Live: Snowflake (SNOW) Q3 Earnings Coverage

The data-warehousing platform has beaten estimates in seven of the last eight quarters, including a 29.6% surprise last quarter at $0.35 versus $0.27 expected. That beat fueled a 12% rally through early November. Quarterly EPS has climbed from $0.20 to $0.35 over three quarters, despite a 31.8% revenue growth rate decelerating from prior triple-digit expansion.

Prediction markets show 95.5% confidence in a beat. At 21.4x sales and a forward P/E of 158.7x, Snowflake’s valuation hinges on margin improvement—the company still posts a -33.5% profit margin. Any guidance miss could trigger sharp compression given the premium multiple and recent volatility that saw a 7% single-day drop November 21.

Snowflake’s conference call is starting now, you can register to listen in here.

We’ll post an update once the call finises with our thoughts, so leave this blog open and that update should post automatically once the call is finished. 

As a final note, if you enjoyed today’s live blog, make sure to subscribe to our AI Investor Podcast. It’s free, and in Friday’s episode we’ll go into more depth on Snowflake’s earnings.

The market has now had more than 30 mintues to digest Snowflake’s (NYSE: SNOW) earnings and Wall Street doesn’t seem happy. Here’s the main takeaways from today’s earnings with three positves and three negatives.

Pros:

• Last quarter’s earnings did solidly beat. The company delivered adjusted EPS of $.35 versus expectations of $.31. In addition, revenues of $1.21 billion solidly passed expectations. In addition, guidance game in above Wall Street’s expectations.
• Key metrics seem strong. RPO growth of 37% continues to outpace sales growth.
• Snowflake announced a $200 million partnership focused around delivering agentic AI to enterprises.

Cons:

• While guidance topped expectations, Snowflake was valued at nearly 16X next year’s forecasted revenue heading into earnings. At that premium of a valuation, investors were expecting more than ‘OK’ earnings.
• To that end, product revenue forecasts of 27% growth next quarter would represent a slowdown from this current quarter. A big reason for Snowflake’s outperformance this year has been accelerating revenue growth.
• Finally, high multiple stocks that begin selling after-hours often create ‘herding.’ It looks like Snowflake’s after-hours sell off may be reaching a bottom at about 8.5%.

The company has its earnings call at 5 p.m. ET. We’ll see if anything executives say can turn around negative after-hours sentiment.

Snowflake shares are now down nearly 8%. As we’ve noted in prior updates, there’s nothing especially ‘bad’ in these earnings. However, shares are selling off in large part due to Snowflake’s relative outperformance versus other software stocks.

One announcement from this quarter was an expanded relationship with Anthropic. Here’s the announcement from Anthropic on X:

We’re expanding our partnership with @Snowflake in a multi-year, $200 million agreement.

Claude is now available to more than 12,600 Snowflake customers, helping businesses to quickly and easily get accurate answers from their trusted enterprise data, while maintaining rigorous…

— Anthropic (@AnthropicAI) December 3, 2025

Critical Business Metrics

Here are some of the key business metrics to watch from Snowflake’s (NYSE: SNOW) Q3 earnings:

Remaining Performance Obligations (RPO): $7.88 billion, up 37% year-over-year, significantly outpacing product revenue growth of 29%. RPO represents contracted revenue not yet recognized.

Net Revenue Retention Rate (NRR): 125%, indicating customers expanded consumption by 25% annually.

Enterprise Customers: 688 customers generate over $1 million in trailing-twelve-month product revenue. Year-over-year growth undisclosed.

Total Customers: 12,600+. CEO Sridhar Ramaswamy highlighted “Snowflake Intelligence” as the fastest-adopting enterprise AI agent.

• Salesforce: Up 5.3% after issuing EPS that strongly beat Wall Street’s expectations
• UiPath: Up 15% after a strong revenue beat

Aside from Snowflake, its generally been a good night for software earnings.

Snowflake’s guidance for Q4 calls for $1.195 to $1.2 billion in product sales. Wall Street’s estimates of $1.236 billion. If we assume around $50 million in product sales next quarter, the company is likely slightly above Wall Street’s estimates.

It also implies 27% sales growth, which is down from this quarter’s 29% growth.

