Description

Snowflake Is Becoming the Control Plane for Enterprise Data—But Can It Defend the Moat?

Snowflake Inc. reported its financial results for Q3 Fiscal Year 2026, showcasing continued robust performance with product revenue reaching $1.16 billion, a 29% increase year-over-year. The company added a record 615 new customers this quarter and maintained a healthy net revenue retention rate of 125%. A key highlight was the achievement of a $100 million AI revenue run rate, one quarter earlier than anticipated, indicating strong momentum and adoption of Snowflake’s AI-driven data cloud solutions. Positives from the earnings report include the rapid adoption and growth of Snowflake Intelligence, with 1,200 customers utilizing its advanced AI capabilities, and a strong go-to-market execution leading to significant bookings. The company also extended its capabilities through strategic acquisitions such as Datometry and Select Star, which are expected to simplify customer transitions from legacy systems and enhance data estate visibility.