Snowflake Inc. Reports 33% Revenue Growth to $1.39 Billion, Net Loss Narrows

Snowflake Inc. reported significant financial performance for the three months ending April 30, 2026, with total revenue reaching $1.39 billion, a 33% increase from $1.04 billion in the same period last year. The company's product revenue, which constitutes the majority of its income, rose by 34% to $1.33 billion, driven by increased consumption from existing customers, as evidenced by a net revenue retention rate of 126%. Despite the revenue growth, Snowflake recorded a net loss of $295.6 million, an improvement from a loss of $430.1 million in the prior year, reflecting a narrowing operating loss of $326.2 million compared to $447.3 million in the previous year.

The company’s operational metrics showed a rise in customer engagement, with the total customer count increasing to 13,912 from 13,296. Notably, the number of customers generating over $1 million in product revenue in the trailing twelve months grew to 779, up from 604. This growth in customer base and revenue was complemented by a strategic acquisition of Observe, Inc., an AI-powered observability platform, for approximately $595.8 million, which is expected to enhance Snowflake's capabilities in AI and machine learning.

In terms of operational efficiency, Snowflake's cost of revenue increased to $464.5 million, up 33% from the previous year, primarily due to higher third-party cloud infrastructure expenses associated with increased customer consumption. The gross profit margin remained stable at 67%, indicating effective management of costs relative to revenue growth. The company also reported a decrease in general and administrative expenses, largely due to a significant reduction in asset impairment charges compared to the previous year.

Looking ahead, Snowflake anticipates continued growth driven by its expanding customer base and increased adoption of its platform, particularly in AI and machine learning applications. The company has a remaining performance obligation of approximately $9.2 billion, with expectations that about 50% will be recognized as revenue in the next twelve months. However, management acknowledged potential challenges from macroeconomic conditions that could impact customer spending and consumption patterns. Snowflake remains committed to investing in its platform and expanding its market presence, with a focus on long-term profitability and operational efficiency.