"Snowflake Inc. ( NYSE:SNOW) provides the data cloud infrastructure that AI applications depend on, but its path to profitability remains uncertain. The company reported Q3 2026 revenue of $1.21 billion, beating estimates of $1.18 billion with 29% year-over-year growth. Product revenue reached $1.16 billion, while the company maintained a strong 125% net revenue retention rate. CEO Sridhar Ramaswamy highlighted that Snowflake Intelligence, the company's AI capabilities platform, achieved the fastest adoption rate of any product launch in company history."
"The company now serves 688 customers generating over $1 million in annual revenue, with remaining performance obligations of $7.88 billion, up 37% year-over-year. The challenge: Snowflake posted an operating loss of $329.5 million in the quarter, and the stock has declined 20.1% year-to-date to $175.27. With a negative 31% profit margin and price-to-sales ratio of 14x, investors are paying a premium for a company still burning cash despite strong revenue growth."
Snowflake Inc. provides the data cloud infrastructure that AI applications depend on while its path to profitability remains uncertain. The company reported Q3 2026 revenue of $1.21 billion, beating estimates and reflecting 29% year-over-year growth, with product revenue of $1.16 billion and a 125% net revenue retention rate. CEO Sridhar Ramaswamy highlighted that Snowflake Intelligence achieved the fastest adoption rate of any product launch in company history. The company serves 688 customers with over $1 million in annual revenue and has $7.88 billion in remaining performance obligations, up 37% year-over-year. The company posted an operating loss of $329.5 million, a negative 31% profit margin, and a price-to-sales ratio of 14x, leaving investors paying a premium for a cash-burning but fast-growing business.
Read at 24/7 Wall St.
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