Revenue growth has stabilized at 35.1% in 2027Q2, but operating losses persist with a -17.0% margin, driven by R&D and SG&A expenses that together consume over 80% of revenue.
Snowflake Inc. (SNOW) annual income statement — 8-year revenue, gross profit & net income history
| Metric | TTM | Jan'26 | Jan'25 | Jan'24 | Jan'23 | Jan'22 | Jan'21 | Jan'20 | Jan'19 |
|---|
| Sales/Revenue | 5.43B | 4.68B | 3.63B | 2.81B | 2.07B | 1.22B | 592.05M | 264.75M | 96.67M |
| Revenue Growth % | 32.04% | 29.16% | 29.21% | 35.86% | 69.41% | 105.95% | 123.63% | 173.88% | - |
| Cost of Goods Sold | 1.79B | 1.54B | 1.21B | 898.56M | 717.54M | 458.43M | 242.59M | 116.56M | 51.75M |
| COGS % of Revenue | - | 32.83% | 33.5% | 32.02% | 34.74% | 37.6% | 40.97% | 44.03% | 53.54% |
| Gross Profit | 3.64B | 3.15B | 2.41B | 1.91B | 1.35B | 760.89M | 349.46M | 148.19M | 44.91M |
| Gross Margin % | 67.03% | 67.17% | 66.5% | 67.98% | 65.26% | 62.4% | 59.03% | 55.97% | 46.46% |
| Gross Profit Growth % | - | 30.45% | 26.41% | 41.53% | 77.18% | 117.73% | 135.82% | 229.95% | - |
| Operating Expenses | 4.88B | 4.58B | 3.87B | 3B | 2.19B | 1.48B | 893.4M | 506.28M | 230.38M |
| OpEx % of Revenue | - | 97.81% | 106.66% | 106.99% | 106.04% | 121.04% | 150.9% | 191.23% | 238.32% |
| Selling, General & Admin | 2.77B | 2.61B | 2.08B | 1.71B | 1.4B | 1.01B | 655.45M | 401.12M | 161.7M |
| SG&A % of Revenue | - | 55.76% | 57.48% | 61.1% | 67.89% | 82.75% | 110.71% | 151.51% | 167.27% |
| Research & Development | 2.11B | 1.97B | 1.78B | 1.29B | 788.06M | 466.93M | 237.95M | 105.16M | 68.68M |
| R&D % of Revenue | - | 42.05% | 49.18% | 45.89% | 38.15% | 38.29% | 40.19% | 39.72% | 71.05% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -1.24B | -1.44B | -1.46B | -1.09B | -842.27M | -715.04M | -543.94M | -358.09M | -185.47M |
| Operating Margin % | -22.76% | -30.64% | -40.15% | -39.01% | -40.77% | -58.64% | -91.87% | -135.26% | -191.86% |
| Operating Income Growth % | - | 1.43% | -33% | -29.98% | -17.79% | -31.46% | -51.9% | -93.08% | - |
| EBITDA | -975.59M | -1.21B | -1.27B | -974.87M | -778.73M | -693.54M | -534.11M | -354.57M | -184.1M |
| EBITDA Margin % | -17.95% | -25.93% | -35.12% | -34.74% | -37.7% | -56.88% | -90.21% | -133.93% | -190.45% |
| EBITDA Growth % | 27.13% | 4.62% | -30.63% | -25.19% | -12.28% | -29.85% | -50.64% | -92.59% | - |
| D&A (Non-Cash Add-back) | 184.41M | 220.44M | 182.51M | 119.9M | 63.53M | 21.5M | 9.83M | 3.52M | 1.36M |
| EBIT | -1.07B | -1.3B | -1.28B | -849.22M | -815.99M | -715.04M | -543.94M | -358.09M | -185.47M |
| Net Interest Income | 162.75M | 182.26M | 206.25M | 200.66M | 73.84M | 9.13M | 7.51M | 11.55M | 8.76M |
| Interest Income | 171.07M | 190.56M | 209.01M | 200.66M | 73.84M | 9.13M | 7.51M | 11.55M | 8.76M |
| Interest Expense | 8.31M | 8.3M | 2.76M | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 161.98M | 123.25M | 170.91M | 245.55M | 26.27M | 38.08M | 6.9M | 10.55M | 8.26M |
| Pretax Income | -1.07B | -1.31B | -1.29B | -849.22M | -815.99M | -676.96M | -537.04M | -347.54M | -177.21M |
| Pretax Margin % | -19.78% | -28.01% | -35.44% | -30.26% | -39.5% | -55.52% | -90.71% | -131.27% | -183.32% |
| Income Tax | 13.68M | 19.71M | 4.11M | -11.23M | -18.47M | 2.99M | 2.06M | 993K | 820K |
| Effective Tax Rate % | -1.27% | -1.5% | -0.32% | 1.32% | 2.26% | -0.44% | -0.38% | -0.29% | -0.46% |
| Net Income | -1.09B | -1.33B | -1.29B | -836.1M | -796.71M | -679.95M | -539.1M | -348.54M | -178.03M |
| Net Margin % | -20.07% | -28.43% | -35.45% | -29.79% | -38.57% | -55.76% | -91.06% | -131.65% | -184.17% |
| Net Income Growth % | 20.95% | -3.58% | -53.77% | -4.94% | -17.17% | -26.13% | -54.68% | -95.78% | - |
| Net Income (Continuing) | -1.09B | -1.33B | -1.29B | -837.99M | -797.53M | -679.95M | -539.1M | -348.54M | -178.03M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 6.71M | 10.29M | 12.18M | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -3.12 | -3.95 | -3.86 | -2.55 | -2.50 | -2.26 | -1.87 | -1.26 | -0.75 |
| EPS Growth % | 23.37% | -2.33% | -51.37% | -2% | -10.62% | -20.86% | -48.41% | -68% | - |
| EPS (Basic) | - | -3.95 | -3.86 | -2.55 | -2.50 | -2.26 | -1.87 | -1.26 | -0.75 |
| Diluted Shares Outstanding | 349.26M | 337.49M | 332.71M | 328M | 318.73M | 300.27M | 287.92M | 276.69M | 238.37M |
| Basic Shares Outstanding | 349.26M | 337.49M | 332.71M | 328M | 318.73M | 300.27M | 287.92M | 276.69M | 238.37M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying SNOW stock.
