Snowflake Reports Financial Results for the Third Quarter of Fiscal 2026
No-Headquarters/BOZEMAN, Mont.--( BUSINESS WIRE)--Snowflake (NYSE: SNOW), the AI Data Cloud company, today announced financial results for its third quarter of fiscal 2026, ended October 31, 2025.
Revenue for the quarter was $1.21 billion, representing 29% year-over-year growth. Product revenue for the quarter was $1.16 billion, representing 29% year-over-year growth. Net revenue retention rate was 125% as of October 31, 2025. The company now has 688 customers with trailing 12-month product revenue greater than $1 million and 766 Forbes Global 2000 customers, representing 29% and 4% year-over-year growth, respectively. Remaining performance obligations were $7.88 billion, representing 37% year-over-year growth. See the section titled “Key Business Metrics” for definitions of product revenue, net revenue retention rate, customers with trailing 12-month product revenue greater than $1 million, Forbes Global 2000 customers, and remaining performance obligations.
“Snowflake delivered another strong quarter, with product revenue of $1.16 billion, up 29% year-over-year, and remaining performance obligations totaling $7.88 billion, up 37% year-over-year,” said Sridhar Ramaswamy, CEO of Snowflake. “Snowflake is the cornerstone for our customers’ data and AI strategies, driving real business impact at scale. Snowflake Intelligence, our enterprise AI agent, saw the fastest adoption ramp in Snowflake history and is transforming how businesses interact with their data, delivering real-time, actionable intelligence. Combined with our strategic partnerships with the world’s leading AI model providers, clouds and application platforms, Snowflake is supercharging the entire data lifecycle with AI-driven capabilities.”
Third Quarter Fiscal 2026 GAAP and Non-GAAP Results:
The following table summarizes our financial results for the third quarter of fiscal 2026:
Third Quarter Fiscal 2026
GAAP Results
Third Quarter Fiscal 2026
Non-GAAP Results (1)
Amount
(millions)
Year/Year
Growth
Product revenue
$1,158.4
29%
Amount
(millions)
Margin
Amount
(millions)
Margin
Product gross profit
$837.6
72%
$879.2
76%
Operating income (loss)
($329.5)
(27%)
$131.3
11%
Net cash provided by operating activities
$137.5
11%
(2)
Free cash flow
$113.6
9%
Adjusted free cash flow
$136.4
11%
(1) We report non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. See the section titled “Statement Regarding Use of Non-GAAP Financial Measures” for an explanation of non-GAAP financial measures, and the table titled “GAAP to Non-GAAP Reconciliations” for a reconciliation of GAAP to non-GAAP financial measures.
(2) Calculated as net cash provided by operating activities as a percentage of revenue.
Note: Fiscal year ends January 31. Numbers are rounded for presentation purposes.
Financial Outlook:
Our guidance includes GAAP and non-GAAP financial measures.
The following table summarizes our guidance for the fourth quarter of fiscal 2026:
Fourth Quarter Fiscal 2026
GAAP Guidance
Fourth Quarter Fiscal 2026
Non-GAAP Guidance (1)
Amount
(millions)
Year/Year
Growth
Product revenue
$1,195 - $1,200
27%
Margin
Operating income
7%
Amount
(millions)
Weighted-average shares used in computing net income per share attributable to Snowflake Inc. common stockholders—diluted (2)
377
(1) We report non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. See the section titled “Statement Regarding Use of Non-GAAP Financial Measures” for an explanation of non-GAAP financial measures.
(2) The potential impact of future repurchases under our stock repurchase program is not reflected in our guidance for weighted-average shares used in computing net income per share attributable to Snowflake Inc. common stockholders—diluted due to the uncertainty regarding, and the potential variability of, the timing and amount of repurchases. Additionally, the dilutive effect of the shares issuable upon conversion of our 0% convertible senior notes due 2027 and 0% convertible senior notes due 2029 (the Notes) using the if-converted method, estimated at approximately 11 million shares for the fourth quarter of fiscal 2026 based on the current conversion price and net of the potential antidilutive impact of the capped call transactions entered into in connection with the Notes (the Capped Calls), is reflected in our guidance for weighted-average shares used in computing net income per share attributable to Snowflake Inc. common stockholders—diluted. Upon conversion of the Notes, we may choose to satisfy our conversion obligations by paying or delivering, as the case may be, cash, shares of our common stock, or a combination of both. The Capped Calls will have an antidilutive impact when the average stock price of our common stock in a given period is higher than their exercise price. The estimated antidilutive impact of the Capped Calls reflected in our guidance is based on the market price of our common stock as of October 31, 2025, and is subject to change with future stock price movements.
