Q: What is Snowflake(SNOW) 2026Q3 Earnings Summary?
**Bullish Points:**
1. Revenue growth of 29% year-over-year for the quarter, reaching $1.2 billion, and a 31% increase for the nine months ended October 31, 2025, indicating strong top-line growth.
2. Improvement in gross margin to 68% for the quarter, up from 66% in the same period in 2024, reflecting better cost efficiency.
3. Reduction in net loss for the quarter to $291.6 million, compared to $327.9 million in the same period in 2024, showing progress toward profitability.
4. Operating loss decreased to $329.5 million for the quarter, compared to $365.5 million in the same period in 2024, indicating improved operational efficiency.
5. Net revenue retention rate of 125%, highlighting strong customer retention and expansion.
6. Significant growth in high-value customers, with 688 customers generating over $1 million in trailing 12-month product revenue, up from 534 customers in 2024.
7. Remaining performance obligations of $7.9 billion, with 48% expected to be recognized as revenue in the next 12 months, providing visibility into future revenue.
8. Strong liquidity position with $4.4 billion in cash, cash equivalents, and investments, supporting growth and operational needs.
**Bearish Points:**
1. Net loss for the nine months ended October 31, 2025, increased to $1.0 billion, compared to $963.5 million in 2024, indicating ongoing challenges in achieving profitability.
2. Operating expenses rose to $1.2 billion for the quarter, up from $986.7 million in the same period in 2024, driven by higher costs in sales, marketing, R&D, and administrative functions.
3. Interest income declined to $45.5 million for the quarter, down from $48.7 million in the same period in 2024, due to lower yields on cash equivalents and investments.
**Summary:**
Snowflake Inc. demonstrated strong revenue growth, improved gross margins, and a reduction in quarterly net and operating losses, signaling progress in its financial performance. The company also showed robust customer retention and expansion, with a growing number of high-value customers and substantial remaining performance obligations, providing a positive outlook for future revenue. However, the company continues to face challenges with high operating expenses and significant net losses, which may weigh on its path to profitability. Additionally, a decline in interest income reflects lower returns on cash and investments. Overall, while Snowflake's financial report highlights positive growth and operational improvements, the company must address its cost structure and profitability concerns to sustain long-term success.
For more information, you can read the original text of Snowflake(SNOW)'s financial report .
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
