# Snowflake (SNOW) Q2 2026 Financial Results Summary
On August 27, 2025, Snowflake (NYSE: SNOW) announced its financial results for the second quarter of fiscal 2026, which ended on July 31, 2025. The following is a summary of the key financial and business metrics reported for the quarter.
### Financial Highlights
– **Total Revenue**: $1.1 billion, representing **32% year-over-year growth**.
– **Product Revenue**: $1.09 billion, which is up **32% year-over-year**.
– **Product Gross Profit**:
– GAAP: $788.2 million with a gross margin of **72%**.
– Non-GAAP: $833.6 million with a gross margin of **76%**.
– **Operating Income (Loss)**:
– GAAP: -$340.3 million, representing a **30% decrease** from the prior year.
– Non-GAAP: $127.6 million with an operating margin of **11%**.
– **Net Cash Provided by Operating Activities**: $74.9 million, reflecting **7% year-over-year growth**.
– **Free Cash Flow**:
– Non-GAAP: $58.2 million, a **5% increase** year-over-year.
– Adjusted Free Cash Flow: $67.8 million, which is a **6% increase** from the previous year.
– **Net Loss**:
– GAAP: -$297.9 million or -$0.89 per share attributable to Snowflake Inc. common stockholders.
– Year-over-year decrease in net loss by **26%**.
### Key Business Metrics
– **Net Revenue Retention Rate**: 125%.
– **Number of Customers**:
– 654 customers had trailing 12-month product revenue greater than $1 million, representing **30% year-over-year growth**.
– 751 customers are part of the Forbes Global 2000, which is a **5% increase** compared to last year.
– **Remaining Performance Obligations (RPO)**: $6.9 billion, indicating **33% year-over-year growth**.
### Stock Repurchase Program
– Although the guidance information suggests potential for repurchases under their stock repurchase program, specific details regarding any quarterly share repurchase or dividend declaration were not provided in the report.
### Financial Outlook for Q3 and Full Year
– **Guidance for Q3 2026**:
– Expected product revenue between $1,125 million and $1,130 million, translating to growth of **25% to 26%** year-over-year.
– Anticipated operating income margin of **9%** (GAAP).
– **Full-Year Fiscal 2026 Guidance**:
– Projected product revenue is set at **$4.395 billion**, reflecting a **27% increase**.
– Anticipated product gross margin at **75%** and operating income margin at **9%**.
### Additional Information
– Snowflake has over 12,000 customers using its AI Data Cloud platform to build, utilize, and share data, applications, and AI capabilities.
– The company continues to focus on leveraging AI to improve business opportunities for its clients.
This summary reflects the company’s strong performance during the second quarter and its optimistic outlook moving forward.
| Three Months Ended July 31, | 2025 | 2024 | Six Months Ended July 31, | 2025 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue | $1,144,969 | $868,823 | $2,187,043 | $1,697,532 | ||
| Cost of revenue | 371,815 | 288,078 | 720,601 | 560,595 | ||
| Gross profit | 773,154 | 580,745 | 1,466,442 | 1,136,937 | ||
| Operating expenses: | ||||||
| Sales and marketing | 501,957 | 400,625 | 960,511 | 801,447 | ||
| Research and development | 492,003 | 437,660 | 964,407 | 848,454 | ||
| General and administrative | 119,470 | 97,763 | 329,057 | 190,911 | ||
| Total operating expenses | 1,113,430 | 936,048 | 2,253,975 | 1,840,812 | ||
| Operating loss | -340,276 | -355,303 | -787,533 | -703,875 | ||
| Interest income | 49,467 | 49,265 | 102,630 | 104,044 | ||
| Interest expense | -2,074 | — | -4,145 | — | ||
| Other expense, net | -4,985 | -7,946 | -33,043 | -29,248 | ||
| Loss before income taxes | -297,868 | -313,984 | -722,091 | -629,079 | ||
| Provision for income taxes | 62 | 3,786 | 5,791 | 6,507 | ||
| Net loss | -297,930 | -317,770 | -727,882 | -635,586 | ||
| Less: net income (loss) attributable to | 87 | -871 | 227 | -1,699 | ||
| noncontrolling interest | ||||||
| Net loss attributable to Snowflake Inc. | $-298,017 | $-316,899 | $-728,109 | $-633,887 | ||
| Net loss per share attributable to | ||||||
| Snowflake Inc. common stockholders—basic | $-0.89 | $-0.95 | $-2.18 | $-1.90 | ||
| and diluted | ||||||
| Weighted-average shares used in | ||||||
| computing net loss per share | 335,215 | 334,071 | 333,957 | 333,830 | ||
| attributable to Snowflake Inc. common | ||||||
| stockholders—basic and diluted |
| July 31, 2025 | January 31, 2025 | |
|---|---|---|
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $1,880,720 | $2,628,798 |
| Short-term investments | 1,705,988 | 2,008,873 |
| Accounts receivable, net | 646,682 | 922,805 |
| Deferred commissions, current | 129,873 | 97,662 |
| Prepaid expenses and other current | 232,864 | 211,234 |
| assets | ||
| Total current assets | 4,596,127 | 5,869,372 |
| Long-term investments | 1,012,904 | 656,476 |
| Property and equipment, net | 283,051 | 296,393 |
| Operating lease right-of-use assets | 262,419 | 359,439 |
| Goodwill | 1,174,978 | 1,056,559 |
| Intangible assets, net | 285,448 | 278,028 |
| Deferred commissions, non-current | 187,206 | 183,967 |
| Other assets | 394,594 | 333,704 |
| Total assets | $8,196,727 | $9,033,938 |
| Liabilities and Stockholders’ Equity | ||
| Current liabilities: | ||
| Accounts payable | $166,786 | $169,767 |
| Accrued expenses and other current | 622,800 | 515,454 |
| liabilities | ||
| Operating lease liabilities, current | 38,109 | 35,923 |
| Deferred revenue, current | 2,268,387 | 2,580,039 |
| Total current liabilities | 3,096,082 | 3,301,183 |
| Convertible senior notes, net | 2,275,674 | 2,271,529 |
| Operating lease liabilities, non-current | 378,546 | 377,818 |
| Deferred revenue, non-current | 11,540 | 15,501 |
| Other liabilities | 55,296 | 61,264 |
| Snowflake Inc. stockholders’ equity | 2,372,648 | 2,999,929 |
| Noncontrolling interest | 6,941 | 6,714 |
| Total liabilities and stockholders’ | $8,196,727 | $9,033,938 |
| equity |
