AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 2/6 · 18/10/2026
Moat—
Insufficient evidence for every rubric criterion; no category score is inferred.
structural advantage · — · Contractual commitments and repeat demand are demonstrated, but persistent switching barriers or participation-driven network advantages are not. Historical procurement savings lack competitor comparison.
durability · — · Contract-term protection does not establish enduring advantage. Reduced lock-in and dependence on continuing innovation leave structural durability unresolved.
customer dependency · — · Expansion and existing-customer revenue demonstrate repeat demand, but neither measures how difficult replacing Snowflake would be.
erosion resilience · — · Expansion has continued despite spending optimization, but this does not establish resilience of an identified structural advantage against reduced lock-in and cloud competition.
Pricing power—
Insufficient evidence for every rubric criterion; no category score is inferred.
realized pricing · — · Growth is attributed to greater consumption. Disclosed discounting practices and margin outcomes do not isolate actual product price increases, reductions, or realized unit prices.
retention · 3/4 · Net revenue retention of 125% at January 2026 and 126% at April 2026, increasing large-customer counts, and substantial existing-customer revenue demonstrate strong repeat demand. Net retention includes expansion and zero-usage customers; it is not a gross renewal rate or proof of price acceptance.
margin resilience · 2/4 · For the six months ended July 2026, total gross margin remained 67%, while product gross margin declined from 72% to 71% and services losses worsened. This is mixed resilience, with pricing, mix, investment, and compensation effects not separately quantified.
contractual freedom · 2/4 · Non-cancelable capacity commitments and incremental consumption charges provide meaningful commercial protection. On-demand termination rights, rollover provisions, discretionary consumption, and observed shorter contracts constrain it. Unilateral repricing rights are not disclosed.
Predictability85
Five consecutive annual periods. Equal weights: nondeclining revenue frequency; revenue-growth volatility (5–40pp); positive FCF frequency; FCF-margin volatility (3–20pp). Stability indicator, not a growth forecast.
- Nondeclining revenue years (%)
- 100.00
- Revenue growth volatility (pp)
- 16.68
- Positive FCF years (%)
- 100.00
- FCF margin volatility (pp)
- 7.44
Financial strength—
Missing required inputs: debtFcfGrade, netDebtEbitGrade. Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, or reported pretax profit plus reported interest expense when operating income is unavailable. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- interestCoverageGrade
- 0.00
- currentRatioGrade
- 43.90
- Interest coverage (x)
- -172.95
- Current ratio (x)
- 1.30
Capital allocation—
Missing required inputs: operatingReturn. Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income or, if unavailable, EBIT calculated from reported pretax profit plus reported interest expense; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. Nonpositive invested capital has no defined return and remains unavailable. Does not establish acquisition quality or buyback timing.
- 3-year average dilution (%)
- 1.93
- 3-year average SBC / revenue (%)
- 38.85
- cashConversionGrade
- 0.00
Management56
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · Fiscal 2026 operating cash flow of $1.22 billion and disclosed free cash flow of $1.12 billion improved year over year. Against this, substantial repurchases coexisted with continuing large net losses and an increase in outstanding shares from 334.1 million in March 2025 to 345.7 million in March 2026. This supports mixed discipline; repurchase value creation and acquisition returns are unproven.
incentive alignment · 2/4 · Actual fiscal 2026 PRSU attainment was tied to revenue, non-GAAP operating margin, and adjusted free cash flow, with multiyear service vesting; hedging and pledging are prohibited. Alignment is tempered by only approximately 30% say-on-pay support and profitability measures excluding stock compensation. These are adopted arrangements and achieved awards, not inferred future vesting or ownership alignment.
execution · 3/4 · Two consecutive years of 29% revenue growth, continued existing-customer expansion, increasing large-customer counts, and higher operating cash generation demonstrate strong commercial execution. Attribution to management is indirect operating evidence; persistent net losses and unproven acquisition returns limit the conclusion.
governance · 2/4 · Elimination of Class B stock and the actually adopted August 2026 majority-vote standard improve accountability. Independent special-committee approval and a fairness opinion provide safeguards for the Observe acquisition. Classified-board and removal restrictions, together with weak say-on-pay support, leave a mixed record.
