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    SNOW
    Earnings call· Oct 2025(Q3 FY26)

    Snowflake Inc. SNOW

    Dec 3, 2025 Source

    Executive summary

    Snowflake Q3 FY26 — Strong AI Adoption Drives Revenue Beat and Raised Full-Year Outlook

    Snowflake delivered a strong quarter, exceeding revenue expectations driven by robust AI adoption, product innovation, and effective go-to-market execution. The company raised its full-year product revenue guidance while reiterating margin targets, reflecting increased confidence in consumption trends and the impact of its AI Data Cloud offerings. Strategic partnerships and continued investment in core data capabilities are expanding Snowflake's market reach and solidifying its position as a foundational platform for enterprise AI.

    Highlights

    5

    • Product revenue grew 29% year-over-year to $1.16 billion.

    • Remaining performance obligations (RPO) accelerated to 37% year-over-year growth, totaling $7.88 billion.

    • Achieved $100 million AI revenue run rate one quarter earlier than anticipated.

    • Added a record 615 new customers this quarter.

    • Signed 4 9-figure deals, a record number for a single quarter.

    Concerns

    1

    • Hyperscaler outage impacted Q3 revenue by approximately $1 million to $2 million.

    Guidance & targets

    6
    CategoryTargetConfidence
    Product Revenue
    $1.195 billion - $1.2 billion
    high materiality
    High
    Non-GAAP Operating Margin
    7%
    medium materiality
    High
    Product Revenue
    approximately $4.446 billion
    high materiality
    High
    Non-GAAP Product Gross Margin
    75%
    medium materiality
    High
    Non-GAAP Operating Margin
    9%
    high materiality
    High
    Non-GAAP Adjusted Free Cash Flow Margin
    25%
    high materiality
    High

    Operational metrics

    15
    Product revenue growth
    29%YoY
    Q3 FY26

    Fueled by durable growth in core business and expansion into data engineering and AI workloads.

    Accounts using AI capabilities
    7,300
    weekly

    Reflects customer engagement with AI features.

    Snowflake Intelligence customers
    1,200
    Q3 FY26

    Harnessing next-generation agentic AI capabilities, fastest ramp in product adoption.

    AI in use cases deployed
    28%
    Q3 FY26

    Percentage of all use cases deployed during the quarter that incorporated AI.

    Total GA product capabilities
    370up 35% YoY
    YTD

    Reflects rapid pace of innovation, with AI being front and center.

    AWS Marketplace sales
    $2B
    CY25

    Surpassed in a single calendar year, recognized with 14 AWS Partner awards.

    Accenture professionals trained
    5,000
    future

    Accenture launched a Snowflake Business Group, committing to train professionals on Snowflake solutions.

    Non-GAAP product gross margin
    75.9%
    Q3 FY26

    Healthy margin performance.

    Non-GAAP operating margin
    11%expanded 450 bps YoY
    Q3 FY26

    Reflecting continued focus on driving greater efficiency.

    Non-GAAP adjusted free cash flow margin
    11%
    Q3 FY26

    Healthy margin performance.

    Shares repurchased
    1M
    Q3 FY26

    Executed during the quarter.

    Buyback authorization remaining
    $1.3B
    as of Q3 FY26

    Remaining on original authorization.

    Cash and investments balance
    $4.4B
    as of Q3 FY26

    Includes cash, cash equivalents, short-term and long-term investments.

    World Tour attendance increase
    40%
    YoY

    Record-breaking turnout for annual world tour.

    Build Developer Summit attendance increase
    43%
    YoY

    Underscoring growing excitement and engagement.

    Industry KPIs

    8
    MetricValueDetails
    Rpo current rpo$7.88BUSD
    Customer logo metrics615customers
    Large customer cohorts776customers
    Bookings tcv book to bill49-figure deals
    Genai ai book of business$100MUSD
    Consumption revenue growth29%%
    Net revenue dollar retention125%%
    Ai agentic channel product adoption1,200customers

    Orderbook & backlog

    1
    Remaining Performance Obligations (RPO)$7.88BQ3 FY26

    up 37% YoY

    Year-over-year growth accelerating.

    Product announcements

    4
    ProductTypeDetails
    Snowflake Intelligencelaunch
    Cortex AI for financial serviceslaunch
    Snowflake OpenFlowlaunch
    Postgres supportroadmap

    Deals & partnerships

    10
    WorkdayDeepen integration and enable secure data access.

    Announced new partnership to deepen integration and enable secure and seamless data access across systems.

    SplunkDeepen integration and enable secure data access.

    Announced new partnership to deepen integration and enable secure and seamless data access across systems.

    PalantirDeepen integration and enable secure data access.

    Announced new partnership to deepen integration and enable secure and seamless data access across systems.

    UIPathDeepen integration and enable secure data access.

    Announced new partnership to deepen integration and enable secure and seamless data access across systems.

    SAPUnite mission critical business data with the Snowflake AI Data Cloud.

    Landmark partnership to unite mission critical business data with the Snowflake AI Data Cloud, supporting customers like AstraZeneca.

    Google CloudMake the latest Gemini models available within Cortex AI and Snowflake Intelligence.

