Snowflake Reports Q2 FY2027 Earnings: 37% Product Revenue Growth and Raises Full-Year Guidance

Executive Summary

On September 2, 2026, Snowflake Inc. (NYSE: SNOW) filed a Form 8-K disclosing its financial results for the second quarter of fiscal 2027 ended July 31, 2026, and updating its forward-looking financial outlook.

Key Financial Highlights (Q2 FY2027)

• Product Revenue: $1.491.9 million, representing a 37% year-over-year growth, marking the third consecutive quarter of growth acceleration.
• Total Revenue: $1.55 billion, up 35% year-over-year.
• Net Revenue Retention Rate (NRR): 126%.
• Remaining Performance Obligations (RPO): $9.00 billion, an increase of 30% year-over-year.
• Operating Performance:
  • GAAP Operating Loss: $(263.0) million (-17.0% margin).
  • Non-GAAP Operating Income: $237.0 million (15.3% margin).
• Cash Flow Metrics:
  • Net cash provided by operating activities: $91.4 million (5.9% margin).
  • Non-GAAP Free Cash Flow: $83.8 million (5.4% margin).
  • Non-GAAP Adjusted Free Cash Flow: $92.3 million (6.0% margin).

Customer & Operational Metrics

• Total Customers: Added 692 net new customers in the quarter (+32% YoY), reaching over 14,500 total customers.
• Large Customers ($1M+ TTM Product Revenue): 828 customers, up 27% year-over-year.
• Forbes Global 2000 Customers: 829 customers (14 net additions during Q2).
• AI Platform Adoption: Feature adoption accelerated with CoCo surpassing 9,100 accounts (+2,000 in Q2) and CoWork expanding to 5,800 accounts.

Forward Guidance

Q3 FY2027 Outlook

• Product Revenue: $1,588 million to $1,593 million (37% to 38% YoY growth).
• Non-GAAP Operating Margin: 15.5%.
• Diluted Share Count (Non-GAAP): 382 million shares.

Full-Year FY2027 Outlook (Raised)

• Product Revenue: Raised to $6,070 million (36% YoY growth), up from previous guidance of $5,840 million (31% YoY growth).
• Non-GAAP Product Gross Margin: 74.0%.
• Non-GAAP Operating Margin: Raised to 14.5% (up from 13.5% prior).
• Non-GAAP Adjusted FCF Margin: 23.0%.
• Diluted Share Count (Non-GAAP): 380 million shares.