Q3 2026 Snowflake Inc Earnings Call Transcript
Key Points
- Snowflake Inc (SNOW) reported a strong Q3 with product revenue of $1.16 billion, marking a 29% year-over-year increase.
- The company achieved a major milestone by reaching a $100 million AI revenue run rate one quarter earlier than anticipated.
- Snowflake Inc (SNOW) added a record 615 new customers in Q3, demonstrating strong customer acquisition momentum.
- The company announced new strategic partnerships with major players like SAP, enhancing its ecosystem and expanding its market reach.
- Snowflake Inc (SNOW) maintained a stable net revenue retention rate of 125%, indicating strong customer loyalty and expansion within existing accounts.
- A hyperscaler outage impacted Snowflake Inc (SNOW)'s revenue by approximately $1 million to $2 million in the quarter.
- Despite strong growth, the Q3 product revenue beat was slightly below 3%, indicating potential challenges in exceeding market expectations.
- The company experienced a decrease in non-GAAP operating margin guidance for Q4, down to 7% from previous quarters.
- Snowflake Inc (SNOW) faces ongoing challenges in managing the complexity of data migrations from legacy systems.
- The company continues to navigate the balance between investing in growth opportunities and maintaining margin expansion, which could impact future profitability.
Good afternoon. Thank you for attending today's Snowflake Q3 Fiscal Year 2026 Earnings Call. My name is Jen, and I will be your moderator for today. (Operator Instructions)
At this time, I'd like to pass the conference over to our host, Katherine McCracken. Please proceed.
Good afternoon, and thank you for joining us on Snowflake's Q3 Fiscal 2026 Earnings Call. Joining me on the call today are Sridhar Ramaswamy, our Chief Executive Officer; and Brian Robins, our Chief Financial Officer.
During today's call, we will review our financial results for the third quarter fiscal 2026 and discuss our guidance for the fourth 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 materially from our actual results. Information concerning these risks and uncertainties is
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