Snowflake(NYSE) SNOW

Snowflake Inc. helps businesses organize and analyze digital information. Companies use its tools to store data and run computer programs. This helps teams find and share important business insights.

What Can Snowflake Do?

• Compute Resources: Processing power used to analyze data or run computer applications; this category makes up the bulk of product revenue.
• Storage Services: Monthly storage for customer data based on the average terabytes used; accounts for part of product revenue.
• Data Transfer: Tools that move information between different digital regions and cloud providers; accounts for part of product revenue.
• Professional Services: Expert consulting and technical training for setting up and using the platform; accounted for 4% of revenue in the three months ended July 31, 2026.

Strategic Steps and Purchases

• Acquired Observe in February 2026 for $595.8 million to add observability tools, which help monitor how digital systems perform.
• Purchased Natoma in June 2026 for $128.3 million to expand platform capabilities for AI agents, or programs that perform tasks automatically.
• Amended a major agreement in April 2026 to commit $6.0 billion to cloud infrastructure through 2031.
• Increased the number of customers spending over $1 million annually to 828 by July 31, 2026.

A Different Kind of Cloud

The platform separates data storage from the computing power used to process it. This design allows companies to grow each resource independently based on their specific business needs.

Financial Facts and Figures

• Product revenue reached $1.49 billion for the three months ended July 31, 2026, up 37% year over year.
• Net revenue retention rate, measuring spending growth from existing customers, was 126% as of July 31, 2026.
• Non-GAAP free cash flow was $83.8 million for the three-month period ended July 31, 2026.
• Remaining performance obligations, which represent contracted future revenue, totaled $9.0 billion as of July 31, 2026.

Bottom Line

Snowflake has evolved from a data storage provider into a network that connects data and artificial intelligence. Its consumption-based model and focus on large enterprise customers support its role in modern corporate cloud strategies.