Snowflake Q3 Revenue Up 29% to $1.21B, Guidance Raised to $4.45B
Q3 fiscal 2025 revenue rose 29% to $1.21 billion, with product revenue at $1.16 billion beating estimates, non-GAAP operating margin expanding 450 bps to 10.8% and free cash flow margin nearing 10%. Management raised full-year revenue guidance to $4.45 billion, as performance obligations climbed 38% to $7.88 billion, driven by AI-fueled demand.
1. Q3 Fiscal 2025 Results
Snowflake posted Q3 fiscal 2025 revenue of $1.21 billion, up 29% year-over-year, with product revenue at $1.16 billion beating estimates. Non-GAAP operating margin expanded 450 basis points to 10.8% and free cash flow margin approached double digits, reflecting improved cost discipline.
2. AI Momentum and Product Adoption
Cortex AI achieved a $100 million revenue run rate a quarter ahead of schedule, and AI-driven bookings accounted for roughly half of total bookings, indicating strong enterprise adoption. Snowflake Intelligence became the fastest-adopted product in company history, while initiatives like Apache Iceberg support and Snowpark broaden addressable workloads.
3. Guidance Raised and Demand Indicators
Management raised full-year revenue guidance to $4.45 billion, implying sustained high-20s growth, backed by record large-deal activity and improving customer behavior. Remaining performance obligations climbed 38% year-over-year to $7.88 billion and net revenue retention remained robust at 125%, signaling durable multi-year demand visibility.