The following table summarizes our guidance for the full-year of fiscal 2026:
Full-Year Fiscal 2026
GAAP Guidance
Full-Year Fiscal 2026
Non-GAAP Guidance (1)
Amount
(millions)
Year/Year
Growth
Product revenue (2)
$4,446
28%
Margin
Product gross profit
75%
Operating income
9%
Adjusted free cash flow
25%
Amount
(millions)
Weighted-average shares used in computing net income per share attributable to Snowflake Inc. common stockholders—diluted (3)
373
(1) We report non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. See the section titled “Statement Regarding Use of Non-GAAP Financial Measures” for an explanation of non-GAAP financial measures.
(2) The full-year fiscal 2026 product revenue guidance is based on the higher end of the fourth quarter fiscal 2026 guidance.
(3) The potential impact of future repurchases under our stock repurchase program is not reflected in our guidance for weighted-average shares used in computing net income per share attributable to Snowflake Inc. common stockholders—diluted due to the uncertainty regarding, and the potential variability of, the timing and amount of repurchases. Additionally, the dilutive effect of the shares issuable upon conversion of the Notes using the if-converted method, estimated at approximately 11 million shares for the full-year of fiscal 2026 based on the current conversion price and net of the potential antidilutive impact of the Capped Calls, is reflected in our guidance for weighted-average shares used in computing net income per share attributable to Snowflake Inc. common stockholders—diluted. Upon conversion of the Notes, we may choose to satisfy our conversion obligations by paying or delivering, as the case may be, cash, shares of our common stock or a combination of both. The Capped Calls will have an antidilutive impact when the average stock price of our common stock in a given period is higher than their exercise price. The estimated antidilutive impact of the Capped Calls reflected in our guidance is based on the market price of our common stock as of October 31, 2025, and is subject to change with future stock price movements.
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. We have provided a reconciliation of GAAP to non-GAAP financial measures in the financial statement tables for our historical non-GAAP financial results included in this release. Our fiscal year ends January 31, and numbers are rounded for presentation purposes.
Conference Call Details
The conference call will begin at 3 p.m. Mountain Time on December 3, 2025. Investors and participants may attend the call by dialing (833) 470-1428 (Access code: 752353). For investors and participants outside the United States, see global dial-in numbers at https://www.netroadshow.com/events/global-numbers?confId=90709 (Access code: 752353).
The call will also be webcast live on the Snowflake Investor Relations website at https://investors.snowflake.com.
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.
Investor Presentation Details
An investor presentation providing additional information and analysis can be found at https://investors.snowflake.com.
Statement Regarding Use of Non‑GAAP Financial Measures
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.
We use these non-GAAP financial measures internally for financial and operational decision-making purposes and as a means to evaluate period-to-period comparisons. Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. Our presentation of non-GAAP financial measures may not be comparable to similar measures used by other companies. We encourage investors to carefully consider our results under GAAP, as well as our supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand our business. Please see the tables included at the end of this release for the reconciliation of GAAP to non-GAAP results.
Key Business Metrics
We monitor our key business metrics, including (i) free cash flow and (ii) the other metrics set forth below to help us evaluate our business and growth trends, establish budgets, measure the effectiveness of our sales and marketing efforts, and assess operational efficiencies. See the section titled “Statement Regarding Use of Non-GAAP Financial Measures” for the definition of free cash flow. The calculation of our key business metrics may differ from other similarly titled metrics used by other companies, securities analysts, or investors.
Use of Forward‑Looking Statements
This release and the accompanying oral presentation contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding our performance, including but not limited to statements in the section titled “Financial Outlook.” Words such as “guidance,” “outlook,” “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “plan,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” “shall,” and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Other than statements of historical fact, all statements contained in this release and accompanying oral presentation are forward-looking statements, including statements regarding (i) our future operating results, targets, or financial position; (ii) our business strategy, plans, opportunities, or priorities; (iii) the release, adoption, and use of our new or enhanced products, services, and technology offerings, including those that are under development or not generally available; (iv) market size and growth, trends, and competitive considerations; (v) our vision, strategy and expected benefits relating to artificial intelligence (AI), Snowpark, Snowflake Marketplace, the AI Data Cloud, and AI Data Clouds for specific industries or product categories, including the expected benefits and network effects of the AI Data Cloud; and (vi) the integration, interoperability, and availability of our products, services, and technology offerings with and on third-party products and platforms, including public cloud platforms.
