Snowflake Inc. Reports 35% Revenue Growth to $1.55 Billion in Latest Quarter

Snowflake Inc. reported significant financial performance in its latest quarterly filing, with total revenue reaching $1.55 billion for the three months ended July 31, 2026, marking a 35% increase from $1.14 billion in the same period last year. For the six months ending July 31, 2026, revenue totaled $2.94 billion, up 34% from $2.19 billion in the prior year. The company’s gross profit for the quarter was approximately $1.04 billion, resulting in a gross margin of 67%. Despite the revenue growth, Snowflake recorded a net loss of $191.7 million for the quarter, an improvement from a net loss of $297.9 million in the same period last year.

The company experienced notable changes in its operational metrics, with a customer count of 14,554 as of July 31, 2026, up from 13,245 at the end of January 2026. This growth included an increase in high-value customers, with 829 of the Forbes Global 2000 now using Snowflake's services, contributing approximately 41% of total revenue for the six months ended July 31, 2026. The net revenue retention rate stood at 126%, indicating strong customer engagement and expansion within existing accounts.

Strategically, Snowflake made significant acquisitions, including Natoma Labs, Inc. for $128.3 million and Observe, Inc. for $595.8 million, aimed at enhancing its AI capabilities and expanding its product offerings. The company also reported a remaining performance obligation (RPO) of approximately $9 billion, with expectations to recognize about 54% of this as revenue in the next 12 months, reflecting strong future revenue potential.

Operationally, Snowflake's total headcount increased to 1,227, up from 1,189 a year earlier, reflecting its ongoing investment in talent to support growth. The company’s cash and cash equivalents stood at approximately $1.71 billion as of July 31, 2026, down from $2.83 billion at the beginning of the fiscal year, primarily due to cash used in investing activities, including acquisitions and capital expenditures. Looking ahead, Snowflake anticipates continued growth driven by increased customer consumption and expansion of its AI Data Cloud platform, while also managing macroeconomic challenges that may impact customer spending.