- Product Revenue Growth: Q4 revenue hit $1.23B (+30% YoY), driven by AI workloads and core business stability.
- RPO Expansion: Remaining Performance Obligations surged to $9.77B (+42% YoY), reflecting strong customer contract growth.
- Customer Acquisition & Retention: Net revenue retention remained at 125%, with 2,332 net new customers added in FY26.
- High-Spend Customer Growth: 733 customers spent >$1M (27% YoY growth), and 56 customers crossed $10M in T12M spend (56% YoY growth).
- Landmark Deal & Guidance: A $400M contract (largest in history) and FY27 revenue guidance of $5.66B (+27% YoY) underscore confidence in AI-driven growth.
Growth Drivers
The company's growth was driven by its expanding customer base, with 2,332 net new customers added during the year, and a record number of customers crossing the $10 million threshold in trailing 12-month spend. Snowflake's product acceleration and velocity were key factors in its growth, with the company launching over 430 product capabilities during the year. The company's AI-related products, including Cortex Code, were also a significant contributor to its growth, with Sridhar Ramaswamy emphasizing that AI-related products are driving the upside.
Valuation and Outlook
With a P/S Ratio of 12.64 and an EV/EBITDA of -46.43, the market is pricing in significant growth expectations for Snowflake. Analysts estimate next year's revenue growth at 26.9%, which is slightly lower than the company's historical growth rate. Given the company's strong track record and expanding product offerings, it remains to be seen whether Snowflake can continue to deliver on its growth promises. The company's guidance for FY '27, with product revenue expected to grow 27% year-over-year, suggests that it is confident in its ability to continue delivering strong growth.
Margin Profile
Brian Robins explained that the margin profile for new AI products is not as high as the core business, but they are offsetting that by finding efficiencies in the core business. The company's non-GAAP adjusted free cash flow margin is expected to be 23%, which includes an approximate 150 basis point headwind related to the Observe acquisition. The company's objective is to build great products, make them easy to use, and drive revenue, and it is working to achieve this while maintaining a healthy margin profile.