Snowflake Inc.
SNOWBusiness Overview
ticker: SNOW step: 01 generated: 2026-05-13 source: quick-research
Snowflake Inc. (SNOW) — Business Overview
Business Description
Snowflake is the AI Data Cloud — a cloud-native data platform that unifies data warehousing, data lakes, data engineering, data sharing, and AI/ML into a single governed environment running on AWS, Azure, and GCP. Rather than moving data to compute, Snowflake separates storage from compute to allow elastic scaling and multi-cloud operation. FY2026 (ended Jan 2026) product revenue reached $4.72B (+30% YoY), with remaining performance obligations of $9.77B (+42% YoY) signaling a deep forward pipeline.
Revenue Model
Consumption-based SaaS: customers buy credits and spend them on compute (queries, data pipelines, AI model inference). There is no per-seat licensing — revenue scales automatically with data volumes and query workloads. Professional services (~6% of revenue) complement the product. Land-and-expand: customers start with a data warehouse use case and expand to Cortex AI, Snowpark, Snowflake Intelligence, and the Marketplace. NRR of 125% reflects organic consumption growth from existing customers.
Products & Services
- Data Cloud / Data Warehouse — core OLAP analytics, multi-cloud, separated storage and compute
- Cortex AI — in-platform AI/ML suite: Document AI, CoPilot, Cortex Analyst, Cortex Guard
- Snowflake Arctic — proprietary enterprise-grade LLM built on the Snowflake platform
- Snowflake Intelligence — AI agent framework for natural-language data interaction (2,500 accounts in first 3 months)
- Snowpark — developer framework for Python, Java, Scala workloads inside Snowflake
- Notebooks — unified Python + SQL + Markdown development environment
- Openflow — multi-modal data integration for unstructured/structured data pipelines
- Marketplace — data sharing ecosystem with 3,000+ live datasets from third-party providers
- Gen 2 Standard Warehouses — 1.9x performance improvement vs. prior generation (launched May 2025)
Customer Base & Go-to-Market
9,900+ customers; 510+ with $1M+ trailing 12-month product revenue. Over 9,100 customers actively use AI/ML features. 740 net new customers added in Q4 FY2026. NRR of 125% — existing customers spend 25% more YoY. Direct enterprise sales supplemented by AWS Marketplace, Azure Marketplace, and Google Cloud Marketplace channels. Strategic partnerships with Anthropic (AI model integration), SAP (data collaboration), and ServiceNow.
Competitive Position
Snowflake competes against Databricks (private; closest technical rival), AWS Redshift, Google BigQuery, and Microsoft Fabric/Synapse. Snowflake's differentiation: true multi-cloud (data shared across AWS/Azure/GCP without copying), zero-copy data sharing via Marketplace, Cortex AI inference running natively inside the data warehouse (no ETL to external AI APIs), and the Snowflake Intelligence agent layer. The consumption model creates a growth flywheel — more AI workloads generate more queries, which generate more revenue automatically.
Key Facts
- Founded: 2012
- Headquarters: San Mateo, California
- Employees: ~7,000
- Exchange: NYSE
- Sector / Industry: Technology / Data Cloud & Analytics
- Market Cap: ~$50–55B (at ~$155–170/share)
Financial Snapshot
ticker: SNOW step: 04 generated: 2026-05-13 source: quick-research
Snowflake Inc. (SNOW) — Financial Snapshot
Note: Snowflake's fiscal year ends January 31. FY2024 = Feb 2023 – Jan 2024.
Income Statement Summary
| Metric | FY2023 | FY2024 | FY2025 | YoY |
|---|---|---|---|---|
| Revenue | $2.07B | $2.81B | $3.63B | +29% |
| Product Revenue | ~$1.94B | ~$2.67B | ~$3.44B | +29% |
| Non-GAAP Gross Margin | ~66% | ~68% | ~69% | |
| GAAP Net Income | ~-$0.8B | ~-$0.8B | ~-$1.0B | (SBC-driven) |
| Non-GAAP Operating Margin | ~5% | ~8% | ~10% | improving |
FY2026 (ended Jan 2026): Product revenue $4.72B (+30% YoY); Q4 FY2026 product revenue $1.23B (+30% YoY). RPO $9.77B (+42% YoY). NRR 125%. Snowflake Intelligence reached 2,500 accounts in first 3 months — fastest product ramp in company history. 9,100+ customers using AI features.
Cash Flow & Balance Sheet (FY2024)
| Metric | Value |
|---|---|
| Operating Cash Flow | $1.22B (43% of revenue) |
| Free Cash Flow | $1.12B (40% of revenue) |
| Capital Expenditures | ~$100M |
| Cash & Equivalents | ~$3.7B |
| Total Debt | ~$2.3B (convertible notes) |
FCF margins are unusually high (~40%) relative to GAAP losses, because SBC (~30%+ of revenue) adds back to operating cash flow. Non-GAAP profitability is real but GAAP losses remain large. Net cash positive. FY2026 FCF margins likely ~20–25% after strategic acquisitions (Observe $596M, Crunchy Data $165M).
Key Ratios (approximate)
- P/E: ~85x (non-GAAP FY2027E) | EV/Sales: ~10–11x | FCF Yield: ~2%
- Revenue Growth (TTM): ~29–30% | Non-GAAP Operating Margin: ~10–12%
Growth Profile
Snowflake compounded from $2.07B (FY2023) to $4.72B product revenue (FY2026) — roughly doubling in 3 years — but growth decelerated from 69% (FY2023) to 29% (FY2025) to 30% (FY2026 re-acceleration). The re-acceleration in FY2026 (+30% after slowing) and 42% RPO growth are the key bull signals. Heavy SBC (~30% of revenue) keeps GAAP losses large, but the consumption model drives strong operating cash flow. AI product ramps (Cortex, Snowflake Intelligence) are the forward growth drivers.
Forward Estimates
- FY2027: Management guiding $5.66B product revenue (+27% YoY); Snowflake Intelligence + Cortex AI scaling
- RPO $9.77B: ~2x forward revenue — provides multi-year visibility
- NRR 125%: organic consumption growth from existing base
- Analyst median PT: ~$286 (+60–66% upside from ~$155–170); 85% Buy consensus (52 analysts)
- Strategic acquisitions: Observe ($596M, AI observability), Crunchy Data ($165M, PostgreSQL) adding capabilities
Deeper Financial Analysis
The fundamental tier adds 9 additional research dimensions for $SNOW.