Q4 2026 Snowflake Inc Earnings Call Transcript
Key Points
- Snowflake Inc (SNOW) reported a 30% year-over-year growth in product revenue, reaching $1.23 billion for Q4.
- The company achieved a net revenue retention rate of 125%, indicating strong customer loyalty and expansion.
- Snowflake Inc (SNOW) added 2,332 net new customers in the fiscal year, including significant partnerships with companies like Seagate and Capital One.
- The company launched over 430 product capabilities, showcasing strong product innovation and development velocity.
- Snowflake Inc (SNOW) signed the largest deal in its history, exceeding $400 million in total contract value, highlighting its strategic importance to customers.
- Stock-based compensation remains high, though it decreased from 41% of revenue in fiscal '25 to 34% in fiscal '26.
- The company's non-GAAP product gross margin slightly decreased to 75.8%, indicating potential pressure on profitability.
- There is a risk of 'sticker shock' for customers as AI agents proliferate, potentially leading to cycles of strong growth followed by optimization.
- The acquisition of Observe, while strategic, presents a 150 basis point headwind to the non-GAAP adjusted free cash flow margin.
- Despite strong growth, the company faces challenges in ensuring customers fully understand the potential consumption uplift from leveraging AI agents, which could impact predictability.
Good day, ladies and gentlemen.
Thank you for joining today. Snowflake Q4 FY26 earnings call. My name is Tia and I will be your moderator for today's call.
All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. If you would like to ask a question, please press one on your telephone keypad.
I would now like to pass the call over to your host, Catherine McCracken, head of investor relations. Please proceed.
Good afternoon and thank you for joining us on Snowflake's 4th quarter fiscal 2026 earnings call.
Joining me on the call today are Shridar Ramaswamy, our Chief Executive Officer, Brian Robbins, our Chief Financial Officer, and Christian Kleinerman, our executive Vice President of product, who will participate in the Q&A session.
During today's call, we will review our financial results for the 4th quarter, fiscal 2026, and discuss our guidance for the 1st quarter and full
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