Snowflake Inc. reported its third quarter financial results for fiscal 2026, ending October 31, 2025. The company achieved revenue of $1.21 billion, up 29% year-over-year, with product revenue reaching $1.16 billion, also up 29%. Key metrics include a net revenue retention rate of 125%, 688 customers with over $1 million in trailing 12-month revenue, and remaining performance obligations of $7.88 billion, a 37% increase YoY. Despite strong growth, the company issued a cautious profit margin outlook, projecting an adjusted operating income margin of about 7% for the quarter ending in January, below analysts’ estimate of 8.5%. This has raised concerns about the profitability of its new AI-driven tools, especially as the company’s AI platform, Snowflake Intelligence, saw rapid adoption and is integral to its strategic growth. Snowflake also announced its full-year fiscal 2026 guidance, expecting product revenue between $4.78 billion and $4.80 billion, with a non-GAAP operating margin around 11%. The company’s financial results reveal a net loss of approximately $293.96 million for the quarter, with significant expenses related to stock-based compensation and strategic investments. Despite recent stock pullbacks, analysts remain cautious but note Snowflake’s strong market position and growth potential. The upcoming earnings release is highly anticipated, with expectations of earnings around 31 cents per share and revenue of approximately $1.18 billion, though the company’s outlook has tempered investor enthusiasm due to margin concerns and AI cost fears.