Snowflake Grows Customer Base by 1,309 in Six Months

By Tamara Parker • Monday, September 07 13:01 • Permanent Link

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% at July 31, 2026, compared with 125% at January 31, 2026.

The company said its platform runs across three major public clouds in 55 regional deployments worldwide.

Two acquisitions shaped the quarter’s opening months. On February 2, 2026, Snowflake acquired Observe, Inc. for preliminary consideration of $595.8 million, made up primarily 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 acquired 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.

Snowflake also issued about 0.2 million shares to certain Natoma employees, with a $54.4 million fair value that will be recognized as post-combination stock-based compensation over three years.

The company said customers typically sign capacity arrangements lasting one to four years, or use on-demand contracts billed monthly in arrears. It also said consumption for most customers accelerates over the life of the contract and often exceeds initial capacity commitments, prompting amendments or early renewals.

Snowflake said its business remains exposed to budget tightening, shorter contract durations, reduced storage retention, and lower AI usage as customers manage cash flow. It also pointed to efficiency gains from better storage compression, processor improvements, compute optimization, and open data formats as factors that can reduce resource consumption per workload.

The company said large enterprises remain central to its sales strategy, with direct sales supplemented by resellers and distributors. 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.

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