Total Revenue

+26% [N/A]

Total Revenue increased by 26% YoY, reflecting consistent underlying strengths such as product revenue growth and customer expansion observed in previous periods (e.g., product revenue growth of 34% in Q1 FY25 and 26% in Q1 FY26), which helped drive overall revenue performance [N/A].

Subscription Revenue (core business)

+28% [N/A]

Subscription Revenue grew by 28% YoY, supported by robust demand for core products, new product innovations, and expanding customer base—a trend consistent with earlier periods where subscription revenue growth was driven by factors like the launch of new features and increased usage [N/A].

Professional Services & Other Revenue

+15% [N/A]

Professional Services and Other Revenue increased by 15% YoY, continuing the growth seen previously (with Q1 FY25 showing a 17% gain and Q1 FY26 around 15.7% YoY) as a result of the expansion of service offerings and the evolution of customer support functions. " " " "

North America Revenue

+18% [N/A]

North America revenue grew by 18% YoY, largely due to its established role as the primary revenue contributor, consistent with historical trends (e.g., 78–79% share in earlier quarters) that reflect stable demand and market presence in the region. "

APAC Revenue

+40% [N/A]

APAC revenue surged by 40% YoY to $50 million, indicating strong market penetration and rapid adoption in the region, which contrasts with the more modest geographic shifts in previous periods (APAC remained around 5–6% of total revenue) and suggests accelerated regional growth [N/A].

Net Retention Rate

+5 pp [N/A]

Net Retention Rate improved by 5 percentage points to 135% YoY, highlighting enhanced revenue expansion from existing customers. This improvement is likely due to better upselling, product adoption, and overall customer engagement—findings that provide a positive counterpoint to earlier periods when NRR showed lower levels (e.g., 128% and 124% in prior quarters) [N/A].

Product Revenue

Q3 2026

no prior guidance [N/A]

$1,125,000,000 to $1,130,000,000 (25% to 26% YoY) "

no prior guidance

Non-GAAP Operating Margin

Q3 2026

no prior guidance [N/A]

9% "

no prior guidance

Revenue

FY 2026

$4.325 billion, 25% YoY "

$4,395,000,000 (27% YoY) "

raised

Non-GAAP Product Gross Margin

FY 2026

75% "

75% "

no change

Non-GAAP Operating Margin

FY 2026

8% "

9% "

raised

Non-GAAP Adjusted Free Cash Flow Margin

FY 2026

25% "

25% "

no change

Advanced AI Initiatives

Discussed extensively in Q1 (focus on Cortex AI, AI Data Cloud momentum with integrations including Meta’s Llama 4 and early proofs of concept " " ) and in Q4/Q3 (introduction of Cortex AI products, partnerships with Anthropic and integration of leading models " " " " )

Q2 highlights new offerings such as Snowflake Intelligence in public preview, enhanced Cortex AI features with integration including GPT‑5 models, a focus on agentic AI and clear indications of 25% AI use cases " " " " "

Continuous expansion and deepening of AI capabilities, with a new emphasis on agentic AI and public previews that signal maturation of the portfolio " " " " "

Monetization Risks

In Q1, risks were addressed by noting that AI isn’t sold as a separate SKU and its revenue impact is modest " " " , while Q4 highlighted risks such as performance improvements reducing resource consumption and cautious revenue guidance. " " Q3 provided no explicit details.

Q2 outlines that while AI adoption is growing, the monetization model is still evolving; emphasis on balancing core business with AI monetization challenges and uncertainties in translating adoption into revenue " " "

Persistent concerns with evolving strategies – early Q-periods focused on integrated AI usage while Q2 puts more explicit focus on refining monetization and aligning it with core business sustainability " " "

Robust Core Business Performance and High Customer Retention

Consistently strong performance noted in Q1 (strong revenue growth in core; high NRR around 124% " " ), Q4 (28% YoY growth and strong RPO, NRR at 126% " " ) and Q3 (over $900M revenue, NRR around 127% with large deal momentum " " " )

Q2 shows robust core revenue ($1.09B with 32% YoY growth) and higher customer retention (NRR of 125%, with record additions of high-revenue customers) " " "

Steady momentum with incremental improvements in performance and customer retention, reinforcing the strength of its core business " " "

Sustainability of Migration‐Driven Consumption

Q1 discussed uptick in migration usage via SnowConvert " ; Q4 mentioned planned migrations and AI‐powered migration efforts " " ; Q3 had no explicit mention.

Q2 emphasizes the large on‐premise migration market opportunity, invests in migration technology, and highlights visibility into migration-driven consumption trends " "

Clear continuity with an increasing focus on migration as a sustainable growth lever, with greater emphasis on technology investment and market potential in Q2 " "

Strategic Cloud Partnerships and Global Market Expansion

Q4 highlighted expanded Microsoft partnerships (integration of OpenAI models, Cortex Agents in Microsoft 365 and Teams) and a global BUILD summit " " " ; Q3 mentioned collaborations with AWS, Microsoft, and ServiceNow as well as expansion into Europe and APJ. " "

Q2 places focus on Microsoft Azure’s rapid 40% YoY growth, strong collaboration across infrastructure and end‑user products, plus replicating U.S. success in EMEA and APJ " "

Strengthening and broadening the cloud partnership approach, with renewed focus on Azure and global expansion strategies reinforcing an already diversified multi-cloud strategy " "

Customer Acquisition Strategy and Dependency on Large Deals

Q1 noted strong new logo growth (451 net new customers) and major financial services deals (two $100M+ contracts) " " " ; Q4 emphasized building sales “muscle” and planning around large deals " " " ; Q3 highlighted shifting focus to new workloads and maintaining large deal volume. " " "

Q2 continues to report increased net new customers (21% YoY growth) and significant progress with large accounts (record of 50 customers crossing $1M TTM and a large Global 2000 mix) " " "

A consistent and balanced focus on acquiring new customers while leveraging large deals, with ongoing adjustments in sales compensation and expansion strategies " " "

Sales and Marketing Investment and Evolving Cost Management

Q1 (significant hiring, revised sales compensation with bookings quotas and improved operating/free cash flow margins " " " " ); Q4 emphasized focused investments in go‑to‑market operations and operational efficiencies to boost margins " " ; Q3 highlighted continued cost efficiency measures using AI and streamlined management. " " "

Q2 continues strong hiring (heavy sales and marketing headcount increases, with 529 new hires and specific investments in productivity) and reports 11% non‑GAAP operating margin while maintaining cost discipline " "

Sustained aggressive investment in sales and marketing combined with evolving cost management practices that drive improved margins and operational efficiency, with a continued leverage of AI for productivity " "

Increasing Product Complexity and Portfolio Management Challenges

Q4 had indirect references via the challenge of integrating multiple innovative products and managing broad AI/ML offerings " " ; Q3 and Q1 did not explicitly discuss these challenges.

Q2 shows no direct mention of product complexity or portfolio management challenges.

This topic is not emphasized in Q2; earlier indirect mentions suggest that innovation continues but explicit complexity challenges have been de‑prioritized or integrated into overall product strategy " "