Evidence
As our customers experience the benefits of our platform, they typically expand their usage significantly, as evidenced by our net revenue retention rate, which was 125% as of January 31, 2026.
Business; net revenue retention as of January 31, 2026 · Filed 20/03/2026
Product revenue increased $337.5 million for the three months ended April 30, 2026, compared to the three months ended April 30, 2025, primarily due to increased consumption of our platform by existing customers, as evidenced by our net revenue retention rate of 126% as of April 30, 2026.
MD&A; existing-customer consumption and April 30, 2026 net revenue retention · Filed 29/05/2026
We had 779 customers with product revenue of greater than $1 million for the trailing 12 months ended April 30, 2026, an increase from 604 such customers as of April 30, 2025.
MD&A; customers exceeding $1 million in trailing product revenue · Filed 29/05/2026
Customer contracts are generally non-cancelable during the contract term, although customers can terminate for breach if the Company materially fails to perform.
Revenue recognition; capacity contract cancellation terms · Filed 20/03/2026
The substantial majority of our revenue was derived from existing customers under capacity arrangements, which represented approximately 97% and 98% of our revenue for the three months ended April 30, 2026 and 2025, respectively.
MD&A; revenue from existing customers under capacity arrangements · Filed 29/05/2026
In recent years, we have adopted open data formats like Apache Iceberg tables to allow customers to use our platform to process data stored in external customer-controlled environments outside of Snowflake, and we have introduced a significant number of new features and expanded into new product categories like AI and transactions.
Competition; open formats and external customer-controlled data · Filed 20/03/2026
These changes are driving increased competition, both because there is less customer “lock in” when our products are used in external environments, and also because we are competing across more product categories, each of which is subject to distinct customer requirements and preferences.
Competition; reduced lock-in and increased competition · Filed 20/03/2026
These conditions have caused, and may continue to cause, customers to rationalize budgets, prioritize cash flow management, including through shortened contract duration, and optimize consumption, including by reducing storage through shorter data retention policies.
MD&A; observed contract shortening and consumption optimization · Filed 20/03/2026
•large, well-established, public cloud providers that generally compete in all of our markets, including AWS, Azure, and GCP;
Competition; named public cloud competitors · Filed 20/03/2026
Our platform powers the AI Data Cloud, a network of data providers, data consumers, and data application developers that enables our customers to securely share, monetize, and acquire live data sets and data products.
Business; AI Data Cloud participants and data sharing · Filed 20/03/2026
The AI Data Cloud includes access to the Snowflake Marketplace, through which customers can access or acquire third-party data sets, data applications, and other data products.
Business; Snowflake Marketplace functionality · Filed 20/03/2026
A core component of our AI strategy includes incorporating third-party AI technologies, including frontier AI models (both proprietary and open-source), into our products and services.
Risk factors; incorporation of third-party AI technologies · Filed 04/09/2026
56 Table of Contents Cost of Revenue, Gross Profit (Loss), and Gross Margin Three Months Ended July 31, Six Months Ended July 31, 2026 2025 % Change 2026 2025 % Change (dollars in thousands) (dollars in thousands) Cost of revenue: Product $ 434,418 $ 302,316 44% $ 821,292 $ 587,592 40% Professional services and other 75,657 69,499 9% 153,283 133,009 15% Total cost of revenue $ 510,075 $ 371,815 37% $ 974,575 $ 720,601 35% Gross profit (loss): Product $ 1,057,443 $ 788,180 34% $ 2,004,898 $ 1,499,717 34% Professional services and other (20,725) (15,026) 38% (41,729) (33,275) 25% Total gross profit $ 1,036,718 $ 773,154 34% $ 1,963,169 $ 1,466,442 34% Gross margin: Product 71% 72% 71% 72% Professional services and other (38%) (28%) (37%) (33%) Total gross margin 67% 68% 67% 67% Headcount (at period end) Product 426 478 426 478 Professional services and other 801 711 801 711 Total headcount 1,227 1,189 1,227 1,189 Cost of product revenue increased $132.1 million and $233.7 million for the three and six months ended July 31, 2026, compared to the three and six months ended July 31, 2025, respectively.