Once again, this guidance seems fine if not extraordinary, but with Snowflake shares up 70% year-to-date and the company having issued strong earnings momentum last quarter, a fine quarter is leading to selling pressure.

Here are the main figures for Snowflake’s Q3 earnigns you need to know:

SNOW | Snowflake Q3’26 Earnings Highlights:

• Adj. EPS: $0.35 (Est. $0.31) [✅]; UP +12% YoY
• Revenue: $1.21B (Est. $1.20B) [✅]; UP +29% YoY
• Adj. Gross Margin: 76% (Est. 75%) [✅]; UP +100 bps YoY
• Net Income: $0.13B (Est. $0.10B) [✅]; UP +79% YoY
• Free Cash Flow: $0.11B; UP +9% YoY

Outlook:

• Revenue: $1.195 – $1.200B ±5% (Est. $1.24B) [✅]
  • The guidance reflects continued strong demand for our AI Data Cloud services and the expected growth in product revenue driven by increased customer consumption.
  • We anticipate that our strategic partnerships with leading AI model providers will further enhance our market position and drive revenue growth.

Q3 Segment Performance:

• Product Revenue: $1.16B; UP +29% YoY
• Professional Services Revenue: $54.5M; UP +30% YoY

Other Key Q3 Metrics:

• Adj. Operating Income: $0.13B; UP +123% YoY
• Adj. Operating Expenses: $0.75B; UP +19% YoY
• R&D Expenses: $0.49B; UP +12% YoY
• Effective Tax Rate: 1.3% (vs. 0.6% YoY)
• Net Cash Provided by Operating Activities: $0.14B; UP +11% YoY

CEO Commentary:

• Sridhar Ramaswamy: “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. 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.”

Snowflake provided guidance of $4.5 billion in product evenue this year. That likely is enough to top Wall Street’s estimates of about $4.6 billion (the company guides for product revenue but also has some non-product revenues that will likely lead to ful years sales above this target).

Earnings seem fairly solid, but this may be an example of investors selling a company that’s run up significantly (up 70% year-to-date before earnings) while the rest of software stocks have struggled.

If you want to review Snowflake’s Q3 earnings deck, it can be found here.

The initial reaction to Snowflake’s earnings release isn’t positive, shares are down about 6% despite beating on revenue and EPS estimates from Wall Street.

Here are the main numberes Snowflake just reported for Q3

• Revenue: about 1.21 billion
• EPS (normalized): 0.35

Here’s what Wall Street was expecting:

• Revenue: about 1.18 billion dollars
• EPS (normalized): 0.31

Please note, live updates will continue posting as we analyze Snowflake’s earnings. Do not leave this blog. 

Snowflake (NYSE: SNOW) shares are up 2.7% in late trading today. While software (especially SaaS) stocks have generally struggled across 2025, Snowflake shares are up 70% year-to-date.

Snowflake shares jumped after the company’s last earnings as revenue continues accelerating. Another reason for optimism around Snowflake is their primary competitor Databricks keeps raising at higher valuations. The company is reportedly in talks to raise capital at a $134 billion valuation. That’s significantly higher than Snowflake’s current $90 billion market capitalization.

While the two companies compete, investor interest in data platforms is not zero-sum. A rising tide for the industry is helping raise the value of both firms.

Once again, we expect Snowflake to report earnings at 4:05 p.m. ET and will begin updating this live blog with news and analysis the moment the company’s earnings are released.

We expect Snowflake’s earnings to hit newswires at 4:05 p.m. ET. The minute they hit, we’ll begin updating this live blog with news and analysis.

In the mean time, if you’re looking for more investing ideas, make sure to check out 24/7 Wall St.’s AI Investor Podcast.

It’s absolutely free to subscribe and in each podcast we provide news and also investing ideas. We first recommended Snowflake on December 20th last year, and since then shares are up more than 60%.

In fact, our average recommendation on the podcast is now up 70% after launching little more than a year ago!

Once again – you can subscribe to the podcast or read more about it here.

I (Eric Bleeker) host the podcast and will also be updating today’s Snowflake live blog, so if you like the content inside this live blog you’ll want to tune in Friday when we release our next episode that will go more indepth on Snowflake’s earnings!