SNOW NYSE Russell 1000 Earnings call
Snowflake Inc. (SNOW) · Q2 2026 results and valuation
Share price: $301.22 · 2026-11-11
Snowflake Inc. provides a cloud-based data and artificial intelligence platform that allows organizations to consolidate, manage, and share data from various sources. The company serves a global customer base across multiple industries, including financial services, healthcare, and retail, by offering tools for analytics, data engineering, and application development. Source: 10-K annual report (2026-03-20)
Results Q2 2026 vs Q1 2026 · previous quarter · fiscal Q2 2027 · published 2 Sep 2026 and 27 May 2026
Net loss narrowed on the previous quarter. Management sounded about as positive as a typical company call, in its script and in answers to analysts.
1 · Numbers
Loss narrowed
Net income vs Q1 2026
Outlook given
Net income -191.7M vs -295.6M
Revenue +11.2%
Net income -191.7M vs -298.0M in Q2 2025 and -295.6M last quarter.
Why Against the same quarter last year (loss narrowed), net income rose mainly because of strong revenue growth, disciplined headcount management, and an expansion of the non-GAAP operating margin by more than 400 basis points.
2 · How management spoke
Typical
More upbeat than 64% of company calls
Answers to analysts: typical, in line with the script.
Similar to last call.
3 · What stood out
Snowflake increased its FY 2027 non-GAAP operating margin guidance from 13.5% to 14.5%.
Valuation
Is Snowflake Inc. undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2026-01-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 20.0% growth a year (3-year revenue growth), the model's fair value is $163.11 a share — the stock trades 85% above it. Today's price assumes 28.8% growth a year.
Current price
$301.22
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+28.8% for 10 yrs
Fair value / share
$163.11
Buy below
$122.33
Price vs fair value
Overvalued 85%
Price vs buy-below price
Overvalued 146%
Read between the lines
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Guidance
Snowflake updated its FY 2027 product revenue guidance to $6.07 billion, which represents 36% year over year growth.
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Guidance
Snowflake increased its FY 2027 non-GAAP operating margin guidance from 13.5% to 14.5% to reflect updated expectations for the fiscal year.
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Figure
Snowflake reported that 65 customers now have over $10 million in trailing 12 month product revenue.
Source quote
“In fact, 65 customers have now over $10 million in trailing 12 month product revenue.”
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Figure
The net revenue retention rate reached 126%, indicating the growth of revenue from existing customers.
Source quote
“As evidenced by our net revenue retention rate of 126%.”
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Figure
CoWork surpassed 9.1 thousand accounts and added more than 2,000 net new accounts this quarter, indicating rapid adoption.
Source quote
“Meanwhile, CoWork continues to see rapid adoption surpassing 9.1 thousand accounts and adding more than 2,000 net new accounts in this quarter alone.”
4 more
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Figure
The number of use cases and individual customer projects deployed on Snowflake increased 89% year over year, indicating broader adoption of the platform's capabilities.
Source quote
“The number of use cases, individual customer projects, deployed on Snowflake, increased 89% year over year.”
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Figure
Snowflake remains on track for GAAP profitability in Q4 fiscal 28 as built operating leverage strengthens the durability of that outcome.
Source quote
“We remain on track for GAAP profitability in Q4 fiscal 28, and the operating leverage we build along the way strengthens the durability of that outcome.”
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Figure
Snowflake expanded its non-GAAP operating margin by 400 basis points during the second quarter.
Source quote
“While expanding our non GAAP operating margin 400 basis points.”
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Figure
Snowflake added 692 net new customers, including 14 from the Global 2,000, representing a 32% increase in net new customer additions compared to the previous quarter.
Source quote
“This quarter, we added 692 net new customers including 14 from the Global 2,000. Representing a 32% increase in net new customer additions.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“We are entering the second half of fiscal 27 with strong product momentum, and we see a long runway for durable high growth and continued margin expansion.”
“As we drive this AI transformation for our customers, we are leading from the front using Cocoa and Cowork throughout our own business to accelerate productivity and efficiency.”
