Snowflake Inc. reported significant financial results for the third quarter of fiscal 2026, ending October 31, 2025, with total revenue reaching $1.21 billion, a 29% increase from $942.1 million in the same period last year. The company's product revenue, which constitutes the majority of its income, also grew by 29% to $1.16 billion, driven by increased consumption of its platform by existing customers. Despite the revenue growth, Snowflake recorded a net loss of $293.96 million, slightly improved from a loss of $324.28 million in the prior year, reflecting ongoing investments in growth and operational expansion.
In terms of operational metrics, Snowflake's customer base expanded to 12,621, up from 11,023 at the end of January 2025. The company reported a net revenue retention rate of 125%, indicating strong customer engagement and increased spending among existing clients. Notably, the number of customers generating over $1 million in product revenue over the trailing twelve months rose to 688, compared to 534 a year earlier. This growth underscores the company's strategy of deepening relationships with large enterprises, which now account for a significant portion of its revenue.
Snowflake's investments in research and development and sales and marketing continued to rise, with operating expenses totaling $1.15 billion for the quarter, up from $986.7 million a year ago. The increase was primarily attributed to higher personnel costs and stock-based compensation, reflecting the company's commitment to scaling its workforce and enhancing its product offerings. The cost of revenue also increased, driven by higher third-party cloud infrastructure expenses, which are essential for supporting customer usage of the platform.
The company maintained a strong liquidity position, with cash, cash equivalents, and investments totaling approximately $4.4 billion as of October 31, 2025. Snowflake's remaining performance obligations (RPO) stood at $7.9 billion, indicating a solid pipeline of future revenue. The company expects to recognize about 48% of this RPO as revenue in the next twelve months, based on historical consumption patterns. Looking ahead, Snowflake remains focused on expanding its AI Data Cloud offerings and enhancing customer engagement, while navigating macroeconomic challenges that may impact customer spending and consumption patterns.
About Snowflake Inc.
Snowflake Inc. is a cloud computing company specializing in data management and analytics through its innovative Data Cloud platform. It enables organizations to consolidate and share data securely, addressing the challenges of data silos. With a focus on AI and machine learning, Snowflake targets businesses of all sizes, including 691 of the Forbes Global 2000. The company is expanding its offerings with industry-specific solutions and a growing partner network to enhance collaboration and data monetization.
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