Snowflake ended July 31, 2026 with 14,554 total customers, up from 13,245 at January 31, 2026, and 829 Forbes Global 2000 customers, which accounted for about 41% of revenue in the six months ended July 31, 2026.
Net revenue retention was 126% as of July 31, 2026, compared with 125% at January 31, 2026.
The company said its business was affected by inflation, high interest rates, capital market volatility, energy market volatility, foreign currency swings, tariffs, trade wars, and geopolitical and military conflicts. It said those conditions have led customers to rationalize budgets, shorten contract duration, reduce storage through shorter data-retention policies, and optimize AI usage.
Snowflake completed two acquisitions in the period: Observe, Inc. on February 2, 2026, for preliminary consideration of $595.8 million, consisting mainly of $285.7 million in cash and about 1.5 million shares of Snowflake common stock valued at $285.3 million. Natoma Labs, Inc. on June 3, 2026, 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 the Natoma deal, Snowflake also issued about 0.2 million shares to certain employees, with a fair value of $54.4 million, to be recognized as post-combination stock-based compensation over three years.
Snowflake said its platform runs across three major public clouds in 55 regional deployments worldwide. Its revenue model remains consumption-based, with fees tied to compute, storage, and data transfer usage.
The company said customers typically enter capacity arrangements lasting one to four years, or use on-demand monthly billing. It also said deferred revenue is not a meaningful indicator of future revenue because consumption often accelerates through a contract term and can exceed initial capacity commitments.
Snowflake’s growth remains tied to expanding usage among existing customers and increasing adoption of AI-related products, including Snowpark and AI capabilities. It said many customers are still tied to legacy database and big data systems, making adoption timing difficult to predict. The market has reacted to these announcements by moving the company's shares -5.41% to a price of $337.18. If you want to know more, read the company's complete 10-Q report here.
