Abstract
Snowflake will report fiscal second-quarter results on September 02, 2026 Post-Mkt; this preview summarizes consensus expectations for revenue, margins and adjusted EPS, and reviews recent performance drivers and potential risks.
Market Forecast
Consensus points to current-quarter revenue of 1.48 billion US dollars with a year-over-year increase of 36.20%, adjusted EPS around 0.45 with a 68.02% year-over-year increase, and EBIT of 0.19 billion US dollars with a 114.13% year-over-year increase; company-level gross margin typically trends in the mid-60% area, while the net profit margin still reflects reinvestment and SBC drag. The product business remains the core revenue engine with continued expansion in large enterprise consumption, while professional services remains a small mix; Snowflake’s AI and data-application workload adoption is expected to be the fastest-growing driver.
Last Quarter Review
Snowflake delivered last quarter revenue of 1.39 billion US dollars, a gross profit margin of 66.61%, GAAP net loss attributable to shareholders of 296.00 million US dollars with a net profit margin of -21.25%, and adjusted EPS of 0.39 with a 62.50% year-over-year increase. Product revenue reached 1.33 billion US dollars and professional services and other contributed 56.62 million US dollars, supported by resilient customer consumption and expansion among large accounts.
One notable highlight was better-than-expected EBIT of 0.17 billion US dollars, aided by operating discipline and scale benefits. The main business highlight was product revenue of 1.33 billion US dollars, with robust year-over-year growth and continued momentum in enterprise consumption, while professional services and other revenue was 56.62 million US dollars.
Current Quarter Outlook
Main business momentum and margin trajectory
Snowflake’s product-consumption model implies that revenue growth is driven by customer usage rather than seat licenses, and current-quarter guidance suggests continued expansion from large enterprise cohorts. The gross margin profile around the mid-60% range is consistent with scale efficiencies in cloud procurement and platform optimization, and any incremental mix shift toward higher-margin data sharing and application workloads could support upside. Operating margin is poised to benefit from measured hiring and prioritization of R&D and go-to-market around GenAI use cases, though stock-based compensation keeps GAAP profitability negative, leaving the net margin below zero despite rising EBIT.
Most promising growth vector
AI-driven data applications and Snowflake’s Native App Framework appear to be the highest-growth vectors this quarter, evidenced by broadening developer adoption and customer pilots translating to higher product consumption. The company’s focus on making model inference and feature engineering native to its platform encourages customers to consolidate workloads, which should lift both consumption and attach rates. For this quarter, investors will monitor whether AI-related workloads can drive incremental product revenue beyond the baseline, with a path to more diversified revenue as partner ecosystems mature.
Key stock-price sensitivity factors
Three items are likely to drive near-term stock moves: product revenue growth relative to guidance, the trajectory of remaining performance obligations and net revenue retention, and any updates to fiscal-year outlook that frame consumption trends into the December period. A sustained net revenue retention level above historical averages combined with healthy new logo adds would validate durable consumption growth into the second half. Conversely, commentary indicating macro-related workload moderation or slower ramp of AI workloads could weigh on sentiment, especially if free cash flow progress stalls relative to expectations.
Analyst Opinions
The majority of recent institutional commentary skews bullish, emphasizing accelerating product consumption and the potential uplift from AI-native workloads while acknowledging near-term GAAP losses from stock-based compensation. Notably, several large sell-side firms highlight upside risk to revenue relative to guidance if enterprise cohorts continue to expand usage, and they point to the improving operating discipline reflected in recent EBIT outperformance. The dominant view expects Snowflake to deliver revenue above 1.45 billion US dollars with adjusted EPS tracking at or slightly above 0.45, while remaining focused on the sustainability of mid-60% gross margins and improving operating leverage into the back half of the fiscal year.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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