Snowflake Reports Financial Results for the Third Quarter of Fiscal 2026

No-Headquarters/BOZEMAN, Mont.--( BUSINESS WIRE)--Snowflake (NYSE: SNOW), the AI Data Cloud company, today announced financial results for its third quarter of fiscal 2026, ended October 31, 2025.

Revenue for the quarter was $1.21 billion, representing 29% year-over-year growth. Product revenue for the quarter was $1.16 billion, representing 29% year-over-year growth. Net revenue retention rate was 125% as of October 31, 2025. The company now has 688 customers with trailing 12-month product revenue greater than $1 million and 766 Forbes Global 2000 customers, representing 29% and 4% year-over-year growth, respectively. Remaining performance obligations were $7.88 billion, representing 37% year-over-year growth. See the section titled “Key Business Metrics” for definitions of product revenue, net revenue retention rate, customers with trailing 12-month product revenue greater than $1 million, Forbes Global 2000 customers, and remaining performance obligations.

“Snowflake delivered another strong quarter, with product revenue of $1.16 billion, up 29% year-over-year, and remaining performance obligations totaling $7.88 billion, up 37% year-over-year,” said Sridhar Ramaswamy, CEO of Snowflake. “Snowflake is the cornerstone for our customers’ data and AI strategies, driving real business impact at scale. Snowflake Intelligence, our enterprise AI agent, saw the fastest adoption ramp in Snowflake history and is transforming how businesses interact with their data, delivering real-time, actionable intelligence. Combined with our strategic partnerships with the world’s leading AI model providers, clouds and application platforms, Snowflake is supercharging the entire data lifecycle with AI-driven capabilities.”

Third Quarter Fiscal 2026 GAAP and Non-GAAP Results:

The following table summarizes our financial results for the third quarter of fiscal 2026:

Third Quarter Fiscal 2026

GAAP Results

Third Quarter Fiscal 2026

Non-GAAP Results (1)

Amount

(millions)

Year/Year

Growth

Product revenue

$1,158.4

29%

Amount

(millions)

Margin

Amount

(millions)

Margin

Product gross profit

$837.6

72%

$879.2

76%

Operating income (loss)

($329.5)

(27%)

$131.3

11%

Net cash provided by operating activities

$137.5

11%

(2)

Free cash flow

$113.6

Adjusted free cash flow

$136.4

11%

(1) We report non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. See the section titled “Statement Regarding Use of Non-GAAP Financial Measures” for an explanation of non-GAAP financial measures, and the table titled “GAAP to Non-GAAP Reconciliations” for a reconciliation of GAAP to non-GAAP financial measures.

(2) Calculated as net cash provided by operating activities as a percentage of revenue.

Note: Fiscal year ends January 31. Numbers are rounded for presentation purposes.

Financial Outlook:

Our guidance includes GAAP and non-GAAP financial measures.

The following table summarizes our guidance for the fourth quarter of fiscal 2026:

Fourth Quarter Fiscal 2026

GAAP Guidance

Fourth Quarter Fiscal 2026

Non-GAAP Guidance (1)

Amount

(millions)

Year/Year

Growth

Product revenue

$1,195 - $1,200

27%

Margin

Operating income

Amount

(millions)

Weighted-average shares used in computing net income per share attributable to Snowflake Inc. common stockholders—diluted (2)

377

(2) The potential impact of future repurchases under our stock repurchase program is not reflected in our guidance for weighted-average shares used in computing net income per share attributable to Snowflake Inc. common stockholders—diluted due to the uncertainty regarding, and the potential variability of, the timing and amount of repurchases. Additionally, the dilutive effect of the shares issuable upon conversion of our 0% convertible senior notes due 2027 and 0% convertible senior notes due 2029 (the Notes) using the if-converted method, estimated at approximately 11 million shares for the fourth quarter of fiscal 2026 based on the current conversion price and net of the potential antidilutive impact of the capped call transactions entered into in connection with the Notes (the Capped Calls), is reflected in our guidance for weighted-average shares used in computing net income per share attributable to Snowflake Inc. common stockholders—diluted. Upon conversion of the Notes, we may choose to satisfy our conversion obligations by paying or delivering, as the case may be, cash, shares of our common stock, or a combination of both. The Capped Calls will have an antidilutive impact when the average stock price of our common stock in a given period is higher than their exercise price. The estimated antidilutive impact of the Capped Calls reflected in our guidance is based on the market price of our common stock as of October 31, 2025, and is subject to change with future stock price movements.