MD&A; product and services gross margins for periods ended July 31, 2026 · Filed 04/09/2026
We expect our product gross margin to fluctuate from period to period due to a number of factors, including, but not limited to: (i) fluctuations in the mix and timing of customers’ consumption, which is inherently variable at our customers’ discretion, (ii) our pricing model and discounting practices, (iii) the extent of our investments in new product capabilities, features, and operations, such as investments in AI and performance improvements that may make our platform or the underlying cloud infrastructure more efficient, (iv) new product offerings that are margin compressive, and (v) stock-based compensation.
MD&A; pricing, discounting, product mix, and gross-margin sensitivity · Filed 04/09/2026
For those customers who do not have a capacity arrangement, the Company’s on-demand arrangements generally have a monthly stated contract term and can be terminated at any time by either the customer or the Company.
Revenue recognition; on-demand contract termination rights · Filed 20/03/2026
To the extent customers enter into such contracts and either consume the platform in excess of their capacity commitments or continue to use the platform after expiration of the contract term, they are charged for their incremental consumption.
Revenue recognition; charges for incremental consumption · Filed 20/03/2026
However, the amount and timing of revenue recognition are generally dependent upon customers’ future consumption, which is inherently variable at customers’ discretion and can extend beyond the original contract term in cases where customers are permitted to roll over unused capacity to future periods, generally on the purchase of additional capacity at renewal.
Revenue recognition; discretionary consumption and capacity rollover · Filed 04/09/2026
GAAP to Non-GAAP Reconciliation (in millions) Fiscal Year Ended January 31, 2026 2025 Free cash flow: GAAP net cash provided by operating activities $ 1,221.9 $ 959.8 Less: purchases of property and equipment (101.6) (46.3) Less: capitalized software development costs — (29.4) Non-GAAP free cash flow $ 1,120.3 $ 884.1 GAAP net cash provided by investing activities $ 312.2 $ 190.6 GAAP net cash used in financing activities $ (1,385.4) $ (226.5) A-1
Appendix A; fiscal 2026 and 2025 operating cash flow and free cash flow reconciliation · Filed 18/05/2026
The following table summarizes the stock repurchase activity under the Company’s stock repurchase program (in thousands, except per share data): Fiscal Year Ended January 31, 2026 2025 2024 Number of shares repurchased 4,925 14,765 4,012 Weighted-average price per share(1) $ 177.37 $ 130.87 $ 147.49 Aggregate purchase price(1) $ 873,471 $ 1,932,164 $ 591,673 ________________ (1)Excludes transaction costs and excise tax, if any, associated with the repurchases.
Equity note; fiscal 2024–2026 actual share repurchases · Filed 20/03/2026
Our net loss was $1.3 billion, $1.3 billion, and $838.0 million for the fiscal years ended January 31, 2026, 2025, and 2024, respectively.
Business; fiscal 2024–2026 net losses · Filed 20/03/2026
As of March 6, 2026, there were 345.7 million shares of the registrant’s common stock, par value of $0.0001 per share, outstanding.
Cover page; shares outstanding as of March 6, 2026 · Filed 20/03/2026
As of March 7, 2025, there were 334.1 million shares of the registrant’s Class A common stock, par value of $0.0001 per share, outstanding.
Cover page; shares outstanding as of March 7, 2025 · Filed 21/03/2025
At our 2025 Annual Meeting, we received support from approximately 30% of the votes cast for our Say-on-Pay vote.
Executive compensation; actual 2025 say-on-pay support · Filed 18/05/2026
Based on the weighted final achievement of the performance metrics, our Compensation Committee determined that the attainment of the PRSU awards for Fiscal Year 2026 was approximately 102.9% of the target number of shares for each of our named executive officers who received a PRSU award.
Executive compensation; achieved fiscal 2026 PRSU attainment · Filed 18/05/2026
The number of shares subject to the PRSU awards that became eligible to vest based on the achievement of the performance metrics (i.e., achieved PRSU awards) will vest over four years as follows: 25% of these PRSUs vested on March 8, 2026 and 6.25% of these PRSUs vest each quarter thereafter, subject to the named executive officer's continuous service through each applicable vesting date.
Executive compensation; fiscal 2026 achieved PRSU vesting schedule · Filed 18/05/2026
(2)As described in further detail under the section titled “Compensation Discussion and Analysis—Long-Term Equity Incentive Awards,” the PRSUs granted to our named executive officers (other than the CRO Revenue PRSUs) became eligible to vest based on our performance with respect to three metrics: annual total revenue (weighted at 50%), non-GAAP operating margin (weighted at 25%), and non-GAAP adjusted free cash flow (weighted at 25%), for the fiscal year ended January 31, 2026.
