Financial Data and Key Metrics Changes - Product revenue for Q2 was $1,090 million, up 32% year over year, demonstrating an acceleration in growth from the previous quarter [10] - Remaining performance obligations totaled $6,900 million with year over year growth of 33% [10] - Net revenue retention rate was a healthy 125% [10] - Non-GAAP operating margin increased to 11%, reflecting a focus on efficiency and operational growth [10][26] - Non-GAAP product gross margin was 76.4% [26] - The company ended the quarter with $4,600 million in cash, cash equivalents, and investments [28] Business Line Data and Key Metrics Changes - New features across all four product categories (analytics, data engineering, AI, and applications and collaboration) outperformed expectations [25] - In Q2, 50 customers crossed the $1,000,000 in trailing twelve-month revenue, totaling 654 such customers [25] - The company added 533 new customers, including 15 Global 2000 companies this quarter [22] Market Data and Key Metrics Changes - Azure was the fastest-growing cloud platform for the company, growing 40% year over year [41] - The company is seeing strong adoption of open data formats, with over 1,200 accounts using Apache Iceberg [19] - AI is influencing nearly 50% of new logos won in Q2, with 25% of all deployed use cases involving AI [19] Company Strategy and Development Direction - The company remains focused on empowering enterprises through data and AI, emphasizing product innovation and operational efficiency [9] - The introduction of Snowflake Intelligence and Cortex AI SQL aims to enhance AI capabilities and streamline data management [12][14] - The company is strategically investing in partnerships and expanding its go-to-market engine to capture growth opportunities [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the durability of growth driven by data modernization and AI transformation [34] - The company anticipates continued strong demand for its AI capabilities, with budgets being allocated for AI projects [56] - Management highlighted the importance of ease of use and customer experience in driving adoption and value realization [11][113] Other Important Information - The company is making progress on its CFO transition and will announce details once available [30] - The company did not utilize its repurchase program in Q2, with $1,500 million remaining on its authorization [28] Q&A Session All Questions and Answers Question: Insights on data infrastructure modernization among Fortune 500 companies - Management indicated that data modernization is just the beginning, with a focus on making data AI-ready to drive value realization [34] Question: Contribution from European market - Management noted that Europe is still developing but contributing, with groundwork being laid for new customer acquisition [38] Question: Performance on Azure - Azure was highlighted as the fastest-growing cloud, with better alignment between the company's field and Microsoft contributing to growth [41] Question: Drivers of upside in Q2 - Management attributed the upside to strong performance in core business and new product adoption, with large customers migrating new workloads [76] Question: Competitive environment and customer preferences - Management emphasized Snowflake's strengths in AI data platform capabilities and the importance of product quality and governance in customer decisions [80] Question: Professional services growth - Management clarified that the growth in professional services was driven by milestones from a large customer, with most services being performed by partners [85] Question: Expansion rate and consumption trends - Management indicated that the uptick in expansion rate was driven by large customers migrating new workloads, with optimizations being a normal part of the process [88] Question: Update on Crunchy integration - Management reported strong progress on the integration of Crunchy into Snowflake Postgres, with significant customer interest [104] Question: AI adoption and monetization strategy - Management highlighted a deliberate strategy for AI adoption, focusing on ease of use and broad adoption without requiring a massive sales effort [113]