The following table summarizes our guidance for the full-year of fiscal 2026:

Full-Year Fiscal 2026

GAAP Guidance

Full-Year Fiscal 2026

Non-GAAP Guidance (1)

Amount

(millions)

Year/Year

Growth

Product revenue (2)

$4,446

28%

Margin

Product gross profit

75%

Operating income

Adjusted free cash flow

25%

Amount

(millions)

Weighted-average shares used in computing net income per share attributable to Snowflake Inc. common stockholders—diluted (3)

373

(2) The full-year fiscal 2026 product revenue guidance is based on the higher end of the fourth quarter fiscal 2026 guidance.

(3) The potential impact of future repurchases under our stock repurchase program is not reflected in our guidance for weighted-average shares used in computing net income per share attributable to Snowflake Inc. common stockholders—diluted due to the uncertainty regarding, and the potential variability of, the timing and amount of repurchases. Additionally, the dilutive effect of the shares issuable upon conversion of the Notes using the if-converted method, estimated at approximately 11 million shares for the full-year of fiscal 2026 based on the current conversion price and net of the potential antidilutive impact of the Capped Calls, is reflected in our guidance for weighted-average shares used in computing net income per share attributable to Snowflake Inc. common stockholders—diluted. Upon conversion of the Notes, we may choose to satisfy our conversion obligations by paying or delivering, as the case may be, cash, shares of our common stock or a combination of both. The Capped Calls will have an antidilutive impact when the average stock price of our common stock in a given period is higher than their exercise price. The estimated antidilutive impact of the Capped Calls reflected in our guidance is based on the market price of our common stock as of October 31, 2025, and is subject to change with future stock price movements.

A reconciliation of GAAP guidance measures to corresponding non-GAAP guidance measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, expenses that may be incurred in the future. Stock-based compensation-related charges, including employer payroll tax-related items on employee stock transactions, are impacted by the timing of employee stock transactions, the future fair market value of our common stock, and our future hiring and retention needs, all of which are difficult to predict and subject to constant change. These factors could be material to our results computed in accordance with GAAP. We have provided a reconciliation of GAAP to non-GAAP financial measures in the financial statement tables for our historical non-GAAP financial results included in this release. Our fiscal year ends January 31, and numbers are rounded for presentation purposes.

Conference Call Details

The conference call will begin at 3 p.m. Mountain Time on December 3, 2025. Investors and participants may attend the call by dialing (833) 470-1428 (Access code: 752353). For investors and participants outside the United States, see global dial-in numbers at https://www.netroadshow.com/events/global-numbers?confId=90709 (Access code: 752353).

The call will also be webcast live on the Snowflake Investor Relations website at https://investors.snowflake.com.

An audio replay of the conference call and webcast will be available two hours after its completion and will be accessible for 30 days on the Snowflake Investor Relations website.

Investor Presentation Details

An investor presentation providing additional information and analysis can be found at https://investors.snowflake.com.

Statement Regarding Use of Non‑GAAP Financial Measures

We report the following non-GAAP financial measures, which have not been prepared in accordance with generally accepted accounting principles in the United States (GAAP), in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.

We use these non-GAAP financial measures internally for financial and operational decision-making purposes and as a means to evaluate period-to-period comparisons. Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. Our presentation of non-GAAP financial measures may not be comparable to similar measures used by other companies. We encourage investors to carefully consider our results under GAAP, as well as our supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand our business. Please see the tables included at the end of this release for the reconciliation of GAAP to non-GAAP results.

Key Business Metrics

We monitor our key business metrics, including (i) free cash flow and (ii) the other metrics set forth below to help us evaluate our business and growth trends, establish budgets, measure the effectiveness of our sales and marketing efforts, and assess operational efficiencies. See the section titled “Statement Regarding Use of Non-GAAP Financial Measures” for the definition of free cash flow. The calculation of our key business metrics may differ from other similarly titled metrics used by other companies, securities analysts, or investors.