The forward-looking statements contained in this release and the accompanying oral presentation are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause actual results or outcomes to be materially different from any future results or outcomes expressed or implied by the forward-looking statements. These risks, uncertainties, assumptions, and other factors include, but are not limited to, those related to our business and financial performance; general market and business conditions, downturns, or uncertainty, including higher inflation, tariffs and trade wars, extended federal government shutdowns, higher interest rates, fluctuations or volatility in capital markets or foreign currency exchange rates, and geopolitical instability; our ability to attract and retain customers that use our platform to support their end-to-end data lifecycle; the extent to which customers continue to optimize consumption; the impact of new or optimized product features and pricing strategies on consumption, including Iceberg tables and tiered storage pricing; unforeseen technical, operational, or business challenges impacting the timing, scope, or success of strategic partnerships; the extent to which customers continue to rationalize budgets and prioritize cash flow management, including through shortened contract durations; our ability to develop new products and services and enhance existing products and services; the extent to which customer adoption of new product capabilities results in durable consumption; the growth of successful native applications on the Snowflake Marketplace; our ability to respond rapidly to emerging technology trends, including the adoption and use of AI, and the extent to which our investments in new technologies are successful; our ability to execute on our business strategy, including our strategy across our product categories; our ability to increase and predict customer consumption of our platform, particularly in light of the impact of holidays on customer consumption patterns; our ability to compete effectively; our ability to increase our penetration into existing markets and enter and grow new markets, including highly-regulated markets such as financial services, healthcare, and the public sector; our ability to attract, recruit, and retain qualified personnel to support our operations and growth; the impact of cybersecurity threat activity directed at our customers and any resulting reputational or financial damage; our ability to manage growth; our ability to sublease or terminate certain of our office facility commitments and the impact of related asset impairment; the impact and timing of stock repurchases under our stock repurchase program; and our ability to meet the requirements of the Notes and the settlement timing and method for the Notes and the Capped Calls.
Further information on these and additional risks, uncertainties, assumptions, and other factors that could cause actual outcomes and results to differ materially from those included in or contemplated by the forward-looking statements contained in this release are included under the caption “Risk Factors” and elsewhere in our Form 10-Q for the fiscal quarter ended July 31, 2025 and other filings and reports we make with the Securities and Exchange Commission from time to time, including our Form 10-Q that will be filed for the fiscal quarter ended October 31, 2025.
Moreover, we operate in a very competitive and rapidly changing environment, and new risks may emerge from time to time. It is not possible to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor(s) may cause actual results or outcomes to differ materially from those contained in any forward-looking statements we may make. As a result of these risks, uncertainties, assumptions, and other factors, you should not rely on any forward-looking statements as predictions of future events. Forward-looking statements speak only as of the date the statements are made and are based on information available to us at the time those statements are made and/or management's good faith belief as of that time with respect to future events. Except as required by law, we undertake no obligation, and do not intend, to update these forward-looking statements, to review or confirm analysts’ expectations, or to provide interim reports or updates on the progress of the current financial quarter.
About Snowflake
Snowflake is the platform for the AI era, making it easy for enterprises to innovate faster and get more value from data. More than 12,600 customers around the globe, including hundreds of the world’s largest companies, use Snowflake’s AI Data Cloud to build, use and share data, applications and AI. With Snowflake, data and AI are transformative for everyone. Learn more at snowflake.com (NYSE: SNOW).
Source: Snowflake Inc.
