Snowflake Reports 30% Revenue Growth as AI Demand Drives Q4 2026 Beat

Quick Facts

• Snowflake delivered Q4 2026 product revenue of $1.23 billion, up 30% year-over-year, beating analyst expectations
• AI accounts increased to more than 9,100, with Snowflake Intelligence scaling to over 2,500 accounts
• The company signed its largest deal in history at over $400 million in total contract value

Snowflake reported strong Q4 2026 results driven by growing AI demand, with total revenue reaching $1.28 billion, up 30% year-over-year. The data cloud company beat analyst expectations with earnings per share of $0.34, representing a 25.93% surprise.

Product revenue hit $1.23 billion for the quarter, while remaining performance obligations totaled $9.77 billion, up 42% year-over-year. The company maintained a net revenue retention rate of 125% and added 740 net new customers, representing 40% year-over-year growth.

CEO Sridhar Ramaswamy said the company is “rapidly transforming from the platform for governing and analyzing data into the platform where customers build and run AI-native applications and workflows.” He added that Snowflake “sits at the center of the enterprise AI revolution.”

The AI business showed strong momentum with more than 9,100 AI accounts, while Snowflake Intelligence scaled to over 2,500 customers. The company reported that AI is “no longer just narrative” but is “driving measurable consumption.”

Internal productivity gains include service delivery teams completing customer projects up to 5 times faster and improving response accuracy by more than 25%. Implementation cycles compressed from days to hours, driving 40%-50% higher project margins.

Snowflake now serves 790 of the Forbes Global 2000 customers and counts 733 customers with trailing 12-month product revenue greater than $1 million, up 27% year-over-year. The company introduced 430 new capabilities in fiscal 2026.

For Q1 FY27, Snowflake guided product revenue between $1.262 and $1.267 billion, representing 27% year-over-year growth. Full-year FY27 product revenue guidance stands at approximately $5.66 billion, also up 27%.

Following the earnings announcement, Snowflake’s stock rose 5.06% in aftermarket trading to $161.31. Analysts maintain a consensus “Strong Buy” rating with an average price target of $268.77.

Read more: Growing AI demand drives solid Snowflake earnings and revenue beat