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Jul 31
Snowflake Q2 2026 Earnings Report
Snowflake reported strong Q2 results with solid product revenue growth and continued customer expansion.
Key Takeaways
Snowflake delivered $1.14B in total revenue with a net loss of $298M. Product revenue grew significantly while customer count and retention rates remained strong.
Product revenue reached $1.09B during the quarter.
Net revenue retention rate remained high at 125%.
654 customers generated over $1M in TTM product revenue.
Remaining performance obligations climbed to $6.9B.
Snowflake
Snowflake
Snowflake Revenue by Segment
Revenue by Segment
Product Revenue
CapyFin.comProfessional Services Revenue
CapyFin.com Forward Guidance
Snowflake expects Q3 FY26 product revenue between $1.125B and $1.13B and maintains strong operating margins.
Positive Outlook
- Product revenue expected to grow 25–26% YoY in Q3 FY26.
- Operating income projected at 9% margin (non-GAAP).
- Strong adjusted free cash flow forecast for the full year (25% margin).
- Full-year FY26 product revenue guidance at $4.395B.
- 75% product gross profit margin expected for FY26.
Challenges Ahead
- GAAP operating loss persists despite revenue growth.
- High stock-based compensation impacting margins.
- Declining cash and cash equivalents compared to previous quarter.
- Continued net losses forecasted despite top-line growth.
- Minimal guidance on macroeconomic risks or customer consumption shifts.
Revenue & Expenses
Visualization of income flow from segment revenue to net income