Executive compensation; fiscal 2026 PRSU performance metrics and weights · Filed 18/05/2026
*Non-GAAP operating margin is defined as operating margin calculated in accordance with GAAP, excluding the effect of (i) stock-based compensation-related charges, including employer payroll tax-related items on employee stock transactions, (ii) amortization of acquired intangibles, (iii) expenses associated with acquisitions and strategic investments, (iv) restructuring charges, net of associated income and recoveries, and (v) asset impairment related to office facility exit, net of associated sublease income, if any.
Executive compensation; exclusions from non-GAAP operating margin · Filed 18/05/2026
We do not allow hedging and pledging of Snowflake stock.
Executive compensation practices; prohibition on hedging and pledging · Filed 18/05/2026
For the fiscal years ended January 31, 2026, 2025, and 2024, our revenue was $4.7 billion, $3.6 billion, and $2.8 billion, respectively, representing year-over-year growth of 29% in each period.
Business; fiscal 2024–2026 revenue growth · Filed 20/03/2026
Common Stock On July 3, 2025, we filed an amended and restated certificate of incorporation with the Secretary of State of the State of Delaware effecting (i) the elimination of our Class B common stock, and (ii) the renaming of our Class A common stock to “common stock”.
Common stock; July 3, 2025 elimination of Class B common stock · Filed 20/03/2026
•establish that our board of directors is divided into three classes, with each class serving three-year staggered terms;
Governance risk factors; classified board · Filed 20/03/2026
•provide that our directors may only be removed for cause;
Governance risk factors; director removal restrictions · Filed 20/03/2026
On August 31, 2026, the Company’s board of directors (Board), upon the recommendation of the nominating and governance committee of the Board, approved and adopted an amendment and restatement of the Company’s bylaws (Amended and Restated Bylaws), effective as of such date, to:
Other information; August 31, 2026 adoption of amended bylaws · Filed 04/09/2026
•implement a majority vote standard for uncontested director elections under which a director nominee will be elected to the Board only if the votes cast “for” such nominee’s election exceed the votes cast “against” such nominee’s election, with “abstentions” and “broker non-votes” not counted as votes cast,” with the plurality vote standard continuing to apply to contested elections (as defined in the Amended and Restated Bylaws);
Other information; adopted majority vote standard for uncontested director elections · Filed 04/09/2026
The Observe Acquisition was approved by a special committee of our Board (Special Committee) consisting solely of independent and disinterested directors not affiliated with Observe, pursuant to authority delegated to it by our Board, as well as our Audit Committee.
Related-person transactions; independent special committee approval of Observe acquisition · Filed 18/05/2026
The Special Committee also obtained a fairness opinion regarding the Observe Acquisition from a third-party financial advisor engaged by the committee.
Related-person transactions; acquisition fairness opinion · Filed 18/05/2026
Our product gross margin was 74% for the fiscal year ended January 31, 2024, compared to 72% for the prior fiscal year, primarily due to (i) higher volume-based discounts for our purchases of third-party cloud infrastructure, and (ii) increased cost efficiency as a result of cloud infrastructure processor improvements.
MD&A; fiscal 2024 infrastructure discounts and efficiency improvements · Filed 26/03/2024
Although we rely on intellectual property rights, including patents, copyrights, trademarks, and trade secrets, as well as contractual protections to establish and protect our proprietary rights, we believe that factors such as the technological and creative skills of our personnel, creation of new services, features and functionality, and frequent enhancements to our platform are more essential to establishing and maintaining our technology leadership position.
Intellectual property; management's assessment of innovation versus legal protections · Filed 20/03/2026
We then calculate our net revenue retention rate as the quotient obtained by dividing our product revenue from this cohort in the second year of the measurement period by our product revenue from this cohort in the first year of the measurement period.
Key business metrics; net revenue retention calculation · Filed 04/09/2026
Any customer in the cohort that did not use our platform in the second year remains in the calculation and contributes zero product revenue in the second year.
Key business metrics; inclusion of customers with zero subsequent usage · Filed 04/09/2026
