Snowflake (SNOW) delivered strong financial results in Q4 Fiscal Year 2025, highlighted by robust growth across key metrics. In Q4, product revenue reached $943 million—a 28% year-over-year increase—with remaining performance obligations (RPO) climbing 33% to $6.9 billion. A net revenue retention rate of 126% underscored healthy customer expansion and retention, while non-GAAP operating and adjusted free cash flow margins stood at 9% and 43%, respectively.

Over the full fiscal year 2025, Snowflake maintained its momentum. Product revenue grew 30% year-over-year to $3.5 billion, supported by a steady non-GAAP product gross margin of 76% and a non-GAAP adjusted free cash flow margin of 26%. Notably, the new Snowpark offering contributed 3% of FY 2025 product revenues, highlighting the growing importance of innovative features. In addition, the company repurchased 14.8 million shares using $1.9 billion at an average share price of $130.87.

Looking ahead to fiscal year 2026, Snowflake remains optimistic about its growth trajectory. The company projects product revenue of approximately $4.28 billion for FY 2026—a 24% increase year-over-year—with Q1 product revenue expected to range between $955 million and $960 million (a 21% to 22% year-over-year increase). Guidance also calls for an expansion in non-GAAP operating margin to 8% and a non-GAAP adjusted free cash flow margin of 25%, while stable net revenue retention rates in the mid-120s further reinforce confidence in the core business.

Innovation continues to be a central driver for Snowflake. In FY 2025, the company launched over 400 new product capabilities—more than double the previous year’s count—while AI and machine learning features gained traction with over 4,000 customers engaging weekly. Key advancements include Cortex AI, Cortex Agents, Dynamic Tables, and an enhanced version of Snowpark, which collectively simplify complex data pipelines and empower customers to build sophisticated applications. Support for open data formats like Apache Iceberg further expands customer flexibility in managing and querying data at scale.

Strengthening its market position, Snowflake has bolstered strategic partnerships and integrations. An expanded collaboration with Microsoft now enables customers to access OpenAI’s models within Snowflake’s secure environment, while bidirectional integrations with enterprise software providers such as Salesforce and ServiceNow facilitate seamless data sharing and collaboration across ecosystems.

Customer success stories further illustrate the platform’s transformative impact. Organizations like AstraZeneca are leveraging Snowflake to unify research data and accelerate drug discovery, and State Street is using its AI capabilities to uncover market insights for improved investment decisions. Other notable clients—including ExxonMobil, Honeywell, and the London Stock Exchange Group—demonstrate Snowflake’s broad industry appeal and its ability to drive significant business outcomes.

Operational efficiency remains a key focus. By centralizing teams, targeting early career hiring, streamlining management layers, and implementing continuous performance management, Snowflake has improved its margins—evidenced by the strong Q4 non-GAAP operating margin—and laid the groundwork for sustained efficiency as it continues to invest in growth.

Amidst these developments, Snowflake is also managing a leadership transition. CFO Mike Scarpelli announced plans to retire once a successor is in place, praising the strong execution under CEO Sridhar Ramaswamy. This planned transition is expected to be smooth, ensuring continuity in leadership and strategic vision.

Together, these robust financial results, ongoing product innovations, strategic partnerships, and operational improvements position Snowflake well to capitalize on the growing demand for data and AI solutions in FY 2026 and beyond.