Snowflake Posts $1.23B Q4 Revenue, Secures Largest $400M Deal
Snowflake signed its largest $400M-plus contract and closed seven nine-figure deals in Q4 while adding 740 net new customers, bringing total to over 13,300. The company posted 30% year-over-year product revenue growth to $1.23B, achieved RPO of $9.77B (+42%) and guided FY2027 product revenue of $5.66B.
1. Record Large Deals
Snowflake signed its largest-ever contract exceeding $400 million in total contract value and closed seven nine-figure deals in Q4, compared with two a year earlier. The company also added 740 net new customers during the quarter, bringing its total customer base to over 13,300.
2. Strong Q4 Financial Metrics
Product revenue grew 30% year-over-year to $1.23 billion, while remaining performance obligations reached $9.77 billion, up 42% from last year. Snowflake’s net revenue retention rate held steady at 125% and non-GAAP operating margin was 10.5%.
3. AI Adoption and Observe Acquisition
More than 9,100 accounts used Snowflake’s AI capabilities, with Snowflake Intelligence scaling to over 2,500 accounts and Cortex Code supporting over 4,400 customers. The company completed a $600 million acquisition of Observe to expand into AI-powered observability within IT operations.
4. FY2027 Guidance and Capital Return
Snowflake guided fiscal 2027 product revenue to approximately $5.66 billion, implying 27% growth, and targets a 12.5% non-GAAP operating margin. In Q4, it repurchased $150 million of stock and finished the quarter with $4.8 billion in cash and investments.