Snowflake

49 billion in the second quarter, representing 37% year-over-year growth Financial Highlights: MENLO PARK, Calif. --(BUSINESS WIRE)--Sep. 2, 2026-- Snowflake (NYSE: SNOW), the AI Data Cloud company, today announced financial results for its second quarter of fiscal 2027, ended July 31, 2026 . This press release features multimedia. 49 billion , up 37% year-over-year, as Snowflake continues to power the enterprise AI revolution,” said Sridhar Ramaswamy , CEO of Snowflake . “AI continues to compound our advantages, creating a flywheel effect across the business.

CoWork and CoCo are driving transformational outcomes for our customers, while fueling rapid adoption, user growth, new workloads, and overall platform consumption. Our rapid pace of innovation, tight go-to-market execution, and operational discipline position us well to capture the opportunity ahead. The Agentic Enterprise runs on Snowflake , and we're just getting started." “Q2 marks our third consecutive quarter of product revenue growth acceleration, driven by strength in both our core data platform and a meaningful step-up in AI revenue,” said Brian Robins , CFO of Snowflake .

“Importantly, we delivered this accelerating growth while expanding operating margin. ” Snowflake Business Highlights: See the section titled “Key Business Metrics” for definitions of product revenue, net revenue retention rate, customers with trailing 12-month product revenue greater than $1 million , Forbes Global 2000 customers, and remaining performance obligations. _______________________________________ 1 The average of the last 4 weeks of the quarter ended July 31, 2026 , counted based on capacity and on-demand accounts using the respective features on a weekly basis via our internal classification.

Financial Outlook: Our guidance includes GAAP and non-GAAP financial measures. For the third quarter of fiscal 2027, the company expects: For the full-year of fiscal 2027, the company expects: A reconciliation of GAAP guidance measures to corresponding non-GAAP guidance measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, expenses that may be incurred in the future. Stock-based compensation-related charges, including employer payroll tax-related items on employee stock transactions, are impacted by the timing of employee stock transactions, the future fair market value of our common stock, and our future hiring and retention needs, all of which are difficult to predict and subject to constant change.

These factors could be material to our results computed in accordance with GAAP. Our fiscal year ends January 31 , and numbers are rounded for presentation purposes. _______________________________________ 2 We report non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. See the section titled “Statement Regarding Use of Non-GAAP Financial Measures” for an explanation of non-GAAP financial measures. 3 The potential impact of future repurchases under our stock repurchase program is not reflected in our guidance for weighted-average shares used in computing net income per share attributable to common stockholders—diluted due to the uncertainty regarding, and the potential variability of, the timing and amount of repurchases.

Additionally, the dilutive effect of the shares issuable upon conversion of our 0% convertible senior notes due 2027 and 0% convertible senior notes due 2029 (the Notes) using the if-converted method, estimated at approximately 10 million shares for each of the third quarter and full-year of fiscal 2027 based on the current conversion price and net of the potential antidilutive impact of the capped call transactions entered into in connection with the Notes (the Capped Calls), is reflected in our guidance for weighted-average shares used in computing net income per share attributable to common stockholders—diluted.

Upon conversion of the Notes, we may choose to satisfy our conversion obligations by paying or delivering, as the case may be, cash, shares of our common stock, or a combination of both. The Capped Calls will have an antidilutive impact when the average stock price of our common stock in a given period is higher than their exercise price. The estimated antidilutive impact of the Capped Calls reflected in our guidance is based on the market price of our common stock as of July 31, 2026 , and is subject to change with future stock price movements.

0% (1) We report non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. See the section titled “Statement Regarding Use of Non-GAAP Financial Measures” for an explanation of non-GAAP financial measures, and the table titled “GAAP to Non-GAAP Reconciliations” for a reconciliation of GAAP to non-GAAP financial measures. (2) Calculated as net cash provided by operating activities as a percentage of revenue. Note: Fiscal year ends January 31 . Numbers are rounded for presentation purposes.

m. Pacific Time on September 2, 2026 . Investors and participants may attend the call by dialing 1-800-330-6730 for domestic callers and 1-646-769-9500 for international callers (Access code: 102163). com . An audio replay of the conference call and webcast will be available two hours after its completion and will be accessible for 30 days on the Snowflake Investor Relations website. com . Statement Regarding Use of Non‑GAAP Financial Measures We report the following non-GAAP financial measures, which have not been prepared in accordance with generally accepted accounting principles in the United States (GAAP), in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.