For fiscal year 2026, Snowflake Inc. (SNOW) reported total revenue of $4.68B. This represents a 4745.5% increase compared to $96.7M in 2019.
Snowflake Inc. (SNOW) reported a net loss of $1.33B for the fiscal year ending 2026.
Snowflake Inc. (SNOW) reported an operating income of $-1435.2M, resulting in an operating profit margin of -30.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Snowflake Inc. (SNOW) generated $3.15B in gross profit for the year, representing a gross profit margin of 67.2%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Consumption model volatility
Metrics are mathematically derived from official filings.
Growth Deceleration Amidst AI Tailwinds
Snowflake's revenue growth has decelerated from 32.9% in 2025Q1 to 35.1% in 2027Q2, a trend that appears to be stabilizing but remains below historical highs, suggesting the initial cloud migration tailwind is maturing.
The sequential trend shows a clear deceleration from the 30%+ growth rates seen in early 2025, though the most recent quarter's 35.1% growth represents a modest re-acceleration from the 30.1% low in 2026Q4. This pattern suggests the business is transitioning from hyper-growth to a more sustainable, albeit still robust, expansion phase. The key question for durability is whether AI-driven workloads, particularly through the Cortex platform, can reignite acceleration or if the consumption model will continue to reflect broader enterprise IT spending caution.
Structural Gross Margin Ceiling
Snowflake's gross margin has remained remarkably stable in the 66-68% range over ten quarters, a level structurally lower than pure software peers like Datadog (80%) due to its reliance on hyperscaler infrastructure costs.
The consistency of the gross margin band indicates limited near-term pricing power or cost leverage against its cloud providers (AWS, Azure, GCP), which act as both partners and cost centers. This structural ceiling means that significant operating margin expansion must come from operating leverage in SG&A and R&D, not from gross profit improvement. Investors should monitor the product gross margin separately to see if higher-margin AI services can begin to shift this mix.
Operating Leverage Emerging from Scale
Operating losses are narrowing as a percentage of revenue, with the operating margin improving from -42.1% in 2025Q1 to -17.0% in 2027Q2, indicating that revenue growth is beginning to outpace the scaling of operating expenses.
This improvement is driven by operating leverage, as SG&A as a percentage of revenue has declined from 59.6% to 48.8% over the same period, suggesting more efficient sales and marketing spend. However, R&D as a percentage of revenue has remained elevated near 37-38%, reflecting continued heavy investment in product innovation, particularly AI. The path to GAAP profitability hinges on maintaining this SG&A discipline while managing the R&D intensity required to defend its competitive position.
SBC Dominates the GAAP Loss
Stock-based compensation (SBC) totaled $423.6M in 2027Q2, representing approximately 28% of revenue and being the primary driver of the gap between positive free cash flow and the reported -12.4% net margin.
The magnitude of SBC is a critical quality issue, as it represents a real economic cost to shareholders through dilution that is not captured in operating cash flow. The net loss of $191.7M in the latest quarter would be significantly larger without the non-cash nature of this expense. This high dilution rate warrants monitoring, as it suggests the company's true cost of talent and growth is substantially higher than GAAP operating expenses imply.
R&D Intensity as a Strategic Choice
Research and development expenses have consistently consumed 37-38% of revenue over the past ten quarters, a level that appears elevated versus peers and signals a strategic prioritization of product development over near-term profitability.
This sustained high R&D spend, which reached $567.5M in 2027Q2, is likely aimed at expanding the platform's capabilities, especially in AI and data sharing, to deepen customer lock-in and fend off competitors like Databricks. While this investment is necessary for long-term competitiveness, it directly constrains the path to operating break-even. The key metric to watch is whether this R&D intensity can eventually translate into higher gross margins or net revenue retention rates that justify the expense.
The Consumption Model's Double-Edged Sword
The consumption-based revenue model, while offering flexibility to customers, creates inherent volatility and makes Snowflake's top line more sensitive to macroeconomic downturns than fixed-subscription SaaS peers.
In a scenario of enterprise budget tightening, customers can immediately reduce their compute usage, potentially leading to a sharper and faster revenue deceleration than peers with annual contracts. The historical deceleration from 32.9% to 30.1% growth in 2026 may be an early indicator of this sensitivity. Furthermore, the reliance on third-party cloud infrastructure means Snowflake has limited control over its own cost of goods sold, leaving it vulnerable to any future price increases from hyperscalers that could compress its already structurally lower gross margins.