“At the same time, use cases 1 per account executive, increased 43% year over year demonstrating both growing customer demand and strong sales productivity.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-07-31)
| Metric | Q2 2026period end 2026-07-31 | Q1 2026period end 2026-04-30 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 1.55B | 1.39B | +11.2% | 1.14B | +35.1% |
| Gross profit | 1.04B | 926.5M | +11.9% | 773.2M | +34.1% |
| Operating income | -263.0M | -326.2M | Loss narrowed | -340.3M | Loss narrowed |
| Net income | -191.7M | -295.6M | Loss narrowed | -298.0M | Loss narrowed |
| EPS | -0.55 | -0.86 | Loss narrowed | -0.89 | Loss narrowed |
| P/E | 12-mo loss | 12-mo loss | — | 12-mo loss | — |
Topics
Most discussed now
- Under traction, it is translating into strong business performance, as evidenced by Snowflake's Q2 results.
- Snowflake's go to market teams continue to execute well against a strong demand environment.
- Consumption of coworkers scaling and driving revenue contribution alongside a diverse set of AI tools from AI functions document…
- In Q2, 48 net new customers added $1 million in trailing 12 month spend.
- Stress with each and every 1 of Snowflake's customers is the need to drive spend in an efficient way and...
Faded since Q1 2026
- Dropped Snowflake will continue to invest in all of the key functions that are responsible for driving Snowflake forward, the supply...
- Fading Snowflake's AI workload is now a significant revenue engine in its own right.
- Fading Snowflake's net new customer additions increased 38% year-over-year.
- Fading Something like creating an agent to run insight snowflake intelligence, just goes a whole lot faster because Snowflake...
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Material agreement; New financial obligation; Unregistered share sale; Other events · SEC 8-K
Snowflake Inc. completed a private offering of $2.0 billion in 0.00% Convertible Senior Notes due 2029 and $1.75 billion in 0.00% Convertible Senior Notes due 2031.
- Results of operations · SEC 8-K
Snowflake Inc. issued a press release on September 2, 2026, announcing its financial results for the fiscal quarter ended July 31, 2026.
- Director or officer change · SEC 8-K
Snowflake Inc. granted CEO Sridhar Ramaswamy a performance-based restricted stock unit award for 1,000,000 shares of common stock with specific price milestones and service requirements starting July 15, 2026.
- Shareholder vote results · SEC 8-K · routine
- Results of operations · SEC 8-K
Snowflake Inc. issued a press release on May 27, 2026, announcing its financial results for the fiscal quarter ended April 30, 2026.
- Regulation FD disclosure · SEC 8-K
Snowflake Inc. appointed Jonathan Beaulier as Chief Revenue Officer effective March 31, 2026, to succeed Michael Gannon, and reaffirmed its financial guidance for the first quarter and full-year of fiscal 2027.
- Results of operations · SEC 8-K
Snowflake Inc. issued its financial results for the fiscal fourth quarter and fiscal year ended January 31, 2026, on February 25, 2026.
- Director or officer change · SEC 8-K
Jeremy Burton resigned as a Class III director and member of the Cybersecurity Committee of Snowflake Inc. effective January 30, 2026, following the company's acquisition of Observe, Inc.
Catalyst calendar
management-stated targets — from the latest earnings call; plans, not promises.
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Q4 fiscal 28
GAAP profitability
Source quote
“We remain on track for GAAP profitability in Q4 fiscal 28, and the operating leverage we build along the way strengthens the durability of that outcome.”
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next 12 months
recognition of 54% of the $9 billion RPO as revenue
Source quote
“Of the $9 billion RPO, we expect approximately 54% to be recognized as revenue in the next 12 months.”
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FY 2027
product revenue of $6.07 billion
Source quote
“For FY 2027, we now expect product revenue of $6.07 billion representing 36% year over year growth.”
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Q3
product revenue between $1.588 and $1.593 billion
Source quote
“In Q3, we expect product revenue between $1.588 and $1.593 billion representing 37% to 38% year over year growth.”
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FY 2027
74% non GAAP product gross margin
Source quote
“For FY 2027, we now expect 74% non GAAP product gross margin.”