Snowflake Inc. (SNOW) Announced Q4 2026 Earnings on February 25, 2026, Reporting "Product revenue in Q4 grew 30% year-over-year to reach $1.23 billion."

Snowflake reported fourth quarter fiscal 2026 product revenue of $1.23 billion, representing 30% year-over-year growth. Remaining performance obligations reached $9.77 billion, with year-over-year growth accelerating to 42%. The company also reported a net revenue retention rate of 125%. For the full fiscal year 2026, Snowflake achieved a non-GAAP product gross margin of 75.8%, a non-GAAP operating margin of 10.5%, and a non-GAAP adjusted free cash flow margin of 25.5%. Additionally, management used $150 million to repurchase approximately 668,000 shares during the fourth quarter.

Management highlighted strong momentum in their artificial intelligence initiatives, noting that Snowflake Intelligence has scaled to over 2,500 accounts and Cortex Code is helping 4,400 customers build AI-powered applications. The company signed the largest deal in Snowflake's history, representing "greater than $400 million in total contract value," and also secured seven 9-figure contracts in the quarter. In corporate development, Snowflake closed the acquisition of the observability platform Observe for approximately $600 million in a combination of cash and stock. Furthermore, management announced a $200 million expanded partnership with OpenAI and highlighted partnerships with SAP, Entropic, and Google Cloud to expand native model choice for customers.

For the first quarter of fiscal 2027, Snowflake expects product revenue between $1.26 billion and $1.26 billion, representing 27% year-over-year growth, alongside a non-GAAP operating margin of 9%. For the full fiscal year 2027, guidance includes approximately $5.66 billion in product revenue, a non-GAAP product gross margin of 75%, and a non-GAAP operating margin of 12.5%. The company also guided to a non-GAAP adjusted free cash flow margin of 23% for the full year, which includes an approximate 150 basis point headwind related to the Observe acquisition.