Snowflake 2026 Q3 Earnings Revenue Grows 28.7% but Net Loss Narrows by 11.2%

Snowflake (SNOW) reported fiscal 2026 Q3 earnings on Dec 3, 2025, with revenue rising 28.7% year-over-year to $1.21 billion, surpassing Wall Street’s $1.18 billion estimate. The company narrowed its net loss to $291.6 million, a 11.1% improvement, and raised full-year product revenue guidance to $4.446 billion.

Revenue

Snowflake’s total revenue surged by 28.7% to $1.21 billion in 2026 Q3, driven by robust product revenue growth to $1.16 billion. Professional services and other revenue added $54.53 million, contributing to the overall increase from $942.09 million in the prior-year quarter. The performance underscores the company’s ability to scale consumption-based data analytics demand.

Earnings/Net Income

The company improved its net loss by 11.1% year-over-year, reporting a net loss of $291.6 million compared to $327.9 million in 2025 Q3. Earnings per share (EPS) narrowed to a loss of $0.87 from $0.98, reflecting progress in cost management despite sustained losses for seven consecutive years. While the reduction in losses is positive, the EPS remains a drag on investor sentiment.

Post-Earnings Price Action Review

Following the earnings release, Snowflake’s stock edged up 0.92% during the latest trading day, reflecting cautious optimism. Over the most recent full trading week, shares gained 5.86%, suggesting short-term momentum. However, the stock fell 3.59% month-to-date, highlighting investor skepticism amid persistent losses and elevated valuations. The mixed performance underscores the market’s balancing act between Snowflake’s AI-driven growth potential and its ongoing profitability challenges.

CEO Commentary

CEO Sridhar Ramaswamy highlighted 29% year-over-year product revenue growth and a record 615 new customers, emphasizing AI as a core growth driver. The company achieved a $100M AI revenue run rate ahead of schedule, driven by Snowflake Intelligence adoption. Strategic partnerships with SAP, Anthropic, and AWS, alongside 23 Snowflake World Tour events, were cited as key enablers of ecosystem expansion.

Guidance

CFO Brian Robins guided Q4 product revenue to $1.195–$1.2 billion (27% YoY growth) and raised full-year 2026 product revenue to $4.446 billion. Non-GAAP metrics, including a 75% product gross margin and 9% operating margin, were reiterated, aligning with the company’s focus on consumption-based growth and operational efficiency.

Additional News

Snowflake announced a $200 million multi-year AI partnership with Anthropic to integrate Claude models into its Cortex AI platform, expanding agentic AI capabilities for enterprise data analysis. Meanwhile, VP Christian Kleinerman sold 10,000 shares via a prearranged plan, and the company expanded its collaboration with SAP and Palantir to enhance generative AI applications. These developments highlight Snowflake’s aggressive AI monetization strategy and operational transparency.