Snowflake Q4 2025 Earnings Report
Key Takeaways
Snowflake delivered solid financial results in Q4 FY25, with revenue reaching $986.8 million, reflecting a 27% year-over-year increase. Product revenue stood at $943.3 million, growing 28% YoY. Despite a GAAP operating loss of $386.7 million, the company achieved a non-GAAP operating income of $92.8 million. Free cash flow was strong at $415.4 million, highlighting Snowflake’s ability to generate significant cash from operations.
Revenue grew 27% YoY to $986.8 million, driven by strong product adoption.
Non-GAAP operating income reached $92.8 million, showing improved profitability.
Free cash flow was $415.4 million, up 42% YoY, reflecting strong financial health.
Remaining performance obligations increased to $6.9 billion, up 33% YoY.
Snowflake Revenue
Snowflake EPS
Snowflake Revenue by Segment
Snowflake Revenue by Geographic Location
Forward Guidance
Snowflake projects FY26 product revenue of $4.28 billion, reflecting 24% YoY growth. The company expects an improved operating margin and continued strong free cash flow generation.
Positive Outlook
- Product revenue forecasted at $4.28B, up 24% YoY.
- Operating margin projected to improve to 8%.
- Free cash flow expected to remain strong at 25% of revenue.
- Continued expansion in AI and data cloud capabilities.
- Strong demand from large enterprise customers.
Challenges Ahead
- Macroeconomic uncertainties may impact enterprise spending.
- Higher stock-based compensation costs remain a concern.
- Increasing competition in AI-driven data cloud solutions.
- Foreign exchange fluctuations could impact revenue.
- Customer contract renewals may influence revenue recognition timing.
Revenue & Expenses
Visualization of income flow from segment revenue to net income