Financial Data and Key Metrics Changes - Product revenue for Q2 was $1,090 million, up 32% year over year, indicating an acceleration in growth from the previous quarter [7] - Remaining performance obligations totaled $6,900 million with year-over-year growth of 33% [7] - Net revenue retention rate was 125%, reflecting strong customer loyalty [7] - Non-GAAP operating margin increased to 11%, showcasing a focus on efficiency and operational growth [7][22] - The company ended the quarter with $4,600 million in cash and investments [24] Business Line Data and Key Metrics Changes - New customer additions increased by 21% year over year, with 50 customers crossing the $1 million in trailing twelve-month revenue, totaling 654 such customers [21][22] - Non-GAAP product gross margin was 76.4% [22] - Non-GAAP adjusted free cash flow margin was 6% [23] Market Data and Key Metrics Changes - Azure was the fastest-growing cloud platform for the company, growing 40% year over year [36] - The company added 533 customers in the quarter, including 15 Global 2000 companies [18] Company Strategy and Development Direction - The company is focused on empowering enterprises through data and AI, with a commitment to product innovation and operational efficiency [6] - The introduction of Snowflake Intelligence and other AI-driven products is central to the company's strategy, aiming to enhance customer experience and operational efficiency [10][11] - The company is expanding its reach into the $17 billion data integration market with Snowflake OpenFlow [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing data modernization efforts among Fortune 500 and Global 2000 companies, viewing it as a long-term growth opportunity [29] - The company anticipates continued strong demand for AI capabilities, with nearly 50% of new logos won in Q2 influenced by AI [15] - Management expects product revenue for Q3 to be between $1,125 million and $1,130 million, representing 25% to 26% year-over-year growth [25] Other Important Information - The company launched approximately 250 new capabilities in the first half of the year, demonstrating a strong pace of innovation [13] - The company is making progress on its CFO transition and will announce details once available [26] Q&A Session Summary Question: Insights on data infrastructure modernization among Fortune 500 companies - Management believes data modernization is just the beginning, driven by the need for scalable systems and AI readiness [29] Question: Contribution from European market - Europe is still developing but contributing, with groundwork being laid for new customer acquisition [33] Question: Performance on Azure - Azure is the fastest-growing cloud platform for the company, with significant alignment and collaboration with Microsoft [36] Question: Drivers of upside in Q2 - The upside was driven by large customer migrations and new product contributions, with core business performance being strong [71] Question: Competitive environment and customer preferences - Management believes Snowflake stands out as the best AI data platform, with increasing recognition of its product quality and capabilities [75] Question: Professional services growth - Growth in professional services was driven by a large customer milestone, with most services being performed by partners [80] Question: AI adoption and monetization strategy - The company has seen broad adoption of AI products without massive sales efforts, focusing on ease of use and value delivery [111] Question: Cortex AI usage and primary use cases - Primary use cases for Cortex AI involve combining structured and unstructured data for flexible access and actionable insights [117]

Financial Performance - Product revenue reached $1.09 billion in Q2 FY26, representing a 32% year-over-year growth[53] - The company's net revenue retention rate was 125% in Q2 FY26[41] - Non-GAAP product gross margin was 76% in Q2 FY26[41] - Non-GAAP operating margin was 11% in Q2 FY26[75] - The company had 654 customers with over $1 million in product revenue, a 30% year-over-year growth[41, 67] - Remaining Performance Obligations (RPO) reached $6.93 billion, with 50% expected to be recognized as revenue in the next twelve months[57] Customer and Market Growth - The company's total customer base grew to 12,062[61] - Forbes Global 2000 customers increased to 751[63] - The company estimates its Total Addressable Market (TAM) has more than doubled[38] AI Data Cloud - 40% of customers have at least one stable edge in data sharing[85] - Marketplace listings grew by 21% year-over-year to 3,400[85] Fiscal Year 2026 Guidance - The company projects product revenue of $4.395 billion for FY26[88] - The company projects Non-GAAP operating margin of 9% for FY26[88]

Another enterprise software name, Snowflake earnings are out. Julia Borston has those numbers. Julia, >> John, Snowflake beating on the top and bottom line, reporting adjusted earnings per share of 35 cents versus the 27 cents estimated revenues of 1.14% billion ahead of estimates of 1.09% billion.Product revenue also coming in ahead of expect ahead of expectations. Non-GAAP operating margin 11% versus the street account estimate of 8.2%. The company also guiding to thirdarter product revenue just ahead of ...

Snowflake gave a sales outlook for the fiscal year that topped analysts’ estimates, overcoming anxiety that software vendors will be hurt as the economy slows and new AI companies take away business https://t.co/ocoZgr01uE ...

Snowflake Reports Financial Results for the Second Quarter of Fiscal 2026 No-Headquarters/BOZEMAN, Mont. - August 27, 2025 - Snowflake (NYSE: SNOW), the AI Data Cloud company, today announced financial results for its second quarter of fiscal 2026, ended July 31, 2025. Revenue for the quarter was $1.1 billion, representing 32% year-over-year growth. Product revenue for the quarter was $1.09 billion, representing 32% year-over-year growth. Net revenue retention rate was 125% as of July 31, 2025. The company ...

