Strong customer expansion, rising obligations, and disciplined execution drive durable growth outlook
Snowflake (SNOW) reported strong fourth-quarter and full-year fiscal 2026 results, highlighting accelerating AI adoption, expanding enterprise penetration, and continued customer growth.
For the fourth quarter ended January 31, Snowflake generated $1.28 billion in total revenue, with product revenue reaching $1.23 billion — up 30% year over year. The company posted a net revenue retention rate of 125%, reflecting strong customer expansion within its existing base. Snowflake added 740 net new customers during the quarter, a 40% year-over-year increase, and now counts 733 customers generating more than $1 million in trailing 12-month product revenue — up 27% from a year ago.
Remaining performance obligations climbed to $9.77 billion, representing 42% year-over-year growth, signaling strong future revenue visibility.
CEO Sridhar Ramaswamy emphasized Snowflake’s central role in the enterprise AI revolution, noting rapid adoption of Snowflake AI features across more than 9,100 accounts. Snowflake Intelligence expanded to nearly 2,500 accounts within three months, demonstrating growing demand for agentic AI capabilities built on its secure, cross-cloud platform.
For the full fiscal year, Snowflake reported $4.47 billion in product revenue, up 29% year over year. Non-GAAP product gross margin reached 76%, while adjusted free cash flow totaled $1.19 billion, reflecting disciplined financial management alongside growth.
Looking ahead to fiscal 2027, Snowflake expects product revenue of approximately $5.66 billion, representing 27% growth. The company projects continued margin improvement, including a 12.5% non-GAAP operating income margin and 23% adjusted free cash flow margin for the year.
Snowflake also expanded partnerships with Anthropic, Google Cloud, and OpenAI, while completing acquisitions including Observe and TensorStax to strengthen AI observability and data engineering capabilities.
With accelerating innovation, deepening enterprise adoption, and expanding AI integration, Snowflake appears well positioned to lead the next phase of AI-driven data infrastructure growth.
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