Snowflake's Q4 2025: Key Contradictions in Customer Retention, AI Growth, and Sales Performance

These are the key contradictions discussed in Snowflake's latest 2025 Q4 earnings call, specifically including: Customer Retention and Churn, AI and Data Engineering Impact on Revenue Growth, and AI Product Contributions:



Revenue Growth and Product Diversification:
- Snowflake reported product revenue of $943 million for Q4 FY '25, up 28% year-over-year.
- The growth was driven by strong adoption of new products like Snowpark and increased adoption of open data formats, along with stable consumption patterns shown by a 126% net revenue retention rate.

AI and Machine Learning Expansion:
- Over 4,000 customers are currently using Snowflake's AI and ML technology on a weekly basis, indicating broad adoption of AI capabilities.
- This adoption is supported by innovations like Cortex AI, which provides seamless data management and allows customers to build data agents using state-of-the-art models like Anthropic's Claude.

Data Collaboration and Customer Adoption:
- Snowflake continues to see strong adoption of its data sharing capabilities, with customers like Stripe, NTT, and Braze having active data sharing connections with over 160 partner organizations.
- This expansion is driven by the ability for customers to securely exchange data, creating value across Snowflake's ecosystem.

Operational Efficiency and Margin Improvement:
- Snowflake's non-GAAP operating margin increased to 9% in Q4 FY '25, from 6% in the previous quarter.
- Improvements in margin were achieved through centralizing teams, targeted hiring, and efficiency measures, aligning with a focus on operational rigor and growth.