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Snowflake
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Updated Sep 4, 2026
Snowflake Q2 FY2027: Product revenue accelerates to 37% YoY growth as NRR ticks up to 126% and AI-related cloud infrastructure costs emerge as a margin headwind
Snowflake's Q2 FY2027 product revenue of $1.49 billion grew 37% year-over-year, the fastest rate in recent quarters, driven by deepening consumption from existing large enterprise customers — evidenced by NRR expanding to 126% and the $1M+ customer cohort growing to 828 from 654 a year ago. Two AI-focused acquisitions closed in H1 FY2027 — Observe (AI-powered observability, $595.8M) and Natoma Labs (Model Context Protocol platform for AI agents, $128.3M) — accelerating the AI Data Cloud buildout. Product gross margin compressed one point to 71% as AI inference and GPU costs in third-party cloud infrastructure grew $113.6M quarter-over-quarter, signaling that AI monetization remains consumption-led but cost absorption is intensifying.
Tone: bullishRevenue
$4.7B
SNOW 10-K · FY 2026
Employees
9,060
Revenue growth YoY
+29%
Headquarters
Menlo Park, CA
Profile
SNOW 10-K Item 1 · Mar 20, 2026Snowflake operates the AI Data Cloud, a cloud-native platform that enables organizations to consolidate, analyze, share, and monetize data across multiple public clouds and regions. The platform is sold on a consumption-based model and supports analytics, data engineering, AI, applications, collaboration, and transactional workloads. Snowflake serves 13,328 customers globally, including 790 of the Forbes Global 2000.
Read filing description ↓ Collapse description ↑
We believe that a cloud computing platform that puts data and artificial intelligence (AI) at its core will offer great benefits to organizations by allowing them to realize the value of the data that powers their businesses. By offering rich primitives for data and applications, we believe that we can create a data connected world where organizations have seamless access to explore, share, and unlock the value of data. Our vision is a world where data and AI turn possibilities into reality. To realize this vision, we deliver the AI Data Cloud, a network where Snowflake customers, partners, developers, data providers, and data consumers can break down data silos and derive value from a growing number of data sets in secure, governed, and compliant ways. Our platform is the innovative technology that powers the AI Data Cloud, enabling customers to consolidate data into a single source of truth to drive meaningful insights, apply AI to solve business problems, build data applications, and share data and data products. We provide our platform through a customer-centric, consumption-based business model. Our cloud-native architecture includes three independently scalable but logically integrated layers across storage, compute, and cloud services. The storage layer ingests massive amounts and varieties of structured, semi-structured, and unstructured data. The compute layer provides dedicated resources to enable users to simultaneously access common data sets for many use cases with minimal latency. Within the compute layer, users can clean and prepare their data, including any required metadata and business semantics, to create governed, unified data records that are AI ready and are written back to the storage layer. The cloud services layer enables users to securely use AI within applications, tools, and processes. This architecture is built on three major public clouds across 53 regional deployments around the world.
Primary products
- AI Data Cloud
- Data Engineering
- Analytics
- Transactions
- AI (Cortex AI, Cortex Analyst, Cortex Search, Cortex LLM Functions)
- Applications (Native Application Framework)
End markets
Geographies
Named customers
As of January 31, 2026, our customers included 790 of the Forbes Global 2000, based on the 2025 Forbes Global 2000 list, and those customers contributed approximately 43% of our revenue for the fiscal year ended January 31, 2026.
Named competitors
“We believe we compete favorably based on the following competitive factors: ability to provide and innovate around an architecture that is purpose-built for the cloud; ability to efficiently and seamlessly ingest diverse data types in one location at scale; ability to drive business value and ROI; ability to support multiple use cases in one platform, including various industry-specific use cases.” Competitive position, as stated in the filing
Revenue commentary · FY 2026
Revenue grew 29% year-over-year for fiscal year ended January 31, 2026, consistent with 29% growth in the prior fiscal year, though management notes that the revenue growth rate has slowed in recent periods relative to earlier rapid growth.
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