Snowflake (SNOW) Q4 2026 Earnings Call Transcript

The Motley Fool

by newsfeedback@fool.com (Motley Fool Transcribing)

February 25, 2026

AI-Generated Deep Dive Summary

Snowflake Inc. (SNOW) delivered strong Q4 2026 earnings, showcasing robust revenue growth and customer expansion. The company reported $1.23 billion in product revenue, a 30% year-over-year increase, driven by both core business and AI workloads. Key metrics such as Remaining Performance Obligations ($9.77 billion, up 42%) and Net Revenue Retention Rate (125%, unchanged from the prior quarter) highlight sustained customer satisfaction and expansion. Non-GAAP operating margins improved to 10.5% for FY 2026, reflecting cost management and operational efficiency. Snowflake's AI product adoption continued to accelerate, with over 9,100 accounts using AI offerings and Snowflake Intelligence deployed in more than 2,500 accounts—nearly doubling sequentially. The company also announced the Observe acquisition for $600 million, expected to contribute 1% of FY 2027 product revenue growth. This strategic move underscores Snowflake's focus on enhancing its AI capabilities and expanding its cloud data platform. In terms of financial performance, the company achieved a non-GAAP product gross margin of 75.8% for FY 2026 and adjusted free cash flow margin of 25.5%. Share repurchase activity totaled $150 million in Q4, reducing shares by 668,000 at an average price of $225. With $4.8 billion in cash and investments, Snowflake maintained strong liquidity for future growth initiatives. Looking ahead, Snowflake provided FY 2027 guidance with projected product revenue of $5.66 billion (27% year-over-year growth) and a targeted non-GAAP operating margin of 12.5%. The company also highlighted the importance of partnerships with industry leaders like SAP, Anthropic, OpenAI, and Google Cloud to offer native access to leading AI models within its platform. Snowflake's Q4 earnings reflect its strategic focus on innovation, customer expansion, and operational efficiency. CEO Sridhar Ramaswamy emphasized the transformation from a data governance platform to one where customers build

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Originally published on The Motley Fool on 2/25/2026