    Partnership to enhance access and customer choice for AI models.

    AnthropicBrings native model availability into Snowflake and introduces a new joint go-to-market motion.$200M

    Expanded partnership designed to accelerate enterprise AI adoption, includes a buy-side agreement from Snowflake.

    AccentureLaunched a Snowflake Business Group, committing to train over 5,000 professionals on Snowflake solutions.

    Aims to help joint customers realize AI value faster, already helping customers like Caterpillar.

    DatometryAcquired technology behind Datometry software migration solution.

    Will enable customers to move from legacy data warehouses to Snowflake at lower cost and with minimal disruption.

    Select StarAgreed to acquire Select Star to enhance Horizon catalog.

    Will deliver a more complete view of an enterprise's data estate, empowering agentic AI experiences.

    Risks & headwinds

    1
    Hyperscaler outageQ3 FY26

    $1M-$2M revenue impact

    Mitigation: Disaster recovery capability seamlessly transferred over 300 mission-critical workloads to backup systems, ensuring business continuity.

    What to watch in Q4 FY26

    5

    Consumption patterns post-holiday season

    January-February
    CurrentImproved outlook for FY26
    TargetVisibility for FY27 guidance

    Why it matters

    Consumption after the holiday season is the most important input for determining FY27 guidance and overall business trajectory.

    But what's really important is consumption after the holiday season, is the most important input for FY guidance for next year. And so we'll need to see the consumption behavior unfold in January, February, and that will give us better visibility to deliver that on our next earnings call.

    Q&A highlights

    8

    Why is the Q4 sequential guide strong despite a modest Q3 beat, and what types of customers and use cases are driving the $100M AI revenue run rate and Cortex AI adoption?

    Brian Robins clarified that the Q3 beat was as expected, with a minor hyperscaler outage impact, and the full-year guidance raise is the most meaningful signal of underlying business trends. Sridhar Ramaswamy explained that Snowflake Intelligence amplifies data value, enabling business users to query complex data easily, driving adoption across various industries and functions, and making the platform essential for customers' AI strategies.

    “I think it's really important with the consumption model that not to view quarterly beats as the best signal of the fundamentals within the business. The quarter, as you mentioned, we raised our fiscal year guidance by $51 million or $4.446 billion, and the FY guide is really the most meaningful signal.”

    asked by Sanjit Singh · answered by Brian Robins

    2 min read6 chapters

    Detailed Narrative

    01

    AI Data Cloud Adoption & Impact

    Snowflake is positioned at the center of the AI revolution, with its AI Data Cloud accelerating enterprise transformation. The company achieved a $100 million AI revenue run rate a quarter ahead of schedule, reflecting real-world enterprise usage of its AI capabilities. Over 7,300 accounts use Snowflake's AI features weekly, and 1,200 customers are leveraging Snowflake Intelligence for agentic AI, driving significant business impact and expanding the value delivered across the data lifecycle.

    02

    Product Innovation & Ecosystem Expansion

    Snowflake maintained a rapid pace of innovation, bringing 370 GA product capabilities year-to-date, a 35% increase over last year, with AI being central. Key innovations include Snowflake Intelligence for agentic AI, Cortex AI for financial services, and Snowflake OpenFlow for simplified data ingestion. Strategic acquisitions like Datometry and Select Star aim to enhance migrations and data estate visibility, further strengthening the platform's core data foundation.

    03

    Go-to-Market Execution & Customer Acquisition

    Q3 marked a strong quarter for go-to-market execution, with a record 615 new customer wins and 4 9-figure deals signed. AI influenced 50% of bookings and 28% of use cases deployed, demonstrating its role in driving new logo acquisition and deepening existing customer relationships. The company's consumption-based model and risk-free approach to AI adoption are key drivers of customer expansion and confidence.

    04

    Strategic Partnerships

    Snowflake expanded its ecosystem through new partnerships with Workday, Splunk, Palantir, UIPath, and SAP, aiming to deepen integrations and unlock new innovations. A landmark partnership with SAP unites mission-critical business data with the Snowflake AI Data Cloud. The company also announced an expanded partnership with Anthropic for native model availability and a joint go-to-market motion, alongside surpassing $2 billion in sales through AWS Marketplace in a single calendar year.

    05

    Financial Performance & Discipline

    Snowflake delivered strong financial results, with product revenue growing 29% year-over-year and RPO accelerating to 37% growth. The company continues to operate with financial discipline, achieving a non-GAAP operating margin of 11%, an expansion of over 450 basis points year-over-year. A share repurchase of $233 million was executed, with $1.3 billion remaining on the authorization, reflecting a commitment to efficient growth and shareholder returns.

    06

    Migrations & Data Strategy

    The company sees significant opportunity in legacy system migrations, with AI playing a role in accelerating these transitions. Acquisitions like Datometry's technology are aimed at simplifying and speeding up the migration process. Snowflake is also expanding its data platform capabilities, including the upcoming general availability of Postgres support, to address a broader range of data needs and further solidify its position as a comprehensive data and AI platform.

    AI-generated summary of the company’s earnings call. Not investment advice.