Snowflake (SNOW) SNOW Q2 Financial Results Summary
QuoteReporter
Snowflake (SNOW) Q2 2027: Revenue Growth Accelerates — Positive Outlook
Snowflake (NYSE: SNOW) reported its financial results for the second quarter of fiscal 2027, revealing a robust performance that exceeded expectations. The company achieved total revenue of $1.55 billion, marking a 35% year-over-year growth compared to $1.14 billion in the same quarter last year. This growth was driven primarily by product revenue, which reached $1.49 billion, reflecting a 37% increase from the previous year.
Key Financial Metrics:
- Total Revenue: $1.55 billion, up $405 million or +35% YoY
- Product Revenue: $1.49 billion, up $404 million or +37% YoY
- Net Revenue Retention Rate: 126%
- Customers with Trailing 12-Month Product Revenue > $1 Million: 828, up 27% YoY
- Remaining Performance Obligations: $9.00 billion, up 30% YoY
Analyst View:
This quarter is a positive outcome for shareholders, as Snowflake not only demonstrated strong revenue growth but also improved its operational efficiency. The net revenue retention rate of 126% indicates that existing customers are increasing their spending, which is a strong sign of customer satisfaction and product value. Furthermore, the company has raised its full-year product revenue growth guidance to 36%, up from a previous estimate of 31%. This upward revision reflects confidence in continued demand for its services, particularly in the AI sector.
Additional Highlights:
- Customer Growth: Snowflake added 692 net new customers in the quarter, a 32% increase year-over-year, including 14 new Forbes Global 2000 customers.
- AI Momentum: The company reported significant growth in its AI offerings, with CoCo surpassing 9,100 accounts and CoWork expanding to 5,800 accounts.
- Product Velocity: Over 330 product capabilities were launched in the first half of fiscal 2027, a 35% increase year-over-year.
Financial Outlook:
For the third quarter of fiscal 2027, Snowflake expects:
- Product Revenue: Between $1,588 million and $1,593 million, representing 37% to 38% YoY growth.
- Non-GAAP Operating Margin: 15.5%
- Weighted-Average Shares for EPS Calculation: 382 million
For the full fiscal year 2027, the company anticipates:
- Product Revenue: $6,070 million, representing 36% YoY growth.
- Non-GAAP Product Gross Margin: 74.0%
- Non-GAAP Operating Margin: 14.5%, up from previous guidance of 13.5%.
Conclusion:
Investors should keep an eye on Snowflake's continued expansion in the AI space and its ability to maintain high customer retention rates. The upcoming quarter will be crucial as the company aims to sustain its growth trajectory and capitalize on the increasing demand for data cloud services. The raised guidance and strong customer metrics suggest that Snowflake is well-positioned to navigate the competitive landscape and deliver value to its shareholders.
Note: The following tables are in thousands.
| Condensed Consolidated Statements of Operations | (in thousands, except per share data) | (unaudited) | |||
|---|---|---|---|---|---|
| Three Months Ended July 31, 2026 | 2025 | Six Months Ended July 31, 2026 | 2025 | ||
| Revenue | $1,543,519 | $1,144,204 | $2,931,747 | $2,187,728 | |
| Cost of revenue | 510,393 | 371,835 | 974,496 | 720,647 | |
| Gross profit | 1,033,126 | 773,369 | 1,957,251 | 1,466,081 | |
| Operating expenses | Sales and marketing | 611,119 | 501,910 | 1,206,537 | 960,549 |
| Research and development | 567,386 | 492,040 | 1,101,666 | 964,455 | |
| General and administrative | 120,202 | 119,435 | 249,376 | 329,042 | |
| Total operating expenses | 1,298,707 | 1,113,385 | 2,557,579 | 2,254,046 | |
| Operating loss | -265,581 | -340,016 | -600,328 | -787,965 | |
| Interest income | 41,975 | 49,467 | 83,143 | 102,678 | |
| Interest expense | -2,000 | -2,074 | -4,127 | -4,145 | |
| Other income (excluding net loss before income tax) | 34,712 | -4,985 | 25,148 | -33,054 | |
| Income tax Provision for income tax | 3,430 | 62 | 2,341 | 5,791 | |
| Net loss Less net income attributable to noncontrolling interest | — | 87 | — | 227 | |
| Net loss attributable to Snowflake Inc. | -191,894 | -298,657 | -487,831 | -728,483 | |
| Net loss per share attributable to Snowflake Inc. common stockholders and diluted | -0.55 | -0.89 | -1.40 | -2.18 | |
| Weighted-average shares used in computing net loss per share attributable to Snowflake Inc. common stockholders | 349,394 | 335,226 | 347,405 | 333,920 |
| Condensed Consolidated Balance Sheets | (in thousands) | (unaudited) |
|---|---|---|
| July 31, 2026 | January 31, 2026 | |
| Assets Current assets: Cash and cash equivalents | 1,707,187 | 2,828,163 |
| Short-term investments | 637,508 | 1,201,523 |
| Accounts receivable, net | 718,464 | 1,303,740 |
| Deferred commissions, current | 222,084 | 214,058 |
| Prepaid expenses and other current assets | 208,593 | 195,128 |
| Total current assets | 3,493,836 | 5,742,612 |
| Long-term investments | 1,984,482 | 755,013 |
| Property and equipment, net | 207,981 | 248,611 |
| Operating lease right-of-use assets | 285,019 | 274,897 |
| Goodwill | 1,639,003 | 1,194,367 |
| Intangible assets, net | 426,527 | 246,916 |
| Deferred commissions, non-current | 222,581 | 241,759 |
| Other assets | 431,030 | 428,320 |
| Total assets | 8,690,459 | 9,132,495 |
| Liabilities and Stockholders’ Equity Current liabilities: Accounts payable | 185,250 | 145,559 |
| Accrued expenses and other current liabilities | 908,005 | 879,537 |
| Operating lease liabilities, current | 59,787 | 49,598 |
| Deferred revenue, current | 2,568,489 | 3,346,997 |
| Total current liabilities | 3,721,531 | 4,421,691 |
| Convertible senior notes, net | 2,283,985 | 2,279,827 |
| Operating lease liabilities, non-current | 420,043 | 411,689 |
| Deferred revenue, non-current | 27,756 | 14,440 |
| Other liabilities | 87,480 | 80,746 |
| Stockholders’ equity | 2,149,664 | 1,924,102 |
| Total liabilities and stockholders’ equity | 8,690,459 | 9,132,495 |
Disclaimer
The content on MarketsFN.com is provided for educational and informational purposes only. It does not constitute financial advice, investment recommendations, or trading guidance. All investments carry risk and past performance does not guarantee future results. You are solely responsible for your investment decisions and should conduct independent research and consult a qualified financial advisor before acting. MarketsFN.com and its authors are not liable for any losses or damages arising from the use of this information.
