TLDR
- Snowflake rises on strong Q4 growth and surging demand for data and AI services.
- Product revenue jumps 30% as Snowflake posts its strongest customer gains.
- AI adoption accelerates with 9,100 users and major enterprise expansions.
- Massive $9.77B backlog boosts confidence in Snowflake’s long-term growth.
- Fiscal 2027 outlook shows 27% growth as Snowflake deepens AI-driven strategy.
Snowflake (SNOW) shares closed higher after posting strong fourth-quarter results that highlighted steady product revenue gains and broader platform adoption. The stock ended the session at $169.21, up 5.06%, before easing slightly in after-hours trading. The company strengthened its position as demand for its data and AI services continued to expand.
Q4 Revenue Growth Strengthens Core Operations
Snowflake reported fourth-quarter revenue of $1.28 billion, and product revenue reached $1.23 billion with a 30% yearly increase. The quarter continued to show rising customer activity across workloads, and engagement improved across enterprise accounts. The company also delivered a net revenue retention rate of 125%, which reflected deeper adoption across existing users.
The company added 740 net new customers as platform usage increased across multiple sectors. This marked Snowflake’s strongest customer acquisition quarter and supported future consumption growth. Moreover, 733 customers exceeded $1 million in trailing product revenue, showing broad traction in large accounts.
Remaining performance obligations reached $9.77 billion and rose 42% from last year. This backlog reflected strong multiyear commitments and growing platform dependence. Furthermore, the company continued to expand its reach across the Forbes Global 2000 group.
AI Expansion Drives Broader Platform Activity
Snowflake advanced its AI roadmap as more than 9,100 accounts used its AI features during the quarter. Adoption accelerated as customers expanded workloads and increased reliance on Snowflake Intelligence. Additionally, almost 2,500 accounts began using new AI capabilities within three months.
Major enterprises such as Toyota Motor Europe and United Rentals expanded their use of Snowflake AI tools. These expansions strengthened platform stickiness and reinforced Snowflake’s strategy focused on advanced analytics. Strong AI adoption also contributed to growing usage of compute and data services.
The company introduced more than 430 features during fiscal 2026 to support evolving user needs. New products included Cortex Code and enhanced tools for data system integration. Snowflake also expanded partnerships with Anthropic, Google Cloud, and OpenAI to improve access to foundation models.
Full-Year Results and Fiscal 2027 Outlook
Full-year product revenue reached $4.47 billion with 29% yearly growth. Snowflake reported GAAP operating losses but maintained positive non-GAAP operating income. The company also delivered higher operating cash flow as adoption broadened.
Snowflake expects fiscal 2027 product revenue of $5.66 billion, reflecting projected growth of 27%. Guidance includes a strong non-GAAP gross margin and a moderate operating margin. The company aims to maintain disciplined execution to support long-term expansion.
Acquisitions including Observe and TensorStax also strengthened Snowflake’s capabilities. These deals extended the company into observability and AI-driven engineering markets. Snowflake positioned these additions to support platform growth and operational efficiency.
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