Snowflake Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
Three Months Ended October 31,
Nine Months Ended October 31,
2025
2024
2025
2024
Revenue
$
1,212,909
$
942,094
$
3,399,952
$
2,639,626
Cost of revenue
390,873
320,894
1,111,474
881,489
Gross profit
822,036
621,200
2,288,478
1,758,137
Operating expenses:
Sales and marketing
550,364
437,962
1,510,875
1,239,409
Research and development
494,027
442,435
1,458,434
1,290,889
General and administrative
107,118
106,260
436,175
297,171
Total operating expenses
1,151,509
986,657
3,405,484
2,827,469
Operating loss
(329,473
)
(365,457
)
(1,117,006
)
(1,069,332
)
Interest income
45,481
48,655
148,111
152,699
Interest expense
(2,075
)
(689
)
(6,220
)
(689
)
Other expense, net
(1,854
)
(8,474
)
(34,897
)
(37,722
)
Loss before income taxes
(287,921
)
(325,965
)
(1,010,012
)
(955,044
)
Provision for income taxes
3,682
1,937
9,473
8,444
Net loss
(291,603
)
(327,902
)
(1,019,485
)
(963,488
)
Less: net income (loss) attributable to noncontrolling interest
2,354
(3,623
)
2,581
(5,322
)
Net loss attributable to Snowflake Inc.
$
(293,957
)
$
(324,279
)
$
(1,022,066
)
$
(958,166
)
Net loss per share attributable to Snowflake Inc. common stockholders—basic and diluted
$
(0.87
)
$
(0.98
)
$
(3.04
)
$
(2.88
)
Weighted-average shares used in computing net loss per share attributable to Snowflake Inc. common stockholders—basic and diluted
339,648
331,761
335,875
333,136
Snowflake Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
October 31, 2025
January 31, 2025
Assets
Current assets:
Cash and cash equivalents
$
1,941,657
$
2,628,798
Short-term investments
1,411,448
2,008,873
Accounts receivable, net
938,145
922,805
Deferred commissions, current
167,926
97,662
Prepaid expenses and other current assets
164,319
211,234
Total current assets
4,623,495
5,869,372
Long-term investments
1,041,474
656,476
Property and equipment, net
265,844
296,393
Operating lease right-of-use assets
254,641
359,439
Goodwill
1,174,960
1,056,559
Intangible assets, net
256,580
278,028
Deferred commissions, non-current
209,511
183,967
Other assets
403,686
333,704
Total assets
$
8,230,191
$
9,033,938
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable
$
193,691
$
169,767
Accrued expenses and other current liabilities
725,793
515,454
Operating lease liabilities, current
40,208
35,923
Deferred revenue, current
2,423,622
2,580,039
Total current liabilities
3,383,314
3,301,183
Convertible senior notes, net
2,277,749
2,271,529
Operating lease liabilities, non-current
367,658
377,818
Deferred revenue, non-current
10,884
15,501
Other liabilities
57,653
61,264
Snowflake Inc. stockholders’ equity
2,132,933
2,999,929
Noncontrolling interest
—
6,714
Total liabilities and stockholders’ equity
$
8,230,191
$
9,033,938
Snowflake Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Three Months Ended October 31,
Nine Months Ended October 31,
2025
2024
2025
2024
Cash flows from operating activities:
Net loss
$
(291,603
)
$
(327,902
)
$
(1,019,485
)
$
(963,488
)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization
57,878
47,046
161,519
132,378
Non-cash operating lease costs
15,764
14,802
49,762
42,370
Amortization of deferred commissions
36,458
23,249
95,412
68,835
Stock-based compensation, net of amounts capitalized
412,278
363,259
1,195,955
1,051,195
Net accretion of discounts on investments
(5,100
)
(9,097
)
(18,469
)
(33,869
)
Net realized and unrealized losses on strategic investments in equity securities
255
8,611
35,520
35,814
Amortization of debt issuance costs
2,075
689
6,220
689
Asset impairment related to office facility exit
96
—
108,715
—
Deferred income tax
—
(581
)
(3,445
)
(532
)
Non-cash restructuring charges (recoveries), net
(11,159
)
1,146
(11,159
