Snowflake 2026 Q3 Earnings 28.7% Revenue Growth, Narrowed Losses

Snowflake (SNOW) reported fiscal 2026 Q3 earnings on Dec 3, 2025, with revenue rising 28.7% year-over-year to $1.21 billion, exceeding expectations. The CEO highlighted robust product revenue growth and strategic AI advancements, while the company narrowed losses by 11.2%. However, the board maintained in-line guidance, signaling cautious optimism.

Revenue

Product revenue surged to $1.16 billion, while professional services and other revenue added $54.53 million, bringing the total to $1.21 billion. This marks a significant 28.7% year-over-year increase, driven by strong demand for Snowflake’s cloud data solutions and expanding AI integrations.

Earnings/Net Income

Snowflake reduced its net loss to $-291.60 million in 2026 Q3, a 11.1% improvement from $-327.90 million in 2025 Q3. The EPS narrowed to -$0.87 from -$0.98 per share, reflecting progress in cost management. The EPS improvement indicates positive momentum, though sustained losses highlight ongoing operational challenges.

Post-Earnings Price Action Review

A post-earnings strategy of buying shares after a revenue drop resulted in significant underperformance, with a -22.39% return versus a 73.44% benchmark, highlighting high risk and negative returns.

CEO Commentary

CEO Sridhar Ramaswamy emphasized Snowflake’s 29% YoY product revenue growth to $1.16 billion, a $7.88 billion RPO increase, and a stable 125% net retention rate. He underscored AI as a key driver, noting 7,300 active accounts using AI capabilities and a $100 million AI revenue run rate achieved early. Strategic priorities include accelerating AI innovation, expanding partnerships, and enhancing data engineering tools.

Guidance

Snowflake maintained in-line guidance for Q4 and full-year FY2026, reaffirming product revenue targets amid surging AI adoption.

Additional News

Snowflake secured a $200 million multi-year AI partnership with Anthropic to integrate Claude models into its Cortex AI platform, enabling agentic AI for enterprises. Over 12,600 customers now use Claude on Snowflake, with 7,300 weekly active accounts. Additionally, the company expanded its collaboration with SAP for bi-directional data integration and announced the acquisition of Select Star to enhance AI data governance. Insider sales by VP Christian Kleinerman and Officer Benoit Dageville totaling $8.7 million also drew attention.

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