We use these non-GAAP financial measures internally for financial and operational decision-making purposes and as a means to evaluate period-to-period comparisons. Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. Our presentation of non-GAAP financial measures may not be comparable to similar measures used by other companies. We encourage investors to carefully consider our results under GAAP, as well as our supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand our business.

Please see the tables included at the end of this release for the reconciliation of GAAP to non-GAAP results. Key Business Metrics We monitor our key business metrics, including (i) free cash flow and (ii) the other metrics set forth below to help us evaluate our business and growth trends, establish budgets, measure the effectiveness of our sales and marketing efforts, and assess operational efficiencies. See the section titled “Statement Regarding Use of Non-GAAP Financial Measures” for the definition of free cash flow. The calculation of our key business metrics may differ from other similarly titled metrics used by other companies, securities analysts, or investors.

” Words such as “guidance,” “outlook,” “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “plan,” “goals,” “estimate,” “potential,” “predict,” “forecast,” “position,” “see,” “on track,” “may,” “will,” “might,” “could,” “intend,” “shall,” “future,” and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Other than statements of historical fact, all statements contained in this release and accompanying oral presentation are forward-looking statements, including statements regarding (i) our future operating results, targets, or financial position, including expectations regarding revenue recognition; (ii) our business strategy, plans, opportunities, or priorities, including with respect to strategic transactions; (iii) the release, adoption, and use of our new or enhanced products, services, and technology offerings, including those that are under development or not generally available; (iv) market size and growth, trends, and competitive considerations; (v) our vision, strategy, and expected benefits relating to artificial intelligence (AI), the enterprise AI revolution, Snowflake Cortex AI, Snowpark, Snowflake Marketplace , the AI Data Cloud, and AI Data Clouds for specific industries or product categories, including the expected benefits and network effects of the AI Data Cloud; and (vi) the integration, interoperability, and availability of our products, services, and technology offerings with and on third-party products and platforms, including public cloud platforms and AI models.

The forward-looking statements contained in this release and the accompanying oral presentation are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause actual results or outcomes to be materially different from any future results or outcomes expressed or implied by the forward-looking statements. These risks, uncertainties, assumptions, and other factors include, but are not limited to, those related to our business and financial performance; general market and business conditions, downturns, or uncertainty, including higher inflation, tariffs and trade wars, extended federal government shutdowns, higher interest rates, fluctuations or volatility in capital markets, energy markets, or foreign currency exchange rates, and geopolitical instability; our ability to attract and retain customers that use our platform to support their end-to-end data lifecycle; our ability to execute on our business strategy, including our strategy across our product categories and an effective AI strategy; our ability to respond rapidly and effectively to emerging technology trends, including the adoption and use of AI, and the extent to which our investments in new technologies are successful; the extent to which customers continue to optimize consumption, including with respect to AI features; our ability to compete effectively in a continually evolving market in which enterprises are increasingly adopting AI to perform core functions and significant disruption is being driven by AI; our ability to attract, recruit, and retain qualified personnel to support our operations and growth; the impact of new or optimized product features and pricing strategies on consumption, including AI credit pricing, Iceberg tables, tiered storage pricing, and adaptive warehouses; our ability to consummate and realize the anticipated benefits of any acquisitions, strategic investments, partnerships, or alliances; unforeseen technical, operational, or business challenges impacting the timing, scope, or success of strategic partnerships; the extent to which customers continue to rationalize budgets and prioritize cash flow management, including through shortened contract durations; our ability to develop new products and services and enhance existing products and services; the extent to which customer adoption of new product capabilities results in durable consumption; the growth of successful native applications on the Snowflake Marketplace ; our ability to increase and predict customer consumption of our platform, particularly in light of the impact of holidays on customer consumption patterns; our ability to increase our penetration into existing markets and enter and grow new markets, including highly-regulated markets such as financial services, healthcare, and the public sector; the effectiveness of our security measures designed to protect against security incidents and the impact of cybersecurity threat activity directed at us or our customers and any resulting reputational or financial damage; success of our sales and marketing efforts and our ability to promote our brand; our ability to protect our intellectual property rights and the extent to which they provide us with a competitive advantage; our ability to manage growth; our ability to sublease or terminate certain of our office facility commitments and the impact of related asset impairment; the impact and timing of stock repurchases under our stock repurchase program; our ability to reduce stock-based compensation as a percentage of our revenue; our ability to achieve GAAP profitability; and our ability to meet the requirements of the Notes and the settlement timing and method for the Notes and the Capped Calls.

