Snowflake Q3 FY2026 earnings: revenue up 29% as AI products gain traction
Snowflake's fiscal Q3 2026 revenue rose 29% year-over-year to $1.21 billion, with the company posting a GAAP net loss but improved profitability on an adjusted basis.
| Q3 2026 | Reported |
|---|---|
| EPS | -$0.87 |
| Revenue | $1.21B |
Figures as reported by the company to the SEC for the quarter ended October 31, 2025. Analyst estimates are not part of a filing, so no comparison to expectations is shown.
Key takeaways
- Total revenue grew 29% from a year earlier to $1.21 billion, driven mainly by product (subscription) revenue of about $1.16 billion, which also grew 29%.
- The company reported a GAAP net loss of $0.87 per share, which includes non-cash costs like stock-based compensation. On an adjusted (non-GAAP) basis, which strips out those items, Snowflake said it earned $0.35 per share and expanded its adjusted operating margin to 11%, up more than four percentage points from a year ago.
- Net revenue retention held at 125%, meaning existing customers spent about a quarter more with Snowflake than they did a year earlier, on average — a sign that current customers are expanding usage even as the company adds new ones (615 net new customers in the quarter).
- Remaining performance obligations, a measure of contracted future revenue not yet billed, reached $7.88 billion, up 37% year-over-year, pointing to a growing backlog of committed customer spending.
- Management said Snowflake’s AI-related products crossed a $100 million annualized revenue run rate a quarter earlier than the company had expected, and it signed a record four contracts worth nine figures each during the quarter.
- The trailing-twelve-month figures show the broader financial picture: a gross margin of about 67% (Snowflake keeps roughly two-thirds of each revenue dollar after direct costs of running its cloud service), alongside a net margin of about -24% and return on equity of about -57%, reflecting that the company is still spending heavily on growth and has not yet reached overall GAAP profitability.
- For the fourth quarter, Snowflake guided to product revenue of $1.195-$1.2 billion, implying about 27% year-over-year growth, and raised its full-year revenue outlook to roughly $4.45 billion, about 28% higher than the prior fiscal year.
- Coverage following the release noted that despite the growth and raised guidance, Snowflake shares fell, which some reports attributed to investor focus on the pace of margin improvement and competitive dynamics in the cloud data and AI market.
Q3 2026 in context
| Metric | Oct 2025 | Oct 2024 | Change |
|---|---|---|---|
| Revenue | $1.2B | $942M | +28.7% |
| Net income | -$294M | -$324M | +9.4% |
| Free cash flow | $114M | $88M | +28.7% |
| Diluted EPS | -$0.87 | -$0.98 | +11.2% |
| Gross margin | 67.8% | 65.9% | +1.8 pts |
| Operating margin | -27.2% | -38.8% | +11.6 pts |
| Net margin | -24.2% | -34.4% | +10.2 pts |
Figures for the quarter ended Oct 2025 and the quarter ended Oct 2024, as reported to the SEC.
How the stock took it
Snowflake Inc closed at $234.77 on Dec 4, 2025, the last session before the report, and at $225.31 on Dec 8, 2025, the first session after it — -4.0% across the report.
| Earlier report | Close before | Close after | Change |
|---|---|---|---|
| Sep 5, 2025 | $221.90 | $226.52 | +2.1% |
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 · Nasdaq