SNOW · Snowflake Inc.
10-Q filed 2026-09-04 period 2026-07-31
65 Stable
confidence high · source filing on SEC.gov ↗
- Revenue grew 35.1% YoY to $1.55 billion for the three months ended July 31, 2026, driven by consumption of compute, storage, and data transfer resources.
- Snowflake completed the acquisitions of Observe, Inc. for $595.8 million and Natoma Labs, Inc. for $128.3 million during the six months ended July 31, 2026.
- Remaining performance obligations (RPO) declined sequentially to $9.00 billion from $9.21 billion in the prior quarter, reflecting variable customer consumption patterns and budget optimization.
vs. prior filing (10-Q filed 2026-05-29) — ⚠ ALERT
FHS 80 → 65 (-15) · Strong -> Stable
Profitability -10Balance sheet -5Cash generation -15Risk flags -30Mgmt signal -15
Filing Health Score pillars
Profitability 25%
65
Revenue grew 35.1% YoY to $1.55B for the three months ended July 31, 2026, and operating loss narrowed to $(263.0)M from $(340.3)M, demonstrating positive operating leverage, though the company remains GAAP unprofitable (Condensed Consolidated Statements of Operations).
Balance sheet 20%
75
Total cash and investments of $4.33B comfortably exceed convertible senior notes of $2.28B, and interest income of $42.0M easily covers interest expense of $2.1M, though share count continues to rise due to stock-based compensation and acquisitions (Condensed Consolidated Balance Sheets).
Cash generation 20%
70
Operating cash flow of $334.6M for the six months ended July 31, 2026 is positive despite a net loss of $(487.3)M, and FCF was $83.8M for the quarter, though cash generation is heavily reliant on stock-based compensation add-backs (Condensed Consolidated Statements of Cash Flows, Key Business Metrics).
Risk flags 20%
55
The company faces significant litigation and regulatory inquiries related to customer cybersecurity incidents since May 2024, alongside ongoing securities class actions and copyright infringement lawsuits (Risk Factors).
Mgmt signal 15%
60
Management notes that macroeconomic headwinds continue to cause customers to optimize consumption and shorten contract durations, and RPO declined sequentially to $9.00B from $9.21B, though net revenue retention remains stable at 126% (Key Business Metrics, Impact of Macro- and Microeconomic Conditions).
Key metrics (Three Months Ended July 31, 2026)
total debt: $2,283,985 thousand
cash and equivalents: $1,707,187 thousand
operating cash flow: $91,357 thousand
net income: $(191,720) thousand
shares outstanding: 352,455 thousand
period: Three Months Ended July 31, 2026
revenue: $1,546,793 thousand
Gemma triage notes (pre-analysis, second opinion)
risk_factors
Here’s a terse bullet-point analysis of the SEC filing excerpt, focusing on the requested categories:
* **Notable Changes:** Shift in common stock designation to “common stock” (effective July 3, 2025). Acquisition of Natoma Labs and Observe, Inc.
* **Red Flags:**
* **Going Concern:** Macroeconomic conditions impacting customer budgets and consumption (inflation, interest rates).
* **Restatement:** None explicitly stated, but emphasis on GAAP vs. non-GAAP metrics suggests potential discrepancies.
* **Litigation:** None mentioned.
* **Customer Concentration:** 41% of revenue from Forbes Global 2000 customers; reliance on large enterprise sales.
* **Control Weaknesses:** Consumption accelerates from initial capacity commitments – potential for revenue recognition challenges.
* **Overall Tone:** Optimistic but cautious. Highlights growth opportunities (AI Data Cloud, new customers) while acknowledging macroeconomic headwinds and the need for continued investment and customer engagement. Emphasis on data-driven decision making and key business metrics.Automated research summaries derived from SEC filings. Not investment advice.