Snowflake Inc. announced strong financial results for its fourth quarter and full-year fiscal 2025, ended January 31, 2025, on February 26, 2025. For Q4 FY25, total revenue reached $986.8 million, a 27% year-over-year increase, with product revenue growing 28% to $943.3 million, surpassing analyst estimates. The net revenue retention rate was 126%, and remaining performance obligations stood at $6.9 billion, up 33% year-over-year.
For the full fiscal year 2025, product revenue was $3,462.4 million, representing 30% year-over-year growth. Non-GAAP operating income for the full year was $231.7 million, achieving a 6% margin, and adjusted free cash flow was $941.5 million, or 26% of revenue. These results underscore Snowflake's strong market position and operational effectiveness.
Looking ahead, Snowflake provided guidance for fiscal year 2026, projecting product revenue of $4.28 billion, representing 24% year-over-year growth. The company anticipates a non-GAAP operating margin of 8% and a non-GAAP adjusted free cash flow margin of 25%. For the first quarter of fiscal 2026, product revenue is expected to be between $955 million and $960 million, indicating continued growth.
In a significant strategic development, Snowflake announced an expanded partnership with Microsoft. This collaboration integrates Microsoft Azure OpenAI Service into Snowflake Cortex AI, making OpenAI’s state-of-the-art models available directly within Snowflake on Microsoft Azure regions. This enables enterprises to build AI-powered applications and data agents within Snowflake’s secure AI Data Cloud, enhancing multimodal and conversational AI use cases.
Furthermore, Snowflake is partnering with Microsoft to make Snowflake Cortex Agents available in Microsoft 365 Copilot and Microsoft Teams, with general availability expected in June 2025. This integration will allow users to interact with their Snowflake data using natural language directly within Microsoft applications, streamlining insights and improving productivity. This deepens Snowflake's reach into enterprise workflows.
The company also announced that Chief Financial Officer Michael Scarpelli will retire, remaining in his role until a successor is found. This executive transition marks a change in leadership, though the company's strategic direction remains focused on AI and data cloud expansion.
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