)
1,146
Other
1,216
1,815
(2,273
)
3,733
Changes in operating assets and liabilities, net of effects of business combinations:
Accounts receivable
(288,676
)
(163,488
)
(12,625
)
328,704
Deferred commissions
(96,816
)
(26,031
)
(181,680
)
(62,785
)
Prepaid expenses and other assets
19,823
9,109
(2,515
)
42,456
Accounts payable
28,948
11,296
36,296
102,721
Accrued expenses and other liabilities
120,620
34,065
217,846
38,702
Operating lease liabilities
(15,990
)
(9,055
)
(42,387
)
(34,344
)
Deferred revenue
151,452
122,773
(172,419
)
(226,686
)
Net cash provided by operating activities
137,519
101,706
440,788
527,039
Cash flows from investing activities:
Purchases of property and equipment
(23,905
)
(13,440
)
(85,559
)
(35,002
)
Capitalized software development costs
—
(10,032
)
—
(23,428
)
Cash paid for business combinations, net of cash acquired
—
(8,219
)
(164,230
)
(17,125
)
Purchases of intangible assets
—
—
(1,311
)
—
Purchases of investments
(341,172
)
(1,014,243
)
(1,990,216
)
(2,288,985
)
Sales of investments
522
13,597
19,397
54,394
Maturities and redemptions of investments
612,794
765,195
2,114,923
2,276,653
Settlement of cash flow hedges
—
—
—
(749
)
Net cash provided by (used in) investing activities
248,239
(267,142
)
(106,996
)
(34,242
)
Cash flows from financing activities:
Proceeds from exercise of stock options
28,849
11,548
63,295
35,212
Proceeds from issuance of common stock under employee stock purchase plan
34,930
30,318
88,123
77,053
Taxes paid related to net share settlement of equity awards
(190,724
)
(81,493
)
(485,221
)
(359,607
)
Repurchases of common stock
(232,896
)
(1,016,004
)
(723,534
)
(1,932,333
)
Distributions to noncontrolling interest holders
(2,145
)
—
(2,145
)
—
Payments of deferred purchase consideration for business combinations
—
—
(600
)
—
Gross proceeds from issuance of convertible senior notes
—
2,300,000
—
2,300,000
Cash paid for issuance costs on convertible senior notes
—
(31,230
)
—
(31,230
)
Purchases of capped calls related to convertible senior notes
—
(195,500
)
—
(195,500
)
Net cash provided by (used in) financing activities
(361,986
)
1,017,639
(1,060,082
)
(106,405
)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash
21
778
12,243
(1,131
)
Net increase (decrease) in cash, cash equivalents, and restricted cash
23,793
852,981
(714,047
)
385,261
Cash, cash equivalents, and restricted cash—beginning of period
1,960,838
1,313,257
2,698,678
1,780,977
Cash, cash equivalents, and restricted cash—end of period
$
1,984,631
$
2,166,238
$
1,984,631
$
2,166,238
Snowflake Inc.
GAAP to Non-GAAP Reconciliations
(in thousands, except per share data and percentages)
(unaudited)
Three Months Ended October 31,
Nine Months Ended October 31,
2025
2024
2025
2024
Amount
Amount as a % of Revenue
Amount
Amount as a % of Revenue
Amount
Amount as a % of Revenue
Amount
Amount as a % of Revenue
Revenue:
Product revenue
$
1,158,377
96%
$
900,282
96%
$
3,245,686
95%
$
2,519,119
95%
Professional services and other revenue
54,532
4%
41,812
4%
154,266
5%
120,507
5%
Revenue
$
1,212,909
100%
$
942,094
100%
$
3,399,952
100%
$
2,639,626
100%
Year-over-year growth
29%
28%
29%
30%
Cost of revenue:
GAAP cost of product revenue
$
320,810
$
263,622
$
908,402
$
718,861
Adjustments:
Stock-based compensation-related charges
(32,418)
(32,240)
(95,169)
(89,253)
Amortization of acquired intangibles
(14,193)
(10,325)
(39,480)
(30,808)
Restructuring recoveries (charges), net (1)
5,013
(7,678)
5,013
(7,678)
Non-GAAP cost of product revenue
$
279,212
$
213,379
$
778,766
$
591,122
GAAP cost of professional services and other revenue
$
70,063
$
57,272
$
203,072
$
162,628
Adjustments:
Stock-based compensation-related charges
(15,031)
(14,067)
(44,691)
(41,671)
