Snowflake said it ended July 31, 2026 with 14,554 total customers, up from 13,245 at Jan. 31, 2026, and 829 Forbes Global 2000 customers, which accounted for about 41% of revenue in the first six months of fiscal 2027.
Net revenue retention was 126% as of July 31, 2026, compared with 125% at Jan. 31, 2026.
The company said its business was shaped by two recent acquisitions. On Feb. 2, 2026, it bought Observe, Inc. for preliminary consideration of $595.8 million, made up mainly of $285.7 million in cash and about 1.5 million shares of common stock valued at $285.3 million. On June 3, 2026, it bought Natoma Labs, Inc. for preliminary consideration of $128.3 million, consisting primarily of about 0.5 million shares valued at $110.5 million and $17.7 million in cash.
Snowflake also issued about 0.2 million shares to certain Natoma employees in connection with the deal. Those shares had a fair value of $54.4 million and will be recognized as post-combination stock-based compensation over three years.
The company said its platform is built on three layers — storage, compute and cloud services — and runs across three major public clouds in 55 regional deployments worldwide.
Snowflake said customers consume compute, storage and data transfer separately. Compute is billed by type and duration of use, or by volume of data processed for some features. Storage is billed on average terabytes per month. Data transfer is billed by terabytes moved, cloud provider and region.
It said most customers sign capacity agreements lasting one to four years, or use on-demand contracts billed monthly in arrears. When consumption exceeds contracted capacity, customers can buy more capacity or renew early. When consumption falls short, unused capacity may roll over if additional capacity is purchased.
Snowflake said macro and microeconomic pressures continued to affect customer behavior, including inflation, high interest rates, capital market volatility, tariffs, trade wars, geopolitical conflict and foreign exchange swings. Those conditions have led some customers to shorten contract duration, reduce storage through shorter retention policies and optimize AI usage.
The company said its customers often expand usage over time, but it also warned that efficiency gains from better storage compression, cloud processor improvements and compute optimization can reduce the resources needed for the same workloads. Open data formats can also allow customers to use compute without storage, which Snowflake said could lower revenue unless offset by new workloads. Following these announcements, the company's shares moved -5.41%, and are now trading at a price of $337.18. If you want to know more, read the company's complete 10-Q report here.
