Snowflake Reports Strong Q2 FY26 Financial Results

Revenue Growth:: Snowflake's total revenue reached $1.1 billion, a 32% increase year-over-year. Product revenue specifically hit $1.09 billion, also up by 32% year-over-year.

Customer Retention:: The net revenue retention rate stood at 125% as of July 31, 2025, indicating strong customer loyalty and expansion within existing accounts. *Why this matters: High retention rates are crucial for sustained growth and demonstrate customer satisfaction with Snowflake's platform.*

Customer Base Expansion:: Snowflake now boasts 654 customers with trailing 12-month product revenue exceeding $1 million, a 30% year-over-year increase. It also serves 751 Forbes Global 2000 customers, representing a 5% year-over-year growth.

Remaining Performance Obligations (RPO):: RPO reached $6.9 billion, a 33% year-over-year increase, signaling strong future revenue commitments. *Why this matters: A healthy RPO provides visibility into future financial performance and indicates continued demand for Snowflake's services.*

For the third quarter of fiscal 2026, Snowflake projects product revenue between $1.125 billion and $1.130 billion, representing a 25-26% year-over-year growth.

The company anticipates a full-year fiscal 2026 product revenue of $4.395 billion, a 27% increase year-over-year.

Snowflake's Q2 FY26 results demonstrate robust growth and strong customer retention in the data cloud market.

The company's focus on AI integration positions it well for future opportunities.

Investors should monitor Snowflake's ability to sustain its growth rate amidst increasing competition.

Key metrics to watch include revenue growth, net revenue retention rate, and remaining performance obligations.