Snowflake Inc. Announces Strong Q3 Fiscal 2025 Results

Snowflake, Inc. ( (SNOW) ) has released its Q3 earnings. Here is a breakdown of the information Snowflake, Inc. presented to its investors.

Snowflake, Inc. is a cloud-based data platform company operating in the technology sector, renowned for its AI Data Cloud services that facilitate data sharing, application building, and AI integration for enterprises worldwide. In its third-quarter fiscal 2025 earnings release, Snowflake reported a robust 28% year-over-year revenue increase, reaching $942.1 million, while its product revenue grew by 29% to $900.3 million. Notably, the company achieved a net revenue retention rate of 127% and expanded its customer base to include 542 entities with over $1 million in annual product revenue.

The company highlighted several key financial metrics, including a strong remaining performance obligation of $5.7 billion, marking a 55% year-over-year growth. Additionally, Snowflake’s customer roster now boasts 754 Forbes Global 2000 companies, reflecting continued expansion among top-tier clients. Despite recording an operating loss on a GAAP basis, Snowflake reported a non-GAAP operating income of $58.9 million, demonstrating effective cost management and operational efficiency.

Snowflake’s financial results also showcased a solid gross margin of 76% on a non-GAAP basis, alongside a positive free cash flow of $78.2 million, indicating healthy cash generation capabilities. The company’s strategic focus on product cohesion and ease of use has been instrumental in driving its competitive edge and customer satisfaction.

Looking ahead, Snowflake’s management remains optimistic about its growth trajectory, projecting a continued upward trend in product revenue and maintaining a focus on enhancing its AI capabilities and expanding its market presence. The company’s robust performance and strategic initiatives position it well for future success in the competitive AI and data cloud landscape.