In Q2 2025, Snowflake Inc (SNOW) delivered impressive financial results, reporting a revenue of $868.8 million, marking a robust growth of 30% year-over-year. The company's healthy performance was further highlighted by the increase in Remaining Performance Obligations (RPO), reaching $5.2 billion, which grew by 48% year-over-year. This strong quarter prompted management to raise product revenue guidance for the fiscal year, reflecting confidence in continued demand and innovation. CEO Sridhar Ramaswamy noted that the company has accelerated its innovation pipeline, successfully launching numerous products, emphasising AI capabilities as a critical growth driver moving forward.
Despite these positive indicators, the company reported a net loss of $316.9 million and an operating income margin of -40.9%, prompting concerns over profitability amidst aggressive spending on Research & Development (R&D) and marketing. The continued investment in AI and the introduction of new services aim to enhance customer engagement and drive future revenue growth, with a targeted non-GAAP operating margin of 3% for Q3 2025. Investors are advised to closely monitor Snowflake's spending strategies, competitive positioning, and product adoption rates as the company navigates expansion in a challenging economic environment.