Snowflake Q4 Earnings Rise on AI-Driven Demand

Snowflake Inc. (SNOW) reported Q4 earnings on Feb. 25, 2026, showing accelerating adoption of its data cloud platform. The company guided fiscal 2027 product revenue above Wall Street estimates while posting stronger quarterly product revenue and a larger contracted backlog.

Quarter Results and Customer Momentum

Snowflake’s Q4 product revenue reached $1.23 billion, up 30% year-over-year and exceeding its post-Q3 guidance of $1.195 billion to $1.2 billion. Remaining performance obligations (RPO), a measure of contracted future revenue, rose 42% year-over-year to $9.77 billion. The company expects to recognize 46% of that amount as revenue within the next 12 months, increasing near-term revenue visibility.

For the fiscal year ended Jan. 31, 2026, annual product revenue totaled $4.472 billion, up 29% year-over-year. The company reported a non-GAAP product gross margin of 75% for the quarter. Snowflake’s net revenue retention rate was 125%, reflecting expansion within its existing customer base.

The number of customers generating more than $1 million in product revenue grew 27% year-over-year to 733. Its client roster included 790 Forbes Global 2000 companies and a total of 13,328 customers, indicating deeper penetration among large enterprises.

Guidance and AI Demand

Snowflake guided fiscal 2027 product revenue above Wall Street estimates, attributing the outlook to AI-driven demand and new client adoption of its cloud data analytics platform. Management linked the guidance to the quarter’s revenue growth and expanded backlog, which they said strengthen visibility into fiscal 2027 and reflect customers’ increasing investment in large-scale data infrastructure to support AI workloads.