Amortization of acquired intangibles
(1,663)
(1,663)
(4,934)
(4,952)
Non-GAAP cost of professional services and other revenue
$
53,369
$
41,542
$
153,447
$
116,005
GAAP cost of revenue
$
390,873
32%
$
320,894
34%
$
1,111,474
33%
$
881,489
33%
Adjustments:
Stock-based compensation-related charges
(47,449)
(46,307)
(139,860)
(130,924)
Amortization of acquired intangibles
(15,856)
(11,988)
(44,414)
(35,760)
Restructuring recoveries (charges), net (1)
5,013
(7,678)
5,013
(7,678)
Non-GAAP cost of revenue
$
332,581
27%
$
254,921
27%
$
932,213
27%
$
707,127
27%
Gross profit (loss):
GAAP product gross profit
$
837,567
$
636,660
$
2,337,284
$
1,800,258
Adjustments:
Stock-based compensation-related charges
32,418
32,240
95,169
89,253
Amortization of acquired intangibles
14,193
10,325
39,480
30,808
Restructuring charges (recoveries), net (1)
(5,013)
7,678
(5,013)
7,678
Non-GAAP product gross profit
$
879,165
$
686,903
$
2,466,920
$
1,927,997
GAAP professional services and other revenue gross loss
$
(15,531)
$
(15,460)
$
(48,806)
$
(42,121)
Adjustments:
Stock-based compensation-related charges
15,031
14,067
44,691
41,671
Amortization of acquired intangibles
1,663
1,663
4,934
4,952
Non-GAAP professional services and other revenue gross profit
$
1,163
$
270
$
819
$
4,502
GAAP gross profit
$
822,036
68%
$
621,200
66%
$
2,288,478
67%
$
1,758,137
67%
Adjustments:
Stock-based compensation-related charges
47,449
46,307
139,860
130,924
Amortization of acquired intangibles
15,856
11,988
44,414
35,760
Restructuring charges (recoveries), net (1)
(5,013)
7,678
(5,013)
7,678
Non-GAAP gross profit
$
880,328
73%
$
687,173
73%
$
2,467,739
73%
$
1,932,499
73%
Gross margin:
GAAP product gross margin
72%
71%
72%
71%
Adjustments:
Stock-based compensation-related charges as a % of product revenue
3%
3%
3%
5%
Amortization of acquired intangibles as a % of product revenue
1%
1%
1%
1%
Restructuring charges (recoveries), net as a % of product revenue
—%
1%
—%
—%
Non-GAAP product gross margin
76%
76%
76%
77%
GAAP professional services and other revenue gross margin
(28%)
(37%)
(32%)
(35%)
Adjustments:
Stock-based compensation-related charges as a % of professional services and other revenue
27%
34%
30%
35%
Amortization of acquired intangibles as a % of professional services and other revenue
3%
4%
3%
4%
Non-GAAP professional services and other revenue gross margin
2%
1%
1%
4%
GAAP gross margin
68%
66%
67%
67%
Adjustments:
Stock-based compensation-related charges as a % of revenue
4%
5%
5%
5%
Amortization of acquired intangibles as a % of revenue
1%
1%
1%
1%
Restructuring charges (recoveries), net as a % of revenue
—%
1%
—%
—%
Non-GAAP gross margin
73%
73%
73%
73%
Operating expenses:
GAAP sales and marketing expense
$
550,364
45%
$
437,962
47%
$
1,510,875
44%
$
1,239,409
47%
Adjustments:
Stock-based compensation-related charges
(110,629)
(89,450)
(304,068)
(253,811)
Amortization of acquired intangibles
(10,164)
(7,906)
(27,250)
(23,337)
Non-GAAP sales and marketing expense
$
429,571
36%
$
340,606
36%
$
1,179,557
35%
$
962,261
36%
GAAP research and development expense
$
494,027
41%
$
442,435
47%
$
1,458,434
43%
$
1,290,889
49%
Adjustments:
Stock-based compensation-related charges
(242,789)
(204,139)
(715,890)
(617,915)
Amortization of acquired intangibles
(2,723)
(3,680)
(8,091)
(10,959)
Restructuring recoveries (charges), net (1)
6,026
(9,863)
6,034
(9,863)
Non-GAAP research and development expense
$
254,541
21%
$
224,753
24%
$
740,487
22%
$
652,152
25%
GAAP general and administrative expense
$
107,118
9%
$
106,260
11%
$
436,175
13%
$
297,171
12%
Adjustments:
Stock-based compensation-related charges
(41,525)
(41,549)
(127,478)
(112,521)
Amortization of acquired intangibles
(124)
(451)
(1,004)
(1,343)
