Snowflake Q2 2026 Earnings: Revenue Up 32%, Guidance Raised on AI Demand
Snowflake's fiscal Q2 2026 revenue grew 32% year-over-year to $1.14 billion, and the company raised its full-year outlook, citing rising AI-driven usage.
| Q2 2026 | Reported |
|---|---|
| EPS | -$0.89 |
| Revenue | $1.14B |
Figures as reported by the company to the SEC for the quarter ended July 31, 2025. Analyst estimates are not part of a filing, so no comparison to expectations is shown.
Key takeaways
- Total revenue for the quarter came in at $1.14 billion, up 32% from a year earlier, with the core product (cloud usage) revenue also growing 32% year-over-year to $1.09 billion.
- Existing customers are spending significantly more over time: the net revenue retention rate was 125%, meaning customers who were on the platform a year ago are now paying about a quarter more on average.
- The number of large customers keeps climbing — 654 customers now each generate more than $1 million in trailing 12-month product revenue, up 27% from a year ago, and the company added 533 net new customers in the quarter.
- Remaining performance obligations, a measure of revenue already contracted but not yet delivered, rose 33% year-over-year to $6.9 billion, pointing to a healthy pipeline of future business.
- Management raised its full-year product revenue outlook to $4.395 billion, implying about 27% growth for the fiscal year, and pointed to a non-GAAP operating margin target of roughly 9% for the year.
- Executives tied the raised outlook to accelerating AI adoption, saying AI-related capabilities influenced nearly half of new customer wins and now power about a quarter of all workloads running on the platform.
- Azure was highlighted as Snowflake’s fastest-growing cloud partnership, with usage on Microsoft’s cloud up 40% year-over-year, underscoring the company’s multi-cloud approach.
- Trailing-twelve-month figures show a gross margin near 67%, meaning the underlying cloud-computing business keeps most of each revenue dollar after direct costs, but heavy spending on R&D, sales and stock-based compensation left operating and net margins negative over that period, consistent with the company’s GAAP net loss for the quarter.
Q2 2026 in context
| Metric | Jul 2025 | Jul 2024 | Change |
|---|---|---|---|
| Revenue | $1.1B | $869M | +31.8% |
| Net income | -$298M | -$317M | +6.0% |
| Free cash flow | $58M | $65M | -10.2% |
| Diluted EPS | -$0.89 | -$0.95 | +6.3% |
| Gross margin | 67.5% | 66.8% | +0.7 pts |
| Operating margin | -29.7% | -40.9% | +11.2 pts |
| Net margin | -26.0% | -36.5% | +10.4 pts |
Figures for the quarter ended Jul 2025 and the quarter ended Jul 2024, as reported to the SEC.
How the stock took it
Snowflake Inc closed at $221.90 on Sep 4, 2025, the last session before the report, and at $226.52 on Sep 8, 2025, the first session after it — +2.1% across the report.
Closes from the market's daily record. Each figure spans the report date — from the last session that closed before it to the first that closed after — because a company may report before the open or after the close.
Sources: company report · earnings call