Summary
Snowflake closed fiscal 2026 with a fourth quarter that showed strong top-line momentum but continued GAAP losses. Revenue for the quarter ended January 31, 2026 was $1.28 billion, up 30.1% from $986.77 million in the prior-year quarter. Gross profit rose 31.2% to $857.66 million. Gross margin was 66.8%, up 0.6 percentage points. The company still posted an operating loss of $318.16 million, narrower than the $386.68 million loss a year earlier. Net loss was $309.55 million, an improvement from the $327.47 million net loss in the prior-year quarter. Operating margin was -24.8%, up 14.4 percentage points from -39.2%.
For the full fiscal year, revenue reached $4.68 billion, up 29.2% from $3.63 billion. Gross profit increased 30.5% to $3.15 billion, and gross margin improved to 67.2% from 66.5%. The full-year operating loss narrowed to $1.44 billion from $1.46 billion. Net loss attributable to Snowflake widened to $1.33 billion from $1.29 billion. Diluted EPS was -$3.95, down from -$3.86. Operating margin for the full year was -30.6%, up 9.5 percentage points. The company generated $1.22 billion in operating cash flow for the year, up 27.3%, and spent $101.63 million on capital expenditures, up 119.6%.
Cash generation was particularly strong in the fourth quarter. Operating cash flow was $781.15 million, up 80.5% from $432.72 million a year earlier. Capital expenditures were $16.07 million, up 42.5% from $11.28 million. Deferred revenue, current portion, stood at $3.35 billion, up 29.7%. Remaining performance obligations were $9.80 billion, up 42.0%. Those figures point to a healthy backlog and advance billings, though the company reminds investors that RPO does not predict the timing of consumption. As of January 31, 2026, Snowflake had 13,328 total customers, up from 10,996 a year earlier. Management said it expects about 46% of RPO to be recognized as revenue in the 12 months ending January 31, 2027, and the weighted-average remaining life of capacity contracts was 2.7 years.
Operational metrics were also robust. Net revenue retention was 125%, compared with 126% a year earlier. Snowflake had 733 customers with trailing 12-month product revenue greater than $1 million, up 27%. It added 740 net new customers, up 40%. As of January 31, 2026, it served 790 Forbes Global 2000 customers, up 5%. Forbes Global 2000 customers contributed approximately 43% of revenue for fiscal 2026. The company said more than 9,100 accounts used Snowflake AI features, and almost 2,500 accounts used Snowflake Intelligence within three months. It introduced more than 430 new capabilities in fiscal 2026 and expanded partnerships with Anthropic, Google Cloud, and OpenAI. Acquisitions included Observe and TensorStax.
Guidance for the first quarter of fiscal 2027 calls for product revenue of $1,262 million to $1,267 million, up 27%. For the full fiscal year 2027, Snowflake guided product revenue to $5,660 million, up 27%. Management also guided non-GAAP operating income margin of 9.0% for the first quarter and 12.5% for the full year, with non-GAAP adjusted free cash flow margin of 23.0% for the full year. The outlook assumes continued adoption of AI workloads, but it does not remove the main risks. Macroeconomic conditions, customer budget rationalization, consumption optimization, shorter contract durations, competition, cybersecurity threats, and regulatory demands could all pressure results. Other risks include extended federal government shutdowns, higher interest rates, and foreign currency volatility.
