Summary
Snowflake ended fiscal 2025 with fourth-quarter revenue of $986.8 million, up 27.4% from the prior-year quarter. Gross profit rose 22.6% to $653.6 million, but gross margin slipped 2.6 percentage points to 66.2%. The quarter's operating loss was $386.7 million, and operating margin was negative 39.2%. Net loss attributable to Snowflake was $327.5 million. For the full fiscal year, revenue was $3.63 billion, up 29.2%. The full-year operating loss was $1.46 billion, and the net loss attributable to Snowflake was $1.29 billion. Diluted EPS for the full year was a loss of $3.86. The top line is still growing quickly, but profitability on a GAAP basis remains under pressure.
Customer metrics show a still-expanding platform, though with slower expansion in the existing base. Net revenue retention rate was 126% as of January 31, 2025, down from 131% a year earlier. Snowflake had 580 customers with trailing 12-month product revenue greater than $1 million, and 745 Forbes Global 2000 customers. Total customers reached 11,159, up from 9,384 a year earlier. The company said those large customers represented approximately 67% of product revenue for the trailing 12 months ended January 31, 2025. It also reported 110 customers with more than $5 million in trailing 12-month product revenue and 39 customers with more than $10 million. Remaining performance obligations were $6.9 billion, up 32.7% from the prior-year quarter. Current deferred revenue was $2.58 billion, up 17.3% from the prior-year quarter. Management expects approximately 48% of RPO to be recognized as revenue in the twelve months ending January 31, 2026, and said the weighted-average remaining life of capacity contracts was 2.4 years as of January 31, 2025.
Cash generation remained solid. Operating cash flow for the quarter was $432.7 million, up 25.6% from the prior-year quarter. For the full year, operating cash flow was $959.8 million, up 13.2%. Capital expenditures for the full year were $46.3 million, up 31.9%. Free cash flow, a non-GAAP measure, was $415.4 million in the quarter and $884.1 million for the full year. Adjusted free cash flow was $423.1 million in the quarter and $941.5 million for the full year. On a non-GAAP basis, operating income was $92.8 million in the quarter, a 9% margin, and $231.7 million for the full year, a 6% margin. Non-GAAP product gross profit was $715.3 million in the quarter, a 76% margin. Non-GAAP net income attributable to Snowflake was $112.1 million in the quarter. Those figures exclude stock-based compensation and related charges, which remain the main difference between GAAP and non-GAAP results.
Guidance for the first quarter of fiscal 2026 calls for product revenue of $955 million to $960 million and a non-GAAP operating margin of 5%. For the full fiscal year 2026, guidance calls for product revenue of $4.28 billion, a non-GAAP product gross margin of 75%, a non-GAAP operating margin of 8%, and an adjusted free cash flow margin of 25%. The company guides weighted-average diluted shares of 374 million for both the first quarter and the full year. The full-year outlook implies a step up from the 6% non-GAAP operating margin delivered in fiscal 2025.