Use of Forward‑Looking Statements

This release and the accompanying oral presentation contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding our performance, including but not limited to statements in the section titled “Financial Outlook.” Words such as “guidance,” “outlook,” “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “plan,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” “shall,” and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Other than statements of historical fact, all statements contained in this release and accompanying oral presentation are forward-looking statements, including statements regarding (i) our future operating results, targets, or financial position; (ii) our business strategy, plans, opportunities, or priorities; (iii) the release, adoption, and use of our new or enhanced products, services, and technology offerings, including those that are under development or not generally available; (iv) market size and growth, trends, and competitive considerations; (v) our vision, strategy and expected benefits relating to artificial intelligence (AI), Snowpark, Snowflake Marketplace, the AI Data Cloud, and AI Data Clouds for specific industries or product categories, including the expected benefits and network effects of the AI Data Cloud; and (vi) the integration, interoperability, and availability of our products, services, and technology offerings with and on third-party products and platforms, including public cloud platforms.

The forward-looking statements contained in this release and the accompanying oral presentation are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause actual results or outcomes to be materially different from any future results or outcomes expressed or implied by the forward-looking statements. These risks, uncertainties, assumptions, and other factors include, but are not limited to, those related to our business and financial performance; general market and business conditions, downturns, or uncertainty, including higher inflation, tariffs and trade wars, extended federal government shutdowns, higher interest rates, fluctuations or volatility in capital markets or foreign currency exchange rates, and geopolitical instability; our ability to attract and retain customers that use our platform to support their end-to-end data lifecycle; the extent to which customers continue to optimize consumption; the impact of new or optimized product features and pricing strategies on consumption, including Iceberg tables and tiered storage pricing; unforeseen technical, operational, or business challenges impacting the timing, scope, or success of strategic partnerships; the extent to which customers continue to rationalize budgets and prioritize cash flow management, including through shortened contract durations; our ability to develop new products and services and enhance existing products and services; the extent to which customer adoption of new product capabilities results in durable consumption; the growth of successful native applications on the Snowflake Marketplace; our ability to respond rapidly to emerging technology trends, including the adoption and use of AI, and the extent to which our investments in new technologies are successful; our ability to execute on our business strategy, including our strategy across our product categories; our ability to increase and predict customer consumption of our platform, particularly in light of the impact of holidays on customer consumption patterns; our ability to compete effectively; our ability to increase our penetration into existing markets and enter and grow new markets, including highly-regulated markets such as financial services, healthcare, and the public sector; our ability to attract, recruit, and retain qualified personnel to support our operations and growth; the impact of cybersecurity threat activity directed at our customers and any resulting reputational or financial damage; our ability to manage growth; our ability to sublease or terminate certain of our office facility commitments and the impact of related asset impairment; the impact and timing of stock repurchases under our stock repurchase program; and our ability to meet the requirements of the Notes and the settlement timing and method for the Notes and the Capped Calls.

Further information on these and additional risks, uncertainties, assumptions, and other factors that could cause actual outcomes and results to differ materially from those included in or contemplated by the forward-looking statements contained in this release are included under the caption “Risk Factors” and elsewhere in our Form 10-Q for the fiscal quarter ended July 31, 2025 and other filings and reports we make with the Securities and Exchange Commission from time to time, including our Form 10-Q that will be filed for the fiscal quarter ended October 31, 2025.

Moreover, we operate in a very competitive and rapidly changing environment, and new risks may emerge from time to time. It is not possible to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor(s) may cause actual results or outcomes to differ materially from those contained in any forward-looking statements we may make. As a result of these risks, uncertainties, assumptions, and other factors, you should not rely on any forward-looking statements as predictions of future events. Forward-looking statements speak only as of the date the statements are made and are based on information available to us at the time those statements are made and/or management's good faith belief as of that time with respect to future events. Except as required by law, we undertake no obligation, and do not intend, to update these forward-looking statements, to review or confirm analysts’ expectations, or to provide interim reports or updates on the progress of the current financial quarter.

About Snowflake

Snowflake is the platform for the AI era, making it easy for enterprises to innovate faster and get more value from data. More than 12,600 customers around the globe, including hundreds of the world’s largest companies, use Snowflake’s AI Data Cloud to build, use and share data, applications and AI. With Snowflake, data and AI are transformative for everyone. Learn more at snowflake.com (NYSE: SNOW).

