Snowflake Reports Financial Results for the Second Quarter of Fiscal 2027

Transcript

1. #1prepared remarks

   EX-99.1 2 fy2027q2earnings.htm EX-99.1

2. #2prepared remarks

   Snowflake Reports Financial Results for the Second Quarter of Fiscal 2027 Product revenue of $1.49 billion in the second quarter, representing 37% year-over-year growth

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   • Revenue of $1.55 billion in the second quarter, representing 35% year-over-year growth • Net revenue retention rate of 126% • 828 customers with trailing 12-month product revenue greater than $1 million, representing 27% year-over-year growth • 829 Forbes Global 2000 customers • Remaining performance obligations of $9.00 billion, representing 30% year-over-year growth

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   MENLO PARK, Calif. - September 2, 2026 - Snowflake (NYSE: SNOW), the AI Data Cloud company, today announced financial results for its second quarter of fiscal 2027, ended July 31, 2026.

5. #5Sridhar Ramaswamy · CEO of Snowflake

   Snowflake delivered another strong quarter, with product revenue of $1.49 billion, up 37% year-over-year, as Snowflake continues to power the enterprise AI revolution,

6. #6Brian Robins · CFO of Snowflake

   Q2 marks our third consecutive quarter of product revenue growth acceleration, driven by strength in both our core data platform and a meaningful step-up in AI revenue,

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   • AI Momentum : CoCo surpassed 9,100 accounts 1 , adding more than 2,000 accounts in the quarter alone, while CoWork expanded to 5,800 accounts 1 . • Accelerated Product Velocity: Launched over 330 product capabilities to general availability in the first half of fiscal 2027, up 35% year-over-year, and recently introduced Cortex Sense for business context and Cortex AI Gateway, which extends AI from insight to action through its integration of Natoma. • AI Customer Wins : Customers like 1Password and Indeed chose Snowflake as the foundation for their data and AI transformation. Sayari cut costs by more than half and is using CoCo to accelerate the migration of 12 billion records. • Customer Growth : Added 692 net new customers in the quarter, up 32% year-over-year, including 14 net new Forbes Global 2000 customers.

8. #8for definitions of product

   Key Business Metrics

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   1 The average of the last 4 weeks of the quarter ended July 31, 2026, counted based on capacity and on-demand accounts using the respective features on a weekly basis via our internal classification.

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    Our guidance includes GAAP and non-GAAP financial measures.

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    For the third quarter of fiscal 2027, the company expects:

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    • Product revenue of $1,588 million to $1,593 million, representing 37% to 38% year-over-year growth • Non-GAAP operating margin 2 of 15.5% • Non-GAAP weighted-average shares used in computing net income per share attributable to common stockholders—diluted 2,3 of 382 million

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    For the full-year of fiscal 2027, the company expects:

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    • Product revenue of $6,070 million, representing 36% year-over-year growth, up from previous guidance of $5,840 million, or 31% year-over-year growth • Non-GAAP product gross margin 2 of 74.0% • Non-GAAP operating margin 2 of 14.5%, up from previous guidance of 13.5% • Non-GAAP adjusted free cash flow margin 2 of 23.0% • Non-GAAP weighted-average shares used in computing net income per share attributable to common stockholders—diluted 2,3 of 380 million

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    A reconciliation of GAAP guidance measures to corresponding non-GAAP guidance measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, expenses that may be incurred in the future. Stock-based compensation-related charges, including employer payroll tax-related items on employee stock transactions, are impacted by the timing of employee stock transactions, the future fair market value of our common stock, and our future hiring and retention needs, all of which are difficult to predict and subject to constant change. These factors could be material to our results computed in accordance with GAAP. Our fiscal year ends January 31, and numbers are rounded for presentation purposes.

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    Statement Regarding Use of Non-GAAP Financial Measures

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    Second Quarter Fiscal 2027 GAAP and Non-GAAP Results:

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    The following table summarizes our financial results for the second quarter of fiscal 2027:

19. #19for an explanation of

    Statement Regarding Use of Non-GAAP Financial Measures

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    (2) Calculated as net cash provided by operating activities as a percentage of revenue.

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    Note: Fiscal year ends January 31. Numbers are rounded for presentation purposes. | | | | | | | | | | | | | | | | | | |

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    The conference call will begin at 2 p.m. Pacific Time on September 2, 2026. Investors and participants may attend the call by dialing 1-800-330-6730 for domestic callers and 1-646-769-9500 for international callers (Access code: 102163).

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    The call will also be webcast live on the Snowflake Investor Relations website at https://investors.snowflake.com.

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    An audio replay of the conference call and webcast will be available two hours after its completion and will be accessible for 30 days on the Snowflake Investor Relations website.

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    An investor presentation providing additional information and analysis can be found at https://investors.snowflake.com.

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    Statement Regarding Use of Non‑GAAP Financial Measures

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    We report the following non-GAAP financial measures, which have not been prepared in accordance with generally accepted accounting principles in the United States (GAAP), in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.

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    • Non-GAAP Product gross profit, Operating income, Net income, Net income attributable to Snowflake Inc., and Net income per share attributable to Snowflake Inc. common stockholders — basic and diluted. Non-GAAP product gross profit, operating income, net income, and net income attributable to Snowflake Inc. are each defined as the respective GAAP measure, excluding, as applicable, the effect of (i) stock-based compensation-related charges, including employer payroll tax-related items on employee stock transactions, (ii) amortization of acquired intangibles, (iii) expenses associated with acquisitions and strategic investments, (iv) amortization of debt issuance costs, (v) restructuring charges or recoveries, net, (vi) asset impairment related to office facility exits, net of associated sublease income, if any, (vii) adjustments attributable to noncontrolling interest, if any, and (viii) the related income tax effect of these adjustments as well as the non-recurring income tax expense or benefit associated with acquisitions. Non-GAAP product gross margin is calculated as non-GAAP product gross profit as a percentage of product revenue. Non-GAAP operating margin is calculated as no…

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    • Free cash flow. Free cash flow is defined as net cash provided by operating activities reduced by purchases of property and equipment and any capitalized software development costs. Cash outflows for employee payroll tax items related to the net share settlement of equity awards are included in cash flow for financing activities and, as a result, do not have an effect on the calculation of free cash flow. Free cash flow margin is calculated as free cash flow as a percentage of revenue. We believe these measures provide useful supplemental information to investors because they are indicators of the strength and performance of our core business operations.

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    • Adjusted free cash flow. Adjusted free cash flow is defined as free cash flow plus (minus) net cash paid (received) on employer and employee payroll tax-related items on employee stock transactions. Employee payroll tax-related items on employee stock transactions are generally pass-through transactions that are expected to have a net zero impact on free cash flow over time, but that may impact free cash flow in any given fiscal quarter due to differences between the time that we receive funds from our employees and the time we remit those funds to applicable tax authorities. We believe that excluding the effects of these payroll tax-related items will enhance investors' ability to evaluate our free cash flow performance, including on a quarter-over-quarter basis. Adjusted free cash flow margin is calculated as adjusted free cash flow as a percentage of revenue. We believe these measures provide useful supplemental information to investors because they are indicators of the strength and performance of our core business operations.