Expenses associated with acquisitions and strategic investments
(889)
(1,334)
(3,458)
(4,099)
Restructuring recoveries, net (1)
389
—
1,603
—
Asset impairment related to office facility exit, net of sublease income (2)
(66)
—
(108,686)
—
Non-GAAP general and administrative expense
$
64,903
5%
$
62,926
7%
$
197,152
6%
$
179,208
7%
GAAP total operating expenses
$
1,151,509
95%
$
986,657
105%
$
3,405,484
100%
$
2,827,469
108%
Adjustments:
Stock-based compensation-related charges
(394,943)
(335,138)
(1,147,436)
(984,247)
Amortization of acquired intangibles
(13,011)
(12,037)
(36,345)
(35,639)
Expenses associated with acquisitions and strategic investments
(889)
(1,334)
(3,458)
(4,099)
Restructuring recoveries (charges), net (1)
6,415
(9,863)
7,637
(9,863)
Asset impairment related to office facility exit, net of sublease income (2)
(66)
—
(108,686)
—
Non-GAAP total operating expenses
$
749,015
62%
$
628,285
67%
$
2,117,196
63%
$
1,793,621
68%
Operating income (loss):
GAAP operating loss
$
(329,473)
(27%)
$
(365,457)
(39%)
$
(1,117,006)
(33%)
$
(1,069,332)
(41%)
Adjustments:
Stock-based compensation-related charges (3)
442,392
381,445
1,287,296
1,115,171
Amortization of acquired intangibles
28,867
24,025
80,759
71,399
Expenses associated with acquisitions and strategic investments
889
1,334
3,458
4,099
Restructuring charges (recoveries), net (1)
(11,428)
17,541
(12,650)
17,541
Asset impairment related to office facility exit, net of sublease income (2)
66
—
108,686
—
Non-GAAP operating income
$
131,313
11%
$
58,888
6%
$
350,543
10%
$
138,878
5%
Operating margin:
GAAP operating margin
(27%)
(39%)
(33%)
(41%)
Adjustments:
Stock-based compensation-related charges as a % of revenue
37%
40%
38%
42%
Amortization of acquired intangibles as a % of revenue
2%
3%
2%
3%
Expenses associated with acquisitions and strategic investments as a % of revenue
—%
—%
—%
—%
Restructuring charges (recoveries), net as a % of revenue
(1%)
2%
—%
1%
Asset impairment related to office facility exit, net of sublease income as a % of revenue
—%
—%
3%
—%
Non-GAAP operating margin
11%
6%
10%
5%
Net income (loss):
GAAP net loss
$
(291,603)
(24%)
$
(327,902)
(35%)
$
(1,019,485)
(30%)
$
(963,488)
(37%)
Adjustments:
Stock-based compensation-related charges (3)
442,392
381,445
1,287,296
1,115,171
Amortization of acquired intangibles
28,867
24,025
80,759
71,399
Expenses associated with acquisitions and strategic investments
889
1,334
3,458
4,099
Restructuring charges (recoveries), net (1)
(11,428)
17,541
(12,650)
17,541
Asset impairment related to office facility exit, net of sublease income (2)
66
—
108,686
—
Amortization of debt issuance costs
2,075
689
6,220
689
Income tax effect related to the above adjustments and acquisitions
(39,999)
(23,820)
(106,467)
(57,558)
Non-GAAP net income
$
131,259
11%
$
73,312
8%
$
347,817
10%
$
187,853
7%
Net income (loss) attributable to Snowflake Inc.:
GAAP net loss attributable to Snowflake Inc.
$
(293,957)
(24%)
$
(324,279)
(34%)
$
(1,022,066)
(30%)
$
(958,166)
(36%)
Adjustments:
Stock-based compensation-related charges (3)
442,392
381,445
1,287,296
1,115,171
Amortization of acquired intangibles
28,867
24,025
80,759
71,399
Expenses associated with acquisitions and strategic investments
889
1,334
3,458
4,099
Restructuring charges (recoveries), net (1)
(11,428)
17,541
(12,650)
17,541
Asset impairment related to office facility exit, net of sublease income (2)
66
—
108,686
—
Amortization of debt issuance costs
2,075
689
6,220
689
Income tax effect related to the above adjustments and acquisitions
(39,999)
(23,820)
(106,467)
(57,558)
Adjustments attributable to noncontrolling interest, net of tax
2,278
(3,719)
2,521
(3,949)
Non-GAAP net income attributable to Snowflake Inc.
