Snowflake presented its outlook at Citi's 2026 Global TMT Conference on September 10, 2026, saying it raised its full-year growth guidance from 31% to 36% year-over-year. The firm also noted that it had beaten its own guidance by more than 5% in each of the last two consecutive quarters.
Financially, Snowflake reported non-GAAP product gross margins steady at 74% and a gross profit margin of 67%. Revenue growth over the last twelve months stood at 32%. Thirty-eight analysts have revised earnings estimates upward, projecting profitability for fiscal 2027 with an estimated earnings per share of $2.36. The stock was trading around $332.47, down about 1.76% or $5.96 from a prior level, giving the company a market capitalization of roughly $117 billion. Over the past six months the share price has risen 89%, and it is up 51% year-to-date.
On the operational side, Snowflake added approximately 330 employees year-to-date, compared with 950 in the same period a year earlier. Of those recent hires, about 180 came from the Observe acquisition, leaving roughly 150 organic additions. Research and development headcount has remained flat or declined while lines of code produced have increased rapidly. The company has shifted hiring toward junior engineers with one to two years of experience who are fluent in AI tools, rather than primarily senior hires. The finance team has built around 150 AI use cases for automation across functions such as sales, marketing, HR, internal audit, investor relations, accounting, FP&A, tax and deal desk, with new cases added daily. Snowflake said it is investing tens of millions of dollars in employee retraining and that an internal tool called Raven helps teams analyze data such as ARR by vertical or customer segment.
Product-wise, the CoWork offering now has more than 5,000 accounts and is described as "data with rails around it" certified by data scientists with no hallucinations. Cortex’s cost optimization skill ranks among the top 10 most-used skills, and customers using Cortex tend to consume more of the core Snowflake business. Other AI-related products mentioned include AI Functions and AI Gateway, which are still in early stages. Snowflake’s system design remains open, supporting Iceberg Tables that allow customers to query data from anywhere.
During the Q&A, a Snowflake executive said, "We actually encourage and want our customers to do optimization. We encourage and want our customers to use Cortex, but we don't want them to do it in an unhealthy way." Another executive added, "I think really it is the durability of the business as it relates to AI. The ability to do migrations quicker, to get more personas, to basically get deeper within these accounts and to really show them what can happen."
