AI is front and center. We are continuing to advance our leadership in enterprise AI with Snowflake Intelligence, in public preview.
— Sridhar Ramaswamy
03Detailed Report
SNOW
Company SNOW
Period
Q2 2026
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 5, 2026
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Executive Summary
Snowflake delivered a robust QQ2 2026 with core analytics growth underpinning the quarterly results while AI-centric offerings accelerated the pace of value realization for customers. Product revenue reached $1.09 billion, up 32% year over year, signaling a continued rebound in demand for Snowflake’s data cloud platform as customers pursue modernization and AI-enabled workflows. Remaining performance obligations (RPO) remained strong at $6.9 billion, up 33% YoY, underscoring durable future revenue potential and healthy renewal activity (NRR of 125%). Management signaled an increase to full-year growth expectations and reinforced a multi-year AI adoption trajectory as a central driver of incremental spend. The company also highlighted meaningful platform innovations—Snowflake Intelligence, Cortex AI SQL, Gen 2 Warehouse, Snowflake Postgres, OpenFlow, and Spark integration via Snowpark Connect—alongside a broad ecosystem expansion (12,000+ partners; 40% data sharing; 1,200+ Iceberg accounts). On the financial front, non-GAAP operating margins improved to 11% despite continued investment, and management guided for Q3 product revenue of $1.125–$1.13 billion and FY2026 product revenue of $4.395 billion (27% YoY growth) with a 75% non-GAAP product gross margin, 9% non-GAAP operating margin, and 25% non-GAAP adjusted free cash flow margin. Snowflake also emphasized disciplined capital deployment, noting a CFO transition underway and no repurchases in Q2, with $1.5 billion remaining on the authorization. Taken together, Snowflake’s QQ2 performance reinforces a durable growth story supported by a large AI-inflection tailwind, expanding data-sharing network effects, and ongoing margin discipline as the company scales.
Key Performance Indicators
Revenue
Increasing
1.14B
QoQ: 9.87% | YoY: 31.78%
Gross Profit
Increasing
773.15M
67.53% margin
QoQ: 11.52% | YoY: 33.13%
Operating Income
Increasing
-336.42M
QoQ: 24.78% | YoY: 5.32%
Net Income
Increasing
-298.02M
QoQ: 30.71% | YoY: 5.96%
EPS
Increasing
-0.89
QoQ: 31.01% | YoY: 6.32%
Revenue Trend
Margin Analysis
Financial Highlights
Overview of QQ2 2026 financial and operational metrics (USD).
- Revenue: $1.1449B, up 32% YoY; QoQ growth ~9.9% (per disclosed QoQ figures).
- Gross Profit: $773.154M; gross margin 67.53% (GAAP).
- Product Revenue Growth (core focus): +32% YoY, contributing to overall topline strength.
- RPO: $6.9B, up 33% YoY, signaling durable revenue backlog.
- Net Revenue Retention (NRR): 125%, indicating strong account expansion within existing customers.
- Operating Margin (GAAP): -29.38%; Non-GAAP operating margin: 11% (company target: improving margins while investing for growth).
- EBITDA: -$240.957M; EBITDA margin negative at roughly -21% (as reported).
- Net Income: -$298.017M; Net income margin ~ -26.0%.
- EPS (GAAP and Diluted): -$0.89.
- Cash Flow: Operating cash flow $74.896M; Free cash flow $58.231M; Net change in cash -$358.57M for the period; Cash at end of period $1.960838B.
- Balance Sheet: Total assets $8.196B; total liabilities $5.750B; total stockholders’ equity $2.446B. Long-term debt $2.654B; total debt $2.692B; Net debt ~$0.812B.
- Customers: 654 customers with >$1M in trailing 12-month revenue; 15 Global 2000 customers added this quarter; 533 net new customers.
- AI / Platform Adoption: 40% of customers data-sharing; 6,100 accounts using Snowflake AI weekly; AI influences ~50% of new logos in Q2; 25% of deployed use cases powered by AI.
- Product Innovation: ~250 capabilities launched in H1; Gen 2 Warehouse delivering up to 2x faster performance; Snowflake Intelligence in public preview; Cortex AI SQL introduced; Snowflake Postgres; Snowflake OpenFlow; Snowpark Connect for Apache Spark in public preview.
- Guidance highlights: Q3 product revenue guidance of $1.125–$1.13B (25–26% YoY); FY2026 product revenue guidance raised to $4.395B (27% YoY); Non-GAAP product gross margin 75%; Non-GAAP operating margin 9%; Non-GAAP adjusted free cash flow margin 25%.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
1.14B
31.78%
9.87%
Gross Profit
773.15M
33.13%
11.52%
Operating Income
-336.42M
5.32%
24.78%
Net Income
-298.02M
5.96%
30.71%
EPS
-0.89
6.32%
31.01%
Key Financial Ratios
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