The quarter shows a company scaling revenue and cash flow while still working toward GAAP profitability. Revenue growth was 30.1% in the quarter and 29.2% for the full year. Large-customer counts are rising, and the RPO balance is sizable. The full-year net loss and negative diluted EPS show that stock-based compensation and other costs remain significant. Management's fiscal 2027 guidance implies steady growth with modest non-GAAP operating margins, leaving execution on AI adoption, consumption trends, and cost discipline as the key items to watch.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2026 | Q3 FY2026 | QoQ | Q4 FY2025 | YoY |
|---|---|---|---|---|---|
| Revenue | $1.28B | $1.21B | +5.9% | $986.8M | +30.1% |
| Gross profit | $857.7M | $822.0M | +4.3% | $653.6M | +31.2% |
| Gross margin | 66.8% | 67.8% | -1.0 pp | 66.2% | +0.6 pp |
| Research & development | $511.0M | $494.0M | +3.4% | $492.5M | +3.8% |
| Sales & marketing | $551.3M | $550.4M | +0.2% | $432.7M | +27.4% |
| General & administrative | $113.5M | $107.1M | +6.0% | $115.1M | -1.4% |
| Total operating expenses | $1.18B | $1.15B | +2.1% | $1.04B | +13.0% |
| Operating income (loss) | -$318.2M | -$329.5M | +3.4% | -$386.7M | +17.7% |
| Operating margin | -24.8% | -27.2% | +2.4 pp | -39.2% | +14.4 pp |
| Net income (loss) | -$309.6M | -$291.6M | -6.2% | -$325.7M | +5.0% |
| Net margin | -24.1% | -24.0% | -0.1 pp | -33.0% | +8.9 pp |
| Diluted EPS | -$0.92 | -$0.87 | -$0.05 | -$0.98 | +$0.06 |
Risks
Adverse macroeconomic conditions have caused customers to rationalize budgets, prioritize cash flow management, shorten contract durations, and optimize consumption, including reducing storage through shorter data retention policies. The filing states revenue growth rate has slowed in recent periods and net revenue retention rate was 125% as of January 31, 2026, down from 126% as of January 31, 2025.
Because revenue is recognized on consumption rather than ratably over subscription terms, Snowflake lacks visibility into the timing of revenue recognition and customers can consume at lower levels than expected. The 10-K states actual results may differ from forecasts and results in a given period should not be relied upon as indicative of future performance.
Enterprise adoption of AI may transform the competitive landscape, with frontier AI model providers potentially vertically integrating into data storage and management layers and companies using AI to develop their own software. Public cloud providers AWS, Azure, and GCP are both primary competitors and infrastructure providers for a substantial majority of Snowflake's business.
Snowflake is investing significantly in AI Technology and relies on third-party vendors for large language models; success depends on access to GPUs and recruiting and retaining AI-skilled personnel, both currently in high demand. Customers' use of AI features also depends on their ability to meet evolving regulatory standards and successfully complete internal compliance reviews.
A substantial majority of Snowflake's business runs on the AWS public cloud, and AWS, Azure, and GCP are also primary competitors that could bundle competing products, provide unfavorable pricing, or treat Snowflake differently. If minimum commitments under third-party cloud infrastructure agreements are not met, Snowflake may be required to pay the difference.
In May 2024, cybersecurity threat actors accessed a number of customers' Snowflake accounts due to customer failures to implement MFA and network access policies, leading to numerous lawsuits, regulatory investigations, and lawmaker inquiries even though Snowflake found no vulnerability or breach of its platform. Additional cyberattacks on customers' Snowflake accounts using similar methods have since been identified.
Sales to U.S. federal, state, local, and foreign governments and heavily regulated organizations require certifications such as FedRAMP High and Department of War Impact Level 4 and 5, and create bid protest, budget cycle, shutdown, and compliance risks. Public sector contracts may be terminated for convenience or default, and noncompliance can lead to civil and criminal penalties, suspension, or debarment.
Sales to large customers involve longer sales cycles, stronger customer leverage in negotiating pricing, more extensive compliance and vendor diligence, and higher upfront sales costs. The 10-K also states consumption growth from large enterprises has historically taken longer than from smaller enterprises.
Snowflake is named in a securities class action lawsuit, a class action alleging copyright infringement in connection with large language model training, and numerous class action lawsuits related to cybersecurity matters. Litigation has resulted and could continue to result in substantial costs and diversion of management attention.
SaaS KPIs
All quarters →Net Revenue Retention Rate
Total Customers
Remaining Performance Obligations
Forbes Global 2000 Customers
Summary, forecast, risks and KPIs are extracted from Snowflake Inc.'s SEC filings for Q4 FY2026 (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.