Snowflake (SNOW) filed an 8-K after the close on 2 September 2026 reporting fiscal Q2 2027 results (quarter ended 31 July 2026). Product revenue grew 37% to $1.49 billion, adjusted profit came in well ahead of expectations, and the company raised its full-year product revenue guidance — while one balance-sheet metric went the other way.

The numbers

• Product revenue: $1.49bn, up 37% YoY and up about 12% QoQ (from $1.33bn). This is the number Snowflake is judged on — it is consumption of the platform, not services.
• Total revenue: $1.55bn, up 35% YoY. Consensus was around $1.48bn — a beat.
• Non-GAAP diluted EPS: $0.62 vs the ~$0.45 expected — a sizeable beat. Up 77% YoY (from $0.35) and up 55% QoQ (from $0.40).
• GAAP result: a net loss of $0.55 per share (a $191.7m net loss). See the warning below — this gap is the most important thing on the page.
• Non-GAAP operating margin: 15.3%, up from 11% a year ago and about 12% last quarter. Growth accelerated and margin expanded, which is the harder combination.
• Net revenue retention: 126% — unchanged from last quarter. Existing customers spent 26% more than they did a year earlier.
• Remaining performance obligations: $9.00bn, up 30% YoY — but down about 2% from $9.21bn last quarter, and decelerating from the 38% YoY growth reported three months ago.
• Customers: 828 customers spending over $1m on a trailing-twelve-month basis (up 27% YoY, from 779 last quarter); 692 net new customers added; 829 Forbes Global 2000 customers.
• Guidance raised: full-year FY27 product revenue of $6,070m (36% growth), up from prior guidance of $5,840m (31%). Non-GAAP operating margin guidance lifted to 14.5% from 13.5%. Q3 product revenue guided to $1,588–1,593m, up 37–38%.

Two numbers to read carefully

The profit gap. Snowflake reported non-GAAP EPS of $0.62 and a GAAP net loss of $0.55 per share in the same quarter. Almost the entire difference is stock-based compensation: $456m of SBC-related charges, equal to about 29% of revenue. Non-GAAP treats that as a non-cash item to be excluded; GAAP treats it as a real cost of paying employees, because shares issued to staff dilute existing shareholders. Neither figure is dishonest, but "Snowflake earned $0.62" and "Snowflake lost money" are both true statements about this quarter, and it is worth knowing which one you are repeating.

The RPO wrinkle. Remaining performance obligations — contracted revenue not yet recognised — fell sequentially to $9.00bn from $9.21bn, and YoY growth slowed from 38% to 30%. RPO is lumpy by nature, because it moves whenever a few large multi-year renewals happen to land inside or outside a quarter, so one soft print is not a trend. But it is the one metric in this release pointing the opposite way from the rest, and a card that showed only the good lines would not be worth trusting.

What was filed: 8-K Item 2.02

An 8-K is the form a US public company files when something material happens between quarterly reports — it must generally be filed within four business days. Item 2.02 — Results of Operations and Financial Condition is the item code used specifically for releasing earnings.

The mechanics are worth learning once. The 8-K itself is a short cover document; the numbers live in Exhibit 99.1, the press release attached to it. And an earnings 8-K is not the full audited picture — the complete financial statements, footnotes and risk factors arrive weeks later in the 10-Q. A company also chooses which non-GAAP measures to headline in that press release, which is exactly why reading the GAAP reconciliation table further down the exhibit is a habit worth building.

Why it matters

Snowflake sells data warehousing and AI tooling on a consumption model — customers pay for what they actually run, so revenue tracks usage rather than seat count. That makes revenue growth an unusually direct read on whether enterprise AI workloads are being deployed or merely discussed. Third consecutive quarter of accelerating product revenue growth, with net retention holding at 126%, says existing customers are running more on the platform, not just signing up.

What to weigh from here. Cost of growth: SBC at 29% of revenue is high, and it dilutes shareholders every quarter — non-GAAP operating margin expanding to 15.3% matters partly because it shows the company growing into that cost rather than away from it. Consumption cuts both ways: the same model that captures an AI upswing quickly also gives back revenue quickly if customers optimise their spend, which is what unsettled investors across this software cohort. Competition: the cloud hyperscalers sell competing data platforms bundled with the infrastructure customers already buy. The raise: lifting full-year guidance from 31% to 36% growth mid-year is a real signal of confidence, and also a bar management now has to clear twice more.

Beginner takeaway

Snowflake beat on revenue and on adjusted profit, and raised its full-year outlook — a strong quarter on the measures the company is usually judged on. The two things to hold alongside that: the business is still lossmaking under GAAP because of very large stock compensation, and contracted backlog dipped this quarter even as revenue accelerated. Reading both the good and the awkward number is the whole skill; the filing gives you both if you scroll past the highlights.

FAQ

What is net revenue retention, and why is 126% good? It measures what existing customers spend now versus a year ago, ignoring new customers. Above 100% means the existing base is growing on its own; 126% means it grew 26% without adding a single new logo.

Why is a quarter ending 31 July called "Q2 fiscal 2027"? Snowflake's fiscal year ends 31 January, so it runs roughly a year ahead of the calendar. Its FY2027 covers February 2026 to January 2027.

Is stock-based compensation really a cost if no cash goes out? Yes, in the sense that matters to you as a shareholder. Paying staff in shares issues new shares, which makes each existing share a slightly smaller slice of the company. No cash leaves, but value transfers.

Should falling RPO worry me? By itself, not much — RPO swings with the timing of large contract renewals and is one of the noisiest metrics companies report. It is worth watching over three or four quarters rather than reacting to one print.

As of 2 September 2026. Source: official SEC filing — read it directly here. We summarise filings for education and may make errors, so always verify against the official document. Educational content only — not investment advice, not a buy/sell recommendation.