Snowflake 2026 Q2 Earnings Slight Earnings Improvement Amid Sustained Losses

Snowflake(SNOW) reported its fiscal 2026 Q2 earnings on Sep 05th, 2025. The results showed modest progress in narrowing losses, though the company remains unprofitable. Revenue growth was strong at 31.8%, with product revenue forming the bulk of total sales. The CEO highlighted the continued momentum of Snowflake’s cloud-native data platform, emphasizing its role in customer data modernization and strategic initiatives like AI integration and global expansion. However, the company has recorded losses for seven consecutive years during this quarter, underscoring ongoing financial challenges.

Snowflake’s revenue for Q2 2026 reached $1.14 billion, reflecting a 31.8% year-over-year increase from $868.82 million in Q2 2025. The company’s product revenue stood at $1.09 billion, while professional services and other revenue totaled $54.47 million. The results highlight the dominance of product offerings as the primary revenue driver for Snowflake, with professional services contributing a smaller but consistent portion of overall sales.

Snowflake narrowed its losses, with earnings per share (EPS) improving from -$0.95 to -$0.89, a 6.3% reduction. The company’s net loss also decreased to $297.93 million in Q2 2026 from $317.77 million in Q2 2025, representing a 6.2% improvement. Despite the reduction in losses, the company remains unprofitable and has sustained a net loss for the seventh consecutive year in this reporting period, pointing to ongoing financial headwinds.

The stock price of Snowflake edged up 0.74% during the latest trading day, but dropped 6.40% during the most recent full trading week. However, it gained 9.63% month-to-date, showing mixed short-term investor sentiment.

The post-earnings price action of Snowflake’s stock reflects a mixed investor reaction to the company’s latest results. While the stock gained 9.63% month-to-date, it also experienced a significant 6.40% drop during the most recent full trading week, indicating fluctuating market sentiment. The modest improvement in earnings per share and net loss reduction were not enough to fully restore investor confidence. The company’s long-term financial challenges and lack of profitability remain key concerns for shareholders.

The CEO of Snowflake emphasized the continued momentum of the company’s cloud-native data platform and its role in enabling customers to modernize their data infrastructure. The leadership highlighted the increasing adoption of Snowflake across various industries, driven by its elastic scalability, security, and support for semi-structured data. Despite acknowledging the challenges of maintaining high growth in a maturing market, the CEO expressed confidence in the company’s ability to innovate and expand its market share. Strategic investments in AI integration and global expansion were identified as key priorities to sustain competitive advantage. The tone conveyed forward-looking optimism, emphasizing the long-term value proposition of Snowflake’s platform in the evolving data landscape.

Snowflake’s CEO did not provide forward-looking guidance during the 2026 Q2 earnings call. The company reported an EPS of -$0.89 and revenue of $1.145 billion, with a net loss of $297.93 million for the quarter. No explicit quantitative targets or qualitative expectations were shared in the call for future performance metrics.

Additional News

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