Snowflake said its customer base reached 14,554 as of July 31, 2026, up from 13,245 at January 31, 2026, while its net revenue retention rate improved to 126% from 125% over the same period.
The company said 829 of its customers were on the Forbes Global 2000 list as of July 31, 2026, and those accounts generated about 41% of revenue for the six months ended July 31, 2026.
Snowflake disclosed two acquisitions in the period. On February 2, 2026, it bought Observe, Inc. for preliminary consideration of $595.8 million, made up of $285.7 million in cash and about 1.5 million shares of Snowflake common stock valued at $285.3 million at the acquisition date. On June 3, 2026, it bought Natoma Labs, Inc. for preliminary consideration of $128.3 million, consisting mainly of about 0.5 million shares valued at $110.5 million and $17.7 million in cash.
In connection with the Natoma deal, Snowflake also issued about 0.2 million additional shares to certain Natoma employees. Those shares were valued at $54.4 million and will be expensed as post-combination stock-based compensation over three years.
Snowflake said its platform is built on three major public clouds across 55 regional deployments worldwide. It also said customers typically sign capacity arrangements lasting one to four years, or use on-demand contracts billed monthly in arrears.
The company said its revenue is driven mainly by consumption of compute, storage, and data transfer resources. Compute usage is billed by type and duration, or by volume of data processed for some features; storage is billed on average terabytes per month; and data transfer is billed by terabytes moved, cloud provider, and region.
Snowflake said macroeconomic pressure continues to affect customer behavior, including budget rationalization, shorter contract durations, lower storage retention, and more careful AI usage. Following these announcements, the company's shares moved -5.41%, and are now trading at a price of $337.18. Check out the company's full 10-Q submission here.
