10-QPeriod: Q2 FY2027

Snowflake Inc. Quarterly Report for Q2 Ended Jul 31, 2026

Filed September 4, 2026For Securities:SNOW

Summary

Snowflake Inc. reported revenue of $1.55 billion for the three months ended July 31, 2026, an increase of 35% year-over-year. The company continues to demonstrate strong growth, with product revenue up 37% year-over-year, driven by increased customer consumption and a healthy net revenue retention rate of 126%. While the company reported a net loss of $191.7 million for the quarter, this was an improvement compared to the prior year's net loss of $298.0 million, indicating progress towards profitability. The company's strategic acquisitions, including Natoma Labs and Observe Inc., are expected to contribute to future growth, particularly in the AI space, though they also contributed to a significant increase in goodwill and intangible assets. Financially, Snowflake maintains a strong liquidity position with approximately $4.3 billion in cash, cash equivalents, and investments as of July 31, 2026. The company also has approximately $9.0 billion in remaining performance obligations, suggesting continued revenue visibility. Management continues to invest heavily in sales and marketing and research and development to drive future growth, particularly in AI capabilities, which is reflected in increased operating expenses. However, these investments, coupled with the consumption-based revenue model, lead to operating losses despite top-line growth.

Key Highlights

  • 1Revenue increased by 35% year-over-year to $1.55 billion for the three months ended July 31, 2026.
  • 2Product revenue, the primary driver of growth, increased by 37% year-over-year.
  • 3Net revenue retention rate remained strong at 126% as of July 31, 2026, indicating robust customer expansion.
  • 4The company reported a net loss of $191.7 million for the quarter, an improvement from the previous year's net loss of $298.0 million.
  • 5Cash, cash equivalents, and investments stood at $4.3 billion as of July 31, 2026, providing ample liquidity.
  • 6Remaining Performance Obligations (RPO) reached $9.0 billion, providing visibility into future revenue.
  • 7Significant investments in acquisitions (Natoma Labs, Observe Inc.) and R&D, particularly in AI, continue to drive future growth potential.

Frequently Asked Questions

Snowflake's primary revenue driver is product revenue, which is recognized based on customer consumption of its cloud data platform. For the three months ended July 31, 2026, product revenue increased by 37% year-over-year to $1.49 billion, demonstrating strong customer adoption and expanded usage.

Snowflake is currently operating at a net loss. For the three months ended July 31, 2026, the net loss was $191.7 million. While this is a significant loss, it represents an improvement compared to the net loss of $298.0 million reported in the same period last year. The company continues to invest heavily in growth, which contributes to these operating losses.

Snowflake maintains a strong liquidity position. As of July 31, 2026, the company had approximately $4.3 billion in cash, cash equivalents, and investments. This liquidity provides the company with the financial flexibility to fund its operations, investments in growth, and potential strategic initiatives.

Snowflake has significant future revenue visibility, with approximately $9.0 billion in remaining performance obligations as of July 31, 2026. Of this amount, the company expects to recognize approximately 54% as revenue in the next 12 months. This substantial RPO indicates strong contracted future revenue.

Snowflake has made strategic acquisitions of Natoma Labs and Observe, Inc., primarily to enhance its AI capabilities. These acquisitions are expected to drive future growth, but they also contributed to an increase in goodwill and intangible assets on the balance sheet. The integration of these businesses is a key focus for the company.