Snowflake Inc. Q3 FY2026 earnings call

Snowflake Inc. is at the center of the AI revolution. Product revenue grew 29% YoY in Q3. AI revenue run rate reached $100,000,000 earlier than anticipated. Snowflake Intelligence has the fastest ramp in product adoption with 1,200 customers using it. Partnerships with Workday, Splunk, Palantir, UiPath, SAP, and Anthropic were announced. Acquired Datometry and SelectStar to enhance products. Global system integrators like Accenture are collaborating. Over 40,000 customers, partners, and prospects joined Snowflake's annual world tour.

Product revenue in Q3 was $1,160,000,000, up 29% year over year. Remaining performance obligations totaled $7,880,000,000 with year-over-year growth accelerating to 37%. Our net revenue retention remained stable at a very healthy 125%, and we added a record 615 new customers this quarter.

For Q4, product revenue expected between $1,195,000,000 and $1,200,000,000, up 27% YoY. Raised FY 2026 product revenue guidance to approximately $4,446,000,000, up 28% YoY. Reiterated non-GAAP product gross margin of 75%, non-GAAP operating margin of 9%, and non-GAAP adjusted free cash flow margin of 25%.

Natural variability in consumption business. Impact of large cloud service provider outages on revenue. Lumpy nature of migrations.

Q: Sanjit Singh asked about financial growth rates and AI product usage.

A: Brian Robbins discussed financial performance and Sridhar Ramaswamy talked about AI product use cases like Snowflake Intelligence.

Q: Kirk Materne asked about go-to-market and product adoption.

A: Sridhar Ramaswamy spoke about AI helping in customer acquisition and product breadth.

Q: Brent Thill asked about go-lives and partnership impact.

A: Sridhar Ramaswamy and Brian Robbins discussed go-live trajectory and partnership contribution.

Q: Brad Zelnick asked about migrations and operating margins.

A: Sridhar Ramaswamy talked about migrations and Brian Robbins on operating margin guidance.

Q: Raimo Lenschow asked about zero copy agreements.

A: Sridhar Ramaswamy explained zero copy agreements benefit customers.

Q: Mark Murphy asked about AI tying to Snowflake investments.

A: Sridhar Ramaswamy spoke about AI driving Snowflake adoption.

Q: Kash Rangan asked about AI acceleration and market standardization.

A: Sridhar Ramaswamy talked about Snowflake platform enabling AI and market trends.

Q: Alex Zukin asked about bookings and consumption patterns.

A: Sridhar Ramaswamy and Brian Robbins discussed booking cycles and consumption impact.

Q: Patrick Colville asked about next AI milestone and $100M inclusion.

A: Sridhar Ramaswamy spoke about AI suite and next milestones.

Q: Brad Reback asked about balancing growth and margin.

A: Sridhar Ramaswamy and Brian Robbins talked about investment and margin expansion.

Q: Mike Cikos asked about revenue upside and guidance philosophy.

A: Sridhar Ramaswamy and Brian Robbins discussed revenue variability and guidance approach.

Q: Matt Hedberg asked about AI growth rate and OLTP/OLAP balance.

A: Sridhar Ramaswamy spoke about AI growth and Postgres support.

Q: Tyler Radke asked about large deal structure and FY 2027.

A: Sridhar Ramaswamy and Brian Robbins talked about deal structure and FY 2027 guidance.