Risks are mounting. The 10-K cites adverse macroeconomic conditions, including inflation and high interest rates, that can cause customers to rationalize budgets, prioritize cash flow management, and optimize consumption. Shortened contract durations and slower consumption growth are explicit concerns. The full-year gross margin was 66.5%, down 1.5 percentage points from the prior fiscal year. The full-year operating margin was negative 40.2%, down 1.1 percentage points. Those declines came alongside the full-year losses discussed above. Snowflake also faces competition, cybersecurity threat activity directed at customers, and the risk that new software releases or hardware improvements make its platform more efficient, which can reduce customer consumption. Management expects stock-based compensation to decrease as a percentage of revenue in fiscal 2026. The company ended the year with $2.0 billion available under its stock repurchase program after repurchasing 14.8 million shares for $1.9 billion during fiscal 2025. Subsequent to year-end through March 21, 2025, it repurchased 3.2 million shares for $490.6 million at a weighted-average price of $152.63.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2025 | Q3 FY2025 | QoQ | Q4 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $986.8M | $942.1M | +4.7% | $774.7M | +27.4% |
| Gross profit | $653.6M | $621.2M | +5.2% | $532.9M | +22.6% |
| Gross margin | 66.2% | 65.9% | +0.3 pp | 68.8% | -2.6 pp |
| Research & development | $492.5M | $442.4M | +11.3% | $364.5M | +35.1% |
| Sales & marketing | $432.7M | $438.0M | -1.2% | $361.8M | +19.6% |
| General & administrative | $115.1M | $106.3M | +8.3% | $82.1M | +40.2% |
| Total operating expenses | $1.04B | $986.7M | +5.4% | $808.4M | +28.7% |
| Operating income (loss) | -$386.7M | -$365.5M | -5.8% | -$275.5M | -40.4% |
| Operating margin | -39.2% | -38.8% | -0.4 pp | -35.6% | -3.6 pp |
| Net income (loss) | -$325.7M | -$327.9M | +0.7% | -$169.9M | -91.7% |
| Net margin | -33.0% | -34.8% | +1.8 pp | -21.9% | -11.1 pp |
| Diluted EPS | -$0.98 | -$0.98 | ±$0.00 | -$0.52 | -$0.46 |
Risks
In May 2024, a threat actor accessed a number of customers' Snowflake accounts due to customers' failure to implement MFA and network access policies, and additional similar attacks have occurred since. The company faces numerous lawsuits, regulatory investigations, and lawmaker inquiries, plus negative publicity and possible customer losses.
The company is investing significantly in AI Technology through internal development, acquisitions, and partnerships, but competitors may develop or adopt AI faster due to greater resources. Access to GPUs is in high demand, and customer use depends on evolving regulatory standards, internal compliance reviews, and acceptable contractual terms.
AWS, Azure, and GCP are both key public cloud providers and primary competitors, with a substantial majority of business running on AWS. Support for open data formats like Apache Iceberg reduces switching costs, and public cloud providers could bundle competing products, provide unfavorable pricing, or otherwise disadvantage Snowflake.
Adverse macroeconomic conditions may continue to cause customers to rationalize budgets, prioritize cash flow management, shorten committed contract durations, and optimize consumption, including by reducing storage through shorter data retention policies. Net revenue retention rate was 126% as of January 31, 2025 and 131% as of January 31, 2024.
Recent executive changes include Frank Slootman retiring as CEO in February 2024, Michael P. Scarpelli announcing his intention to retire as CFO in February 2025, and Christopher W. Degnan announcing his intention to retire as Chief Revenue Officer in March 2025. Loss of additional key leaders could harm morale, cause departures, and disrupt strategy execution.
Sales to large customers involve longer sales cycles, stronger customer leverage on pricing, more complex compliance and vendor diligence, and substantial upfront costs. The company has historically seen consumption growth from large enterprises take longer than from smaller enterprises.
Sales to federal, state, local, and foreign governments and heavily regulated organizations require certifications such as FedRAMP High and DOD Impact Level 4, face bid protests, audits, termination for convenience, and heightened compliance costs. The company plans to pursue additional authorizations, including national security clearances.
Product gross margin was 71% for fiscal 2025 compared to 74% for the prior fiscal year, and total gross margin for the current quarter was down 2.6 pp versus the prior-year quarter. The decline is primarily attributable to newly launched product capabilities and features that have not yet reached economies of scale, as well as higher third-party cloud infrastructure and GPU costs.
SaaS KPIs
All quarters →Net Revenue Retention Rate
Total Customers
Remaining Performance Obligations
Non-GAAP Operating Margin
Adjusted Free Cash Flow Margin
Free Cash Flow Margin
Adjusted Free Cash Flow
Product Revenue
Forbes Global 2000 Customers
Free Cash Flow
Non-GAAP Product Gross Margin
Non-GAAP Operating Income
Customers with Trailing 12-Month Product Revenue > $1 Million
Customers with Trailing 12-Month Product Revenue > $10 Million
Customers with Trailing 12-Month Product Revenue > $5 Million
Summary, forecast, risks and KPIs are extracted from Snowflake Inc.'s SEC filings for Q4 FY2025 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 6, 2026.