SNOW Q4 2025 Earnings

Call Details

• Call Title: Snowflake Inc. Q4 2025 Earnings Call
• Date: February 26, 2025 at 10:00 PM UTC
• Management Team:
  • Sridhar Ramaswamy (Chief Executive Officer)
  • Mike Scarpelli (Chief Financial Officer)
  • Christian Kleinerman (Executive Vice President of Product)
  • Jimmy Sexton (Head of Investor Relations)

Call Summary

Financial Performance

• Q4 product revenue was $943M, representing 28% year-over-year growth.
• FY25 product revenue was $3.5B, representing 30% year-over-year growth.
• Remaining performance obligations were $6.9B, which grew 33% year-over-year.
• Net revenue retention for the period was 126%.
• FY25 non-GAAP product gross margin was 76% and FY25 non-GAAP operating margin was 6%.
• Q4 non-GAAP operating margin was 9%, and Q4 non-GAAP adjusted free cash flow margin was 43%.
• Snowpark contributed 3% of FY25 product revenue, and the company stated stable consumption patterns across the base.

Guidance

• Q1 product revenue guidance was $955M to $960M, representing 21% to 22% year-over-year growth.
• Q1 non-GAAP operating margin guidance was 5%, which includes approximately $15M of sales kickoff costs.
• FY26 product revenue guidance was approximately $4.28B, representing 24% year-over-year growth.
• FY26 non-GAAP product gross margin guidance was approximately 75% and non-GAAP operating margin guidance was 8%.
• FY26 non-GAAP adjusted free cash flow margin guidance was 25%.
• Snowflake expects new product features to contribute to a step-up in growth in the second half of FY26, but will not break out assumptions for specific features.
• Snowflake expects SBC as a percent of revenue to decline to approximately 37% in FY26 from 41% in FY25.