Source: Snowflake Inc.

Snowflake Inc.

Condensed Consolidated Statements of Operations

(in thousands, except per share data)

(unaudited)

Three Months Ended October 31,

Nine Months Ended October 31,

2025

2024

2025

2024

Revenue

1,212,909

942,094

3,399,952

2,639,626

Cost of revenue

390,873

320,894

1,111,474

881,489

Gross profit

822,036

621,200

2,288,478

1,758,137

Operating expenses:

Sales and marketing

550,364

437,962

1,510,875

1,239,409

Research and development

494,027

442,435

1,458,434

1,290,889

General and administrative

107,118

106,260

436,175

297,171

Total operating expenses

1,151,509

986,657

3,405,484

2,827,469

Operating loss

(329,473

)

(365,457

)

(1,117,006

)

(1,069,332

)

Interest income

45,481

48,655

148,111

152,699

Interest expense

(2,075

)

(689

)

(6,220

)

(689

)

Other expense, net

(1,854

)

(8,474

)

(34,897

)

(37,722

)

Loss before income taxes

(287,921

)

(325,965

)

(1,010,012

)

(955,044

)

Provision for income taxes

3,682

1,937

9,473

8,444

Net loss

(291,603

)

(327,902

)

(1,019,485

)

(963,488

)

Less: net income (loss) attributable to noncontrolling interest

2,354

(3,623

)

2,581

(5,322

)

Net loss attributable to Snowflake Inc.

(293,957

)

(324,279

)

(1,022,066

)

(958,166

)

Net loss per share attributable to Snowflake Inc. common stockholders—basic and diluted

(0.87

)

(0.98

)

(3.04

)

(2.88

)

Weighted-average shares used in computing net loss per share attributable to Snowflake Inc. common stockholders—basic and diluted

339,648

331,761

335,875

333,136

Snowflake Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

October 31, 2025

January 31, 2025

Assets

Current assets:

Cash and cash equivalents

1,941,657

2,628,798

Short-term investments

1,411,448

2,008,873

Accounts receivable, net

938,145

922,805

Deferred commissions, current

167,926

97,662

Prepaid expenses and other current assets

164,319

211,234

Total current assets

4,623,495

5,869,372

Long-term investments

1,041,474

656,476

Property and equipment, net

265,844

296,393

Operating lease right-of-use assets

254,641

359,439

Goodwill

1,174,960

1,056,559

Intangible assets, net

256,580

278,028

Deferred commissions, non-current

209,511

183,967

Other assets

403,686

333,704

Total assets

8,230,191

9,033,938

Liabilities and Stockholders’ Equity

Current liabilities:

Accounts payable

193,691

169,767

Accrued expenses and other current liabilities

725,793

515,454

Operating lease liabilities, current

40,208

35,923

Deferred revenue, current

2,423,622

2,580,039

Total current liabilities

3,383,314

3,301,183

Convertible senior notes, net

2,277,749

2,271,529

Operating lease liabilities, non-current

367,658

377,818

Deferred revenue, non-current

10,884

15,501

Other liabilities

57,653

61,264

Snowflake Inc. stockholders’ equity

2,132,933

2,999,929

Noncontrolling interest

—

6,714

Total liabilities and stockholders’ equity

8,230,191

9,033,938

Snowflake Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

Three Months Ended October 31,

Nine Months Ended October 31,

2025

2024

2025

2024

Cash flows from operating activities:

Net loss

(291,603

)

(327,902

)

(1,019,485

)

(963,488

)

Adjustments to reconcile net loss to net cash provided by operating activities:

Depreciation and amortization

57,878

47,046

161,519

132,378

Non-cash operating lease costs

15,764

14,802

49,762

42,370

Amortization of deferred commissions

36,458

23,249

95,412

68,835

Stock-based compensation, net of amounts capitalized

412,278

363,259

1,195,955

1,051,195

Net accretion of discounts on investments

(5,100

)

(9,097

)

(18,469

)

(33,869

)

Net realized and unrealized losses on strategic investments in equity securities

255

8,611

35,520

35,814

Amortization of debt issuance costs

2,075

689

6,220

689

Asset impairment related to office facility exit

—

108,715

—

Deferred income tax

—

(581

)