$
131,183
11%
$
73,216
8%
$
347,757
10%
$
189,226
7%
Net income (loss) per share attributable to Snowflake Inc. common stockholders—basic and diluted:
GAAP net loss per share attributable to Snowflake Inc. common stockholders—basic and diluted
$
(0.87)
$
(0.98)
$
(3.04)
$
(2.88)
Weighted-average shares used in computing GAAP net loss per share attributable to Snowflake Inc. common stockholders—basic and diluted
339,648
331,761
335,875
333,136
Non-GAAP net income per share attributable to Snowflake Inc. common stockholders—basic
$
0.39
$
0.22
$
1.03
$
0.57
Weighted-average shares used in computing non-GAAP net income per share attributable to Snowflake Inc. common stockholders—basic
339,648
331,761
335,875
333,136
Non-GAAP net income per share attributable to Snowflake Inc. common stockholders—diluted
$
0.35
$
0.20
$
0.93
$
0.52
GAAP weighted-average shares used in computing GAAP net loss per share attributable to Snowflake Inc. common stockholders—basic and diluted
339,648
331,761
335,875
333,136
Add: Effect of potentially dilutive common stock equivalents
23,460
22,615
24,477
25,858
Add: Effect of convertible senior notes
14,603
7,777
14,603
2,611
Less: Effect of antidilutive impact of capped call transactions
(4,358)
—
(3,000)
—
Non-GAAP weighted-average shares used in computing non-GAAP net income per share attributable to Snowflake Inc. common stockholders—diluted (4)
373,353
362,153
371,955
361,605
Free cash flow and adjusted free cash flow:
GAAP net cash provided by operating activities
$
137,519
11%
$
101,706
11%
$
440,788
13%
$
527,039
20%
Adjustments:
Purchases of property and equipment
(23,905)
(13,440)
(85,559)
(35,002)
Capitalized software development costs
—
(10,032)
—
(23,428)
Non-GAAP free cash flow
113,614
9%
78,234
8%
355,229
10%
468,609
18%
Adjustments:
Net cash paid on payroll tax-related items on employee stock transactions (5)
22,810
8,563
55,229
49,830
Non-GAAP adjusted free cash flow
$
136,424
11%
$
86,797
9%
$
410,458
12%
$
518,439
20%
Non-GAAP free cash flow margin
9%
8%
10%
18%
Non-GAAP adjusted free cash flow margin
11%
9%
12%
20%
GAAP net cash provided by (used in) investing activities
$
248,239
$
(267,142)
$
(106,996)
$
(34,242)
GAAP net cash provided by (used in) financing activities
$
(361,986)
$
1,017,639
$
(1,060,082)
$
(106,405)
(1) Restructuring charges net of recoveries represent certain costs incurred by us in connection with a restructuring plan for a majority-owned subsidiary, net of associated income and recoveries.
(2) Asset impairment related to office facility exit, net of sublease income primarily relates to our San Mateo office facility, which we ceased using during the three months ended April 30, 2025.
(3) Stock-based compensation-related charges included employer payroll tax-related expenses on employee stock transactions of approximately $19.6 million and $61.2 million for the three and nine months ended October 31, 2025, respectively, and $9.3 million and $40.8 million for the three and nine months ended October 31, 2024, respectively.
(4) For the periods in which we had non-GAAP net income, the non-GAAP weighted-average shares used in computing non-GAAP net income per share attributable to Snowflake Inc. common stockholders—diluted included (a) the effect of all potentially dilutive common stock equivalents (stock options, restricted stock units, and employee stock purchase rights under our 2020 Employee Stock Purchase Plan) and (b) the potential dilutive effect of shares issuable upon conversion of the Notes using the if-converted method, starting from the beginning of the period or the issuance date of the Notes, if later. The potential dilutive effect of outstanding restricted stock units with performance conditions not yet satisfied is included in the non-GAAP weighted-average number of diluted shares at forecasted attainment levels to the extent we believe it is probable that the performance conditions will be met.
(5) The amounts for the three and nine months ended October 31, 2025 do not include employee payroll taxes of $190.7 million and $485.2 million, respectively, and the amounts for the three and nine months ended October 31, 2024 do not include employee payroll taxes of $81.5 million and $359.6 million, respectively, related to net share settlement of employee restricted stock units, which were reflected as cash outflows for financing activities.