Snowflake(US:SNOW) ZACKS·2025-12-04 17:41Core Insights - Snowflake (SNOW) reported third-quarter fiscal 2026 non-GAAP earnings of 35 cents per share, exceeding the Zacks Consensus Estimate by 12.90% and up from 20 cents per share in the same quarter last year [1] - Revenues reached $1.21 billion, surpassing the consensus mark by 2.68% and reflecting a 29% year-over-year increase [1] Revenue Breakdown - Product revenues were $1.16 billion, accounting for 96% of total revenues, with a year-over-year increase of 29% [3] - Professional Services and other revenues totaled $54.5 million, contributing 4% to total revenues, marking a 30% year-over-year increase [3] - Revenue contributions by region included 78% from the Americas, 16% from EMEA, and 6% from APJ [1] Customer Metrics - The net revenue retention rate for existing customers was 125% [4] - The number of customers grew by 20% year-over-year, reaching 12,621 [4] - There are 688 customers with trailing 12-month product revenues exceeding $1 million, a 29% increase year-over-year [4] Margin and Expense Analysis - Non-GAAP gross margin contracted by 30 basis points year-over-year to 73%, while product gross margin was 76% [5] - Research & development expenses as a percentage of revenues decreased by 290 basis points year-over-year to 21% [5] - Operating margin expanded by 460 basis points year-over-year to 10.8% [6] Balance Sheet and Cash Flow - As of October 31, 2025, Snowflake had cash, cash equivalents, and short-term investments of $3.36 billion, down from $3.59 billion as of July 31, 2025 [7] - Remaining performance obligations at the end of the third quarter were $7.88 billion, a 37% increase year-over-year [7] - Adjusted free cash flow for the quarter was $136.4 million [7] Future Guidance - For Q4 fiscal 2026, Snowflake expects product revenues between $1.195 billion and $1.2 billion, indicating a year-over-year growth of 27% [8] - For fiscal 2026, the company anticipates product revenues of $4.446 billion, reflecting 28% year-over-year growth [8] - Expected operating margin for Q4 is 7%, with a product gross margin of 75% and a free cash flow margin of 25% for fiscal 2026 [8]