Snowflake 2026 Q3 Earnings Narrowed Losses by 11.2% as Revenue Surpasses Estimates

Snowflake (SNOW) reported fiscal 2026 Q3 earnings on Dec 5, 2025, with revenue of $1.21 billion, exceeding estimates of $1.18 billion. The company narrowed its net loss to $291.60 million from $327.90 million a year earlier, while raising full-year product revenue guidance to $4.446 billion.

Revenue

Snowflake’s total revenue grew 28.7% year-over-year to $1.21 billion, driven by robust product revenue of $1.16 billion, a 29% increase. Professional services and other revenue contributed $54.53 million, rounding out the total. The performance underscores strong demand for the company’s data analytics services.

Earnings/Net Income

Snowflake reduced its per-share loss to $0.87 from $0.98, a 11.2% improvement, and cut its net loss by 11.1%. Despite these gains, the company continues to report losses for the seventh consecutive year, highlighting persistent financial challenges.

Price Action

The stock declined 2.05% on the day, 8.94% for the week, and 13.80% month-to-date, reflecting mixed investor sentiment post-earnings.

Post-Earnings Price Action Review

The strategy of buying SNOW when it beats revenue and selling in 30 days yielded a -25.58% return, sharply underperforming the benchmark’s 53.57%. The approach had a maximum drawdown of 0.00%, a Sharpe ratio of -0.12, and volatility of 59.11%, underscoring its risk profile.

CEO Commentary

CEO Sridhar Ramaswamy highlighted 29% YoY product revenue growth and 37% RPO acceleration, emphasizing AI’s role in driving 50% of Q3 bookings. Strategic partnerships with Anthropic, SAP, and Google Cloud aim to expand AI adoption, while 1,200 customers have adopted agentic AI via Snowflake Intelligence.

Guidance

CFO Brian Robins raised FY 2026 product revenue guidance to $4.446 billion (28% growth) and maintained a 9% non-GAAP operating margin target. Q4 product revenue is projected at $1.195–$1.2 billion, reflecting 27% YoY growth.

Additional News

Snowflake expanded its Anthropic partnership to integrate Claude models into its AI Data Cloud, targeting regulated industries. Meanwhile, VP Christian Kleinerman sold $2.5 million in shares under a prearranged trading plan. The CEO reiterated confidence in AI-driven growth, with 7,300 weekly accounts leveraging Snowflake’s AI capabilities. These moves highlight strategic bets on enterprise AI and capital structure adjustments.

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