Snowflake Inc. (NYSE: SNOW), the leading AI Data Cloud company, has announced impressive financial results for the fourth quarter and full-year of fiscal 2026, which concluded on January 31, 2026. The company reported product revenue of $1.23 billion, reflecting a remarkable year-over-year growth of 30%. Additionally, remaining performance obligations soared to $9.77 billion, marking a significant increase of 42% compared to the previous year.

Sridhar Ramaswamy, CEO of Snowflake, emphasized the transformative nature of the past year for businesses, stating, “Snowflake sits at the center of the enterprise AI revolution.” He attributed the company’s success to its robust foundation that supports AI, cross-cloud interoperability, and enterprise-grade governance.

2. Customer Growth and Strategic Expansion

Snowflake's fourth quarter highlighted its robust strategy focused on customer acquisition and expansion. The company added 740 net new customers in the quarter, a notable 40% increase year-over-year.

Brian Robins, CFO of Snowflake, mentioned that the company now has 733 customers spending over $1 million on a trailing 12-month basis, with a record number exceeding $10 million. This growth underlines Snowflake’s ability to establish long-term relationships with its customers. As of January 31, 2026, Snowflake serves 790 of the Forbes Global 2000 customers, representing a 5% year-over-year growth.

3. AI and Innovation Leadership

AI Momentum

Snowflake's leading AI capabilities have become essential for its customers' AI strategies, with over 9,100 accounts actively using Snowflake AI features. Notable clients, such as Toyota Motor Europe and United Rentals, have integrated these AI solutions into their operations. The introduction of Snowflake Intelligence has been particularly impactful, with almost 2,500 accounts adopting this essential capability within just three months.

Accelerated Product Velocity

In fiscal 2026, Snowflake launched more than 430 new capabilities, showcasing its commitment to innovation within the AI Data Cloud. Among these innovations is Cortex Code, a cutting-edge AI coding agent designed to enhance data management and analytics.

4. Strategic Partnerships and Acquisitions

Snowflake has also expanded its partnerships with industry leaders such as Anthropic, Google Cloud, and OpenAI. These alliances enable native access to leading foundation models, thus enhancing secure model choice and platform flexibility for customers.

The company further strengthened its position in the IT operations market with the acquisition of Observe by Snowflake, which integrates observability into data and AI workloads. Additionally, the acquisition of TensorStax aims to enhance AI-driven data engineering capabilities within the Cortex Code platform.

5. Financial Outlook

Snowflake provided a forward-looking financial guidance for the first quarter and full-year of fiscal 2027. For Q1, the company anticipates product revenue in the range of $1,262 to $1,267 million, representing a year-over-year growth of 27%. For the full-year fiscal 2027, Snowflake expects product revenue to reach $5,660 million, again reflecting a growth of 27%.

Key Financial Metrics

Non-GAAP Product Gross Profit Margin: 75.0%

Non-GAAP Operating Income Margin: 9.0%

Non-GAAP Adjusted Free Cash Flow Margin: 23.0%

Weighted-Average Shares Used for Net Income Per Share Calculation: 374 million for Q1; 376 million for the full-year fiscal 2027.

6. Conclusion

Snowflake Inc. has demonstrated resilience and strong growth in a rapidly evolving landscape shaped by AI advancements. With a solid financial performance, strategic customer expansion, and a commitment to innovation, Snowflake is well-positioned to lead in the AI Data Cloud sector as it moves into fiscal 2027. The company’s focus on building lasting customer relationships and enhancing its product offerings will be crucial as it navigates the next phase of growth.

Original press release