(3,445

)

(532

)

Non-cash restructuring charges (recoveries), net

(11,159

)

1,146

(11,159

)

1,146

Other

1,216

1,815

(2,273

)

3,733

Changes in operating assets and liabilities, net of effects of business combinations:

Accounts receivable

(288,676

)

(163,488

)

(12,625

)

328,704

Deferred commissions

(96,816

)

(26,031

)

(181,680

)

(62,785

)

Prepaid expenses and other assets

19,823

9,109

(2,515

)

42,456

Accounts payable

28,948

11,296

36,296

102,721

Accrued expenses and other liabilities

120,620

34,065

217,846

38,702

Operating lease liabilities

(15,990

)

(9,055

)

(42,387

)

(34,344

)

Deferred revenue

151,452

122,773

(172,419

)

(226,686

)

Net cash provided by operating activities

137,519

101,706

440,788

527,039

Cash flows from investing activities:

Purchases of property and equipment

(23,905

)

(13,440

)

(85,559

)

(35,002

)

Capitalized software development costs

—

(10,032

)

—

(23,428

)

Cash paid for business combinations, net of cash acquired

—

(8,219

)

(164,230

)

(17,125

)

Purchases of intangible assets

—

(1,311

)

—

Purchases of investments

(341,172

)

(1,014,243

)

(1,990,216

)

(2,288,985

)

Sales of investments

522

13,597

19,397

54,394

Maturities and redemptions of investments

612,794

765,195

2,114,923

2,276,653

Settlement of cash flow hedges

—

(749

)

Net cash provided by (used in) investing activities

248,239

(267,142

)

(106,996

)

(34,242

)

Cash flows from financing activities:

Proceeds from exercise of stock options

28,849

11,548

63,295

35,212

Proceeds from issuance of common stock under employee stock purchase plan

34,930

30,318

88,123

77,053

Taxes paid related to net share settlement of equity awards

(190,724

)

(81,493

)

(485,221

)

(359,607

)

Repurchases of common stock

(232,896

)

(1,016,004

)

(723,534

)

(1,932,333

)

Distributions to noncontrolling interest holders

(2,145

)

—

(2,145

)

—

Payments of deferred purchase consideration for business combinations

—

(600

)

—

Gross proceeds from issuance of convertible senior notes

—

2,300,000

—

2,300,000

Cash paid for issuance costs on convertible senior notes

—

(31,230

)

—

(31,230

)

Purchases of capped calls related to convertible senior notes

—

(195,500

)

—

(195,500

)

Net cash provided by (used in) financing activities

(361,986

)

1,017,639

(1,060,082

)

(106,405

)

Effect of exchange rate changes on cash, cash equivalents, and restricted cash

778

12,243

(1,131

)

Net increase (decrease) in cash, cash equivalents, and restricted cash

23,793

852,981

(714,047

)

385,261

Cash, cash equivalents, and restricted cash—beginning of period

1,960,838

1,313,257

2,698,678

1,780,977

Cash, cash equivalents, and restricted cash—end of period

1,984,631

2,166,238

1,984,631

2,166,238

Snowflake Inc.

GAAP to Non-GAAP Reconciliations

(in thousands, except per share data and percentages)

(unaudited)

Three Months Ended October 31,

Nine Months Ended October 31,

2025

2024

2025

2024

Amount

Amount as a % of Revenue

Amount

Amount as a % of Revenue

Amount

Amount as a % of Revenue

Amount

Amount as a % of Revenue

Revenue:

Product revenue

1,158,377

96%

900,282

96%

3,245,686

95%

2,519,119

95%

Professional services and other revenue

54,532

41,812

154,266

120,507

Revenue

1,212,909

100%

942,094

100%

3,399,952

100%

2,639,626

100%

Year-over-year growth

29%

28%

29%

30%

Cost of revenue:

GAAP cost of product revenue

320,810

263,622

908,402

718,861

Adjustments:

Stock-based compensation-related charges

(32,418)

(32,240)

(95,169)

(89,253)

Amortization of acquired intangibles

(14,193)

(10,325)

(39,480)

(30,808)

