Q2 2026 Snowflake Inc Earnings Call Transcript
Key Points
- Snowflake Inc (SNOW) reported a strong 32% year-over-year growth in product revenue, reaching $1.09 billion for Q2.
- The company achieved a healthy net revenue retention rate of 125%, indicating strong customer loyalty and expansion.
- Snowflake Inc (SNOW) introduced significant product innovations, including Snowflake Intelligence and Cortex AISQL, enhancing AI capabilities.
- The company added 533 new customers, including 15 Global 2000 companies, demonstrating robust customer acquisition.
- Snowflake Inc (SNOW) increased its growth expectations for the year, reflecting confidence in continued strong performance.
- Despite strong growth, the non-GAAP operating margin for Q3 is expected to decrease to 9%, down from 11% in Q2.
- The company faces challenges in expanding its presence in Europe, where growth is still developing compared to the US.
- There is increased competition from other cloud providers and data platforms, which could impact Snowflake Inc (SNOW)'s market share.
- The CFO transition is still in progress, which may create uncertainty in financial leadership.
- Snowflake Inc (SNOW) is heavily investing in sales and marketing, which could pressure margins if not matched by revenue growth.
Good afternoon, thank you for attending the Snowflake Inc. second quarter fiscal year '26 earnings call. My name is Cameron, and I'll be your moderator for today. (Operator Instructions) And I would now like to pass over to your Jimmy Sexton, the Head of Investor Relations.
Good afternoon, and thank you for joining us on Snowflake's Q2 fiscal 2026 earnings call. Joining me on the call today are Sridhar Ramaswamy, our Chief Executive Officer; Mike Scarpelli, our Chief Financial Officer; and Christian Kleinerman, our Executive Vice President of Product, who will participate in the Q&A.
During today's call, we will review our financial results for the second-quarter of fiscal 2026 and discuss our guidance for the third quarter and full year fiscal 2026. During today's call, we will make forward-looking statements, including statements related to our business operations and financial performance.
These statements are subject to risks and uncertainties, which could cause them to differ
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