Further information on these and additional risks, uncertainties, assumptions, and other factors that could cause actual outcomes and results to differ materially from those included in or contemplated by the forward-looking statements contained in this release are included under the caption “Risk Factors” and elsewhere in our Form 10-Q for the fiscal quarter ended April 30, 2026 and other filings and reports we make with the Securities and Exchange Commission from time to time, including our Form 10-Q that will be filed for the fiscal quarter ended July 31, 2026 .

Moreover, we operate in a very competitive and rapidly changing environment, and new risks may emerge from time to time. It is not possible to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor(s) may cause actual results or outcomes to differ materially from those contained in any forward-looking statements we may make. As a result of these risks, uncertainties, assumptions, and other factors, you should not rely on any forward-looking statements as predictions of future events. Forward-looking statements speak only as of the date the statements are made and are based on information available to us at the time those statements are made and/or management's good faith belief as of that time with respect to future events.

Except as required by law, we undertake no obligation, and do not intend, to update these forward-looking statements, to review or confirm analysts’ expectations, or to provide interim reports or updates on the progress of the current financial quarter. About Snowflake Snowflake is the platform for the AI era, making it easy for enterprises to innovate faster and get more value from data. More than 14,500 customers around the globe, including hundreds of the world’s largest companies, use Snowflake’s AI Data Cloud to build, use and share data, applications and AI.

With Snowflake , data and AI are transformative for everyone. com (NYSE: SNOW). Source: Snowflake Inc. Snowflake Inc. Condensed Consolidated Statements of Operations (in thousands, except per share data) (unaudited) Three Months Ended July 31 , Six Months Ended July 31 , 2026 2025 2026 2025 Revenue $ 1,546,793 $ 1,144,969 $ 2,937,744 $ 2,187,043 Cost of revenue 510,075 371,815 974,575 720,601 Gross profit 1,036,718 773,154 1,963,169 1,466,442 Operating expenses: Sales and marketing 611,615 501,957 1,200,567 960,511 Research and development 567,476 492,003 1,102,413 964,407 General and administrative 120,594 119,470 249,310 329,057 Total operating expenses 1,299,685 1,113,430 2,552,290 2,253,975 Operating loss (262,967 ) (340,276 ) (589,121 ) (787,533 ) Interest income 41,996 49,467 83,141 102,630 Interest expense (2,081 ) (2,074 ) (4,161 ) (4,145 ) Other income (expense), net 34,762 (4,985 ) 25,191 (33,043 ) Loss before income taxes (188,290 ) (297,868 ) (484,950 ) (722,091 ) Provision for income taxes 3,430 62 2,341 5,791 Net loss (191,720 ) (297,930 ) (487,291 ) (727,882 ) Less: net income attributable to noncontrolling interest — 87 — 227 Net loss attributable to Snowflake Inc.

$ (191,720 ) $ (298,017 ) $ (487,291 ) $ (728,109 ) Net loss per share attributable to Snowflake Inc. 18 ) Weighted-average shares used in computing net loss per share attributable to Snowflake Inc. common stockholders—basic and diluted 349,257 335,215 347,356 333,957 Snowflake Inc. Condensed Consolidated Balance Sheets (in thousands) (unaudited) July 31, 2026 January 31, 2026 Assets Current assets: Cash and cash equivalents $ 1,707,187 $ 2,828,163 Short-term investments 637,508 1,201,523 Accounts receivable, net 718,464 1,303,740 Deferred commissions, current 222,084 214,058 Prepaid expenses and other current assets 208,593 195,128 Total current assets 3,493,836 5,742,612 Long-term investments 1,984,482 755,013 Property and equipment, net 207,981 248,611 Operating lease right-of-use assets 285,019 274,897 Goodwill 1,639,003 1,194,367 Intangible assets, net 426,527 246,916 Deferred commissions, non-current 222,581 241,759 Other assets 431,030 428,320 Total assets $ 8,690,459 $ 9,132,495 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 185,250 $ 145,559 Accrued expenses and other current liabilities 908,005 879,537 Operating lease liabilities, current 59,787 49,598 Deferred revenue, current 2,568,489 3,346,997 Total current liabilities 3,721,531 4,421,691 Convertible senior notes, net 2,283,985 2,279,827 Operating lease liabilities, non-current 420,043 411,689 Deferred revenue, non-current 27,756 14,440 Other liabilities 87,480 80,746 Stockholders’ equity 2,149,664 1,924,102 Total liabilities and stockholders’ equity $ 8,690,459 $ 9,132,495 Snowflake Inc.

Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) Three Months Ended July 31 , Six Months Ended July 31 , 2026 2025 2026 2025 Cash flows from operating activities: Net loss $ (191,720 ) $ (297,930 ) $ (487,291 ) $ (727,882 ) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 68,629 54,837 136,234 103,641 Non-cash operating lease costs 17,669 16,156 35,551 33,998 Amortization of deferred commissions 59,743 33,158 117,473 58,954 Stock-based compensation, net of any amounts capitalized 423,582 404,217 826,052 783,677 Net accretion of discounts on investments (1,081 ) (5,717 ) (3,286 ) (13,369 ) Net realized and unrealized losses (gains) on strategic investments (34,755 ) 5,580 (25,257 ) 35,265 Amortization of debt issuance costs 2,081 2,074 4,161 4,145 Asset impairment related to office facility exits 112 2,131 17,836 108,619 Deferred income tax (1,927 ) (3,445 ) (8,489 ) (3,445 ) Other 4,534 1,685 7,355 (3,489 ) Changes in operating assets and liabilities, net of effects of business combinations: Accounts receivable (146,587 ) (117,606 ) 600,630 276,051 Deferred commissions (69,521 ) (53,750 ) (106,320 ) (84,864 ) Prepaid expenses and other assets 22,104 (4,486 ) (351 ) (22,338 ) Accounts payable 130,904 11,771 41,231 7,348 Accrued expenses and other liabilities 108,847 93,291 28,056 97,226 Operating lease liabilities (22,635 ) (14,559 ) (41,842 ) (26,397 ) Deferred revenue (278,622 ) (52,511 ) (807,163 ) (323,871 ) Net cash provided by operating activities 91,357 74,896 334,580 303,269 Cash flows from investing activities: Purchases of property and equipment (7,554 ) (16,665 ) (18,005 ) (61,654 ) Cash paid for business combinations, net of cash, cash equivalents and restricted cash acquired (1,992 ) (164,230 ) (254,449 ) (164,230 ) Purchases of intangible assets — (1,311 ) — (1,311 ) Purchases of investments (919,669 ) (636,469 ) (1,816,116 ) (1,649,044 ) Sales of investments 128,762 1,476 238,456 18,875 Maturities and redemptions of investments 451,016 517,947 896,186 1,502,129 Net cash used in investing activities (349,437 ) (299,252 ) (953,928 ) (355,235 ) Cash flows from financing activities: Proceeds from exercise of stock options 67,845 28,186 74,424 34,446 Proceeds from issuance of common stock under employee stock purchase plan — — 66,987 53,193 Taxes paid related to net share settlement of equity awards (184,896 ) (161,999 ) (327,742 ) (294,497 ) Repurchases of common stock — — (300,003 ) (490,638 ) Payments of deferred purchase consideration for business combinations — (226 ) (2,250 ) (600 ) Net cash used in financing activities (117,051 ) (134,039 ) (488,584 ) (698,096 ) Effect of exchange rate changes on cash, cash equivalents, and restricted cash (1,860 ) (175 ) (4,684 ) 12,222 Net decrease in cash, cash equivalents, and restricted cash (376,991 ) (358,570 ) (1,112,616 ) (737,840 ) Cash, cash equivalents, and restricted cash—beginning of period 2,128,678 2,319,408 2,864,303 2,698,678 Cash, cash equivalents, and restricted cash—end of period $ 1,751,687 $ 1,960,838 $ 1,751,687 $ 1,960,838 Snowflake Inc.