Restructuring recoveries (charges), net (1)

5,013

(7,678)

5,013

(7,678)

Non-GAAP cost of product revenue

279,212

213,379

778,766

591,122

GAAP cost of professional services and other revenue

70,063

57,272

203,072

162,628

Adjustments:

Stock-based compensation-related charges

(15,031)

(14,067)

(44,691)

(41,671)

Amortization of acquired intangibles

(1,663)

(4,934)

(4,952)

Non-GAAP cost of professional services and other revenue

53,369

41,542

153,447

116,005

GAAP cost of revenue

390,873

32%

320,894

34%

1,111,474

33%

881,489

33%

Adjustments:

Stock-based compensation-related charges

(47,449)

(46,307)

(139,860)

(130,924)

Amortization of acquired intangibles

(15,856)

(11,988)

(44,414)

(35,760)

Restructuring recoveries (charges), net (1)

5,013

(7,678)

5,013

(7,678)

Non-GAAP cost of revenue

332,581

27%

254,921

27%

932,213

27%

707,127

27%

Gross profit (loss):

GAAP product gross profit

837,567

636,660

2,337,284

1,800,258

Adjustments:

Stock-based compensation-related charges

32,418

32,240

95,169

89,253

Amortization of acquired intangibles

14,193

10,325

39,480

30,808

Restructuring charges (recoveries), net (1)

(5,013)

7,678

(5,013)

7,678

Non-GAAP product gross profit

879,165

686,903

2,466,920

1,927,997

GAAP professional services and other revenue gross loss

(15,531)

(15,460)

(48,806)

(42,121)

Adjustments:

Stock-based compensation-related charges

15,031

14,067

44,691

41,671

Amortization of acquired intangibles

1,663

4,934

4,952

Non-GAAP professional services and other revenue gross profit

1,163

270

819

4,502

GAAP gross profit

822,036

68%

621,200

66%

2,288,478

67%

1,758,137

67%

Adjustments:

Stock-based compensation-related charges

47,449

46,307

139,860

130,924

Amortization of acquired intangibles

15,856

11,988

44,414

35,760

Restructuring charges (recoveries), net (1)

(5,013)

7,678

(5,013)

7,678

Non-GAAP gross profit

880,328

73%

687,173

73%

2,467,739

73%

1,932,499

73%

Gross margin:

GAAP product gross margin

72%

71%

72%

71%

Adjustments:

Stock-based compensation-related charges as a % of product revenue

Amortization of acquired intangibles as a % of product revenue

Restructuring charges (recoveries), net as a % of product revenue

—%

Non-GAAP product gross margin

76%

77%

GAAP professional services and other revenue gross margin

(28%)

(37%)

(32%)

(35%)

Adjustments:

Stock-based compensation-related charges as a % of professional services and other revenue

27%

34%

30%

35%

Amortization of acquired intangibles as a % of professional services and other revenue

Non-GAAP professional services and other revenue gross margin

GAAP gross margin

68%

66%

67%

Adjustments:

Stock-based compensation-related charges as a % of revenue

Amortization of acquired intangibles as a % of revenue

Restructuring charges (recoveries), net as a % of revenue

—%

Non-GAAP gross margin

73%

Operating expenses:

GAAP sales and marketing expense

550,364

45%

437,962

47%

1,510,875

44%

1,239,409

47%

Adjustments:

Stock-based compensation-related charges

(110,629)

(89,450)

(304,068)

(253,811)

Amortization of acquired intangibles

(10,164)

(7,906)

(27,250)

(23,337)

Non-GAAP sales and marketing expense

429,571

36%

340,606

36%

1,179,557

35%

962,261

36%

GAAP research and development expense

494,027

41%

442,435

47%

1,458,434

43%

1,290,889

49%

Adjustments:

Stock-based compensation-related charges

(242,789)

(204,139)

(715,890)

(617,915)

Amortization of acquired intangibles

(2,723)

(3,680)

(8,091)

(10,959)

Restructuring recoveries (charges), net (1)

6,026

(9,863)

6,034

(9,863)

Non-GAAP research and development expense

254,541

21%

224,753

24%

740,487

22%

652,152

25%

GAAP general and administrative expense

107,118

106,260

11%

436,175

13%

297,171

12%

Adjustments:

