"Snowflake ( NYSE: SNOW) heads into its Q3 FY2026 earnings with momentum back on its side. Product revenue grew 32 percent year over year in Q2, an acceleration from the prior quarter, while remaining performance obligations climbed 33 percent and net revenue retention held at a healthy 125 percent. Management highlighted broad based strength in core analytics, a growing pipeline of cloud migrations and accelerating demand for AI use cases on the Snowflake AI Data Cloud."
"Current quarter: Q3 FY2026 (Oct 2025) Revenue: about 1.18 billion dollars EPS (normalized): 0.31 Year ago revenue: roughly $942 million, implying about 26 percent revenue growth Year ago EPS: 0.20 Full year and next year FY2026 revenue: 4.68 billion dollars FY2026 EPS: 1.19 FY2027 revenue: 5.71 billion dollars FY2027 EPS: 1.64 These numbers imply mid to high twenties revenue growth through FY2026 with EPS growing faster than sales as"
"AI monetization and Snowflake Intelligence uptake- On the Q2 call management said AI influenced nearly half of new logo wins and that about 25 percent of deployed use cases already involve Snowflake AI, with more than 6,100 accounts using AI features weekly. Investors will want evidence that this usage is translating into visibly higher consumption, particularly for Cortex AI, Snowflake Intelligence and Gen2 warehouses, not just experimentation."
Snowflake reported accelerating product revenue growth (32% year over year in Q2), remaining performance obligations up 33%, and net revenue retention at 125%. Current-quarter revenue consensus is about $1.18 billion with normalized EPS of $0.31, while FY2026 revenue and EPS are projected at $4.68 billion and $1.19, respectively, and FY2027 revenue and EPS at $5.71 billion and $1.64. Management notes rising demand for AI use cases, growing pipeline of cloud migrations, and strong core analytics. Investors will watch AI monetization, Cortex and Gen2 consumption, new workload migrations, and consumption durability as key drivers of near-term results.
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