Full Breakdown
Snowflake Projects $8 B in Product Revenue by Fiscal 2028
9/7/2026, 12:07:05 AM
Recent Performance and Growth Drivers
Snowflake’s fiscal 2027 second-quarter report showed product revenue of $1.49 billion for the quarter that ended July 31, a 37 % year-over-year increase following 30 % growth in the fourth quarter of 2026 and 34 % growth in the subsequent quarter. Management now expects total product revenue of about $6.07 billion for the full fiscal 2027 year (ending Jan. 31, 2027), representing 36 % growth over fiscal 2026. The acceleration is attributed to continued strength in the core data platform and a notable pickup in artificial-intelligence (AI) offerings, including the AI coding agent CoCo, which surpassed 9,100 accounts, adding more than 2,000 in three months.
Key Financial Metrics
The company’s net revenue retention rate held at 126 % for a second straight quarter, up from 125 % at the end of fiscal 2026, indicating that existing customers are expanding their spend faster than they reduce it. Remaining performance obligations (RPO)—the contracted, unrecognized revenue—reached $9.00 billion, up 30 % year over year, though the growth rate slowed from 42 % at the end of fiscal 2026 to 30 % in the latest quarter. Snowflake’s consumption-based model ties revenue to actual usage, making RPO trends a leading indicator of future earnings.
Outlook and Risks
Management’s guidance implies that achieving $8 billion in product revenue for fiscal 2028 would require roughly 32 % growth, a pace modestly lower than the current 36 % trajectory. Analysts note that if growth reverts to the original 27 % guidance for fiscal 2027, projected fiscal 2028 revenue would fall to about $7.7 billion, missing the $8 billion target. The primary risk centers on a potential slowdown in RPO growth, which could signal reduced customer consumption. However, the strong retention rate suggests that existing customers could supply most of the needed growth, leaving new business to cover the remainder.
What’s Next
Snowflake’s formal fiscal 2028 forecast is expected early next year. Observers will watch RPO trends and AI product adoption as leading signals of whether the company can sustain the growth needed to clear the $8 billion milestone.