Stock-based compensation-related charges

(41,525)

(41,549)

(127,478)

(112,521)

Amortization of acquired intangibles

(124)

(451)

(1,004)

(1,343)

Expenses associated with acquisitions and strategic investments

(889)

(1,334)

(3,458)

(4,099)

Restructuring recoveries, net (1)

389

—

1,603

—

Asset impairment related to office facility exit, net of sublease income (2)

(66)

—

(108,686)

—

Non-GAAP general and administrative expense

64,903

62,926

197,152

179,208

GAAP total operating expenses

1,151,509

95%

986,657

105%

3,405,484

100%

2,827,469

108%

Adjustments:

Stock-based compensation-related charges

(394,943)

(335,138)

(1,147,436)

(984,247)

Amortization of acquired intangibles

(13,011)

(12,037)

(36,345)

(35,639)

Expenses associated with acquisitions and strategic investments

(889)

(1,334)

(3,458)

(4,099)

Restructuring recoveries (charges), net (1)

6,415

(9,863)

7,637

(9,863)

Asset impairment related to office facility exit, net of sublease income (2)

(66)

—

(108,686)

—

Non-GAAP total operating expenses

749,015

62%

628,285

67%

2,117,196

63%

1,793,621

68%

Operating income (loss):

GAAP operating loss

(329,473)

(27%)

(365,457)

(39%)

(1,117,006)

(33%)

(1,069,332)

(41%)

Adjustments:

Stock-based compensation-related charges (3)

442,392

381,445

1,287,296

1,115,171

Amortization of acquired intangibles

28,867

24,025

80,759

71,399

Expenses associated with acquisitions and strategic investments

889

1,334

3,458

4,099

Restructuring charges (recoveries), net (1)

(11,428)

17,541

(12,650)

17,541

Asset impairment related to office facility exit, net of sublease income (2)

—

108,686

—

Non-GAAP operating income

131,313

11%

58,888

350,543

10%

138,878

Operating margin:

GAAP operating margin

(27%)

(39%)

(33%)

(41%)

Adjustments:

Stock-based compensation-related charges as a % of revenue

37%

40%

38%

42%

Amortization of acquired intangibles as a % of revenue

Expenses associated with acquisitions and strategic investments as a % of revenue

—%

Restructuring charges (recoveries), net as a % of revenue

(1%)

—%

Asset impairment related to office facility exit, net of sublease income as a % of revenue

—%

Non-GAAP operating margin

11%

10%

Net income (loss):

GAAP net loss

(291,603)

(24%)

(327,902)

(35%)

(1,019,485)

(30%)

(963,488)

(37%)

Adjustments:

Stock-based compensation-related charges (3)

442,392

381,445

1,287,296

1,115,171

Amortization of acquired intangibles

28,867

24,025

80,759

71,399

Expenses associated with acquisitions and strategic investments

889

1,334

3,458

4,099

Restructuring charges (recoveries), net (1)

(11,428)

17,541

(12,650)

17,541

Asset impairment related to office facility exit, net of sublease income (2)

—

108,686

—

Amortization of debt issuance costs

2,075

689

6,220

689

Income tax effect related to the above adjustments and acquisitions

(39,999)

(23,820)

(106,467)

(57,558)

Non-GAAP net income

131,259

11%

73,312

347,817

10%

187,853

Net income (loss) attributable to Snowflake Inc.:

GAAP net loss attributable to Snowflake Inc.

(293,957)

(24%)

(324,279)

(34%)

(1,022,066)

(30%)

(958,166)

(36%)

Adjustments:

Stock-based compensation-related charges (3)

442,392

381,445

1,287,296

1,115,171

Amortization of acquired intangibles

28,867

24,025

80,759

71,399

Expenses associated with acquisitions and strategic investments

889

1,334

3,458

4,099

Restructuring charges (recoveries), net (1)

(11,428)

17,541

(12,650)

17,541

Asset impairment related to office facility exit, net of sublease income (2)

—

108,686

—

Amortization of debt issuance costs

2,075

689

6,220

689

Income tax effect related to the above adjustments and acquisitions

(39,999)

(23,820)

(106,467)

(57,558)

Adjustments attributable to noncontrolling interest, net of tax

2,278

(3,719)

2,521

(3,949)

Non-GAAP net income attributable to Snowflake Inc.