Core Viewpoint - Snowflake Inc is set to report its fiscal second-quarter results, with a positive outlook indicated by 85% of data points collected being favorable this quarter compared to 50% in the previous quarter [1] Group 1: Financial Performance - Snowflake is guiding for product revenue growth of 25% for the quarter, which shows a sequential deceleration from 26% [2] - A 2% beat in revenue is required to drive acceleration compared to the previous quarter's 5% beat [2] Group 2: Market Opportunity - The total addressable market (TAM) for Snowflake is projected to more than double to $355 billion by 2029, up from $170 billion in 2024, indicating significant growth potential [4] - The TAM is large enough to accommodate both Snowflake and its competitor Databricks [4] Group 3: Analyst Ratings - Analyst Patrick Walravens has reiterated a Market Outperform rating for Snowflake with a price target of $260 [1]

Core Viewpoint - Snowflake Inc. (NYSE: SNOW) is expected to report Q2'26 earnings on August 27, 2025, after market close, with analysts showing optimism due to recent EPS estimate revisions [1] Summary by Relevant Sections Earnings Expectations - Analysts have revised EPS estimates for Snowflake Inc. with 6 upward revisions and 1 downward revision leading into the earnings report [1] Analyst Background - Michael Del Monte, a buy-side equity analyst with over 5 years of experience, emphasizes that investment recommendations consider the entire investment ecosystem rather than evaluating a company in isolation [1]

Core Insights - Snowflake (SNOW) is expected to report second-quarter fiscal 2026 results on August 27, with earnings estimated at 26 cents per share, reflecting a year-over-year growth of 44.4% and revenues projected at $1.09 billion, indicating a 24.9% increase from the previous year [1][3]. Financial Performance - Snowflake has consistently beaten the Zacks Consensus Estimate for earnings in the last four quarters, with an average earnings surprise of 34.72% [2]. - For the second quarter of fiscal 2026, Snowflake anticipates product revenues between $1.03 billion and $1.04 billion, representing a year-over-year growth of 25% [5][10]. - The Zacks Consensus Estimate for customers generating over $1 million in trailing 12-month product revenues is currently at 634, suggesting a 24.3% increase year-over-year [6]. Customer Growth and Retention - The company reported a net revenue retention rate of 124% at the end of the first quarter of fiscal 2026, indicating strong customer loyalty and usage [3]. - Snowflake's customer base grew by 19% year-over-year, reaching 11,578 customers, with 606 of them generating over $1 million in annual revenue [4][10]. Product and Innovation - Snowflake's AI capabilities are a significant driver of growth, with over 5,200 accounts utilizing machine learning features weekly [16]. - The company has introduced over 100 new features at Summit 2025, including Snowflake Copilot for conversational queries and enhanced AI Data Cloud capabilities [15]. Competitive Landscape - Snowflake faces stiff competition from major players like Amazon Web Services, Microsoft Azure, and Google Cloud, which may pressure revenue growth [20]. - Elevated infrastructure spending, particularly on GPUs for AI initiatives, is contributing to cost pressures [21]. Stock Performance and Valuation - Snowflake shares have appreciated 27.4% year-to-date, outperforming the Zacks Computer & Technology sector's 12.4% and the Zacks Internet Software industry's 19.4% growth [8]. - The stock is currently trading at a forward 12-month Price/Sales ratio of 12.93X, significantly higher than the industry's 5.7X, indicating a stretched valuation [12].

Core Insights - Snowflake (SNOW) is well-positioned to capitalize on the increasing demand for cloud-based data platforms, particularly through its AI Data Cloud, Snowpark, and Dynamic Tables, which enhance developer use cases and enable real-time analytics [1][9] Industry Outlook - The cloud analytics market is projected to grow from $35.39 billion in 2024 to $130.63 billion by 2030, representing a 25.5% CAGR, driven by enterprises moving from legacy systems to scalable platforms for managing data and analytics [2][9] Company Performance - The Zacks Consensus Estimate for Snowflake's second-quarter fiscal 2026 product revenues is $1.04 billion, an increase from $829.3 million in the same quarter last year, indicating strong demand for its cloud analytics solutions [3] - Snowflake's shares have increased by 27.5% year to date, outperforming the broader Zacks Computer & Technology sector's return of 12.5% and the Zacks Internet Software industry's increase of 19.3% [7] Competitive Landscape - The cloud data analytics market is highly competitive, with MongoDB (MDB) and Oracle (ORCL) emerging as significant competitors to Snowflake, each offering analytics-focused cloud platforms [4][5][9] - MongoDB's Atlas platform and Oracle's Cloud Infrastructure and Autonomous Database are both targeting similar markets, creating competitive pressure on Snowflake [6][9] Valuation Metrics - Snowflake's stock is trading at a forward 12-month Price/Sales ratio of 12.93X, significantly higher than the industry average of 5.72X, indicating a premium valuation [11] - The Zacks Consensus Estimate for Snowflake's second-quarter fiscal 2026 earnings is 26 cents per share, reflecting a year-over-year increase of 24.91% [14]