Snowflake (SNOW) FY2026 Revenue Hits $1.28B as Product Revenue Rises 30% in Q4

Snowflake Inc. (NYSE:SNOW) is one of the best AI stocks to invest in according to billionaires. On February 25, Snowflake concluded its FY2026 with strong momentum, reporting Q4 revenue of $1.28 billion, which was a 30% increase year-over-year. Product revenue also grew 30% to $1.23 billion for the quarter. This was supported by an expansion of the customer base, including the addition of 740 net new customers, a 40% increase, and a net revenue retention rate of 125%. Remaining performance obligations surged by 42% to reach $9.77 billion, signaling future demand for its AI Data Cloud services.

Snowflake (SNOW) FY2026 Revenue Hits $1.28B as Product Revenue Rises 30% in Q4

Snowflake serves 790 of the Forbes Global 2000, with 733 customers now spending more than $1 million annually. Adoption of Snowflake’s AI features has reached over 9,100 accounts, supported by the introduction of more than 430 new capabilities, such as the Cortex Code AI coding agent. Strategic acquisitions of Observe and TensorStax have further integrated observability and AI-driven data engineering into the platform, while partnerships with Anthropic, Google Cloud, and OpenAI have broadened model availability for users.

For FY2027, Snowflake Inc. (NYSE:SNOW) expects product revenue to reach ~$5.66 billion, representing a 27% growth rate. The company is guiding for a non-GAAP product gross margin of 75% and an adjusted free cash flow margin of 23%. In the immediate term, FQ1 2027 product revenue is projected to be between $1.262 billion and $1.267 billion. Management continues to focus on the activation of agentic AI capabilities to maintain its position at the center of the enterprise AI revolution.

Snowflake Inc. (NYSE:SNOW) provides a cloud-based data platform for various organizations in the US and internationally. The company’s platform includes an AI Data Cloud, which enables customers to consolidate data into a single source of truth to drive meaningful business insights, build data applications, and share data and data products, as well as apply AI for solving business problems.

While we acknowledge the risk and potential of SNOW as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SNOW and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. Follow Insider Monkey on Google News.