131,183

11%

73,216

347,757

10%

189,226

Net income (loss) per share attributable to Snowflake Inc. common stockholders—basic and diluted:

GAAP net loss per share attributable to Snowflake Inc. common stockholders—basic and diluted

(0.87)

(0.98)

(3.04)

(2.88)

Weighted-average shares used in computing GAAP net loss per share attributable to Snowflake Inc. common stockholders—basic and diluted

339,648

331,761

335,875

333,136

Non-GAAP net income per share attributable to Snowflake Inc. common stockholders—basic

0.39

0.22

1.03

0.57

Weighted-average shares used in computing non-GAAP net income per share attributable to Snowflake Inc. common stockholders—basic

339,648

331,761

335,875

333,136

Non-GAAP net income per share attributable to Snowflake Inc. common stockholders—diluted

0.35

0.20

0.93

0.52

GAAP weighted-average shares used in computing GAAP net loss per share attributable to Snowflake Inc. common stockholders—basic and diluted

339,648

331,761

335,875

333,136

Add: Effect of potentially dilutive common stock equivalents

23,460

22,615

24,477

25,858

Add: Effect of convertible senior notes

14,603

7,777

14,603

2,611

Less: Effect of antidilutive impact of capped call transactions

(4,358)

—

(3,000)

—

Non-GAAP weighted-average shares used in computing non-GAAP net income per share attributable to Snowflake Inc. common stockholders—diluted (4)

373,353

362,153

371,955

361,605

Free cash flow and adjusted free cash flow:

GAAP net cash provided by operating activities

137,519

11%

101,706

11%

440,788

13%

527,039

20%

Adjustments:

Purchases of property and equipment

(23,905)

(13,440)

(85,559)

(35,002)

Capitalized software development costs

—

(10,032)

—

(23,428)

Non-GAAP free cash flow

113,614

78,234

355,229

10%

468,609

18%

Adjustments:

Net cash paid on payroll tax-related items on employee stock transactions (5)

22,810

8,563

55,229

49,830

Non-GAAP adjusted free cash flow

136,424

11%

86,797

410,458

12%

518,439

20%

Non-GAAP free cash flow margin

10%

18%

Non-GAAP adjusted free cash flow margin

11%

12%

20%

GAAP net cash provided by (used in) investing activities

248,239

(267,142)

(106,996)

(34,242)

GAAP net cash provided by (used in) financing activities

(361,986)

1,017,639

(1,060,082)

(106,405)

(1) Restructuring charges net of recoveries represent certain costs incurred by us in connection with a restructuring plan for a majority-owned subsidiary, net of associated income and recoveries.

(2) Asset impairment related to office facility exit, net of sublease income primarily relates to our San Mateo office facility, which we ceased using during the three months ended April 30, 2025.

(3) Stock-based compensation-related charges included employer payroll tax-related expenses on employee stock transactions of approximately $19.6 million and $61.2 million for the three and nine months ended October 31, 2025, respectively, and $9.3 million and $40.8 million for the three and nine months ended October 31, 2024, respectively.

(4) For the periods in which we had non-GAAP net income, the non-GAAP weighted-average shares used in computing non-GAAP net income per share attributable to Snowflake Inc. common stockholders—diluted included (a) the effect of all potentially dilutive common stock equivalents (stock options, restricted stock units, and employee stock purchase rights under our 2020 Employee Stock Purchase Plan) and (b) the potential dilutive effect of shares issuable upon conversion of the Notes using the if-converted method, starting from the beginning of the period or the issuance date of the Notes, if later. The potential dilutive effect of outstanding restricted stock units with performance conditions not yet satisfied is included in the non-GAAP weighted-average number of diluted shares at forecasted attainment levels to the extent we believe it is probable that the performance conditions will be met.

(5) The amounts for the three and nine months ended October 31, 2025 do not include employee payroll taxes of $190.7 million and $485.2 million, respectively, and the amounts for the three and nine months ended October 31, 2024 do not include employee payroll taxes of $81.5 million and $359.6 million, respectively, related to net share settlement of employee restricted stock units, which were reflected as cash outflows for financing activities.