snowflake's revenue performance in the reported quarter?
Snowflake reported a 33% year-over-year increase in revenue for the three months ended April 30, 2026, reaching $1.39 billion. This growth was primarily driven by increased consumption from existing customers, as evidenced by a net revenue retention rate of 126%.
Is Snowflake profitable?
No, Snowflake continues to operate at a net loss. For the three months ended April 30, 2026, the company reported a net loss of $295.6 million. While this is an improvement from the $430.0 million net loss in the prior year's comparable period, the company is still investing heavily in growth, which contributes to the ongoing losses.
What significant corporate actions did Snowflake undertake during the quarter?
During the quarter, Snowflake acquired Observe, Inc. for $595.8 million. Additionally, the company amended a key cloud infrastructure agreement, committing to a minimum spend of $6.0 billion over five years. The company also continued its stock repurchase program.
How is Snowflake's cash position?
Snowflake maintains a strong liquidity position, with approximately $4.4 billion in cash, cash equivalents, and short-term and long-term investments as of April 30, 2026.
06—Continue