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Snowflake Stock Analysis: Strong Q2 Growth, with Persistent Losses

Snowflake (NYSE: SNOW), the AI Data Cloud company, recently announced its financial results for the second quarter of fiscal 2026, which ended on July 31, 2025. The report was very good and showed that the company is continually growing, but it also showed that it is still losing money.

Snowflake stock AI analysis chart

Financial Performance

The Q2 fiscal 2026 performance of Snowflake provides an image of an organization that has a significant momentum. The company reported product revenue of $1.09 billion, marking a substantial 32% year-over-year growth. This was a key driver for the overall revenue of $1.1 billion, which also grew by 32% year-over-year.

The report highlighted several other positive metrics:

  • A strong net revenue retention rate of 125%, indicating that existing customers are expanding their use of the platform and driving significant value.

  • The company's customer base continues to grow, with 654 customers now generating over $1 million in trailing 12-month product revenue and 751 Forbes Global 2000 customers.

  • Remaining performance obligations (RPO), a measure of future revenue, increased by a solid 33% year-over-year to $6.9 billion.

Furthermore, Snowflake demonstrated improved profitability. While still reporting a GAAP operating loss of $340.3 million and a net loss of $298.0 million, both figures showed a slight improvement compared to the previous year. Net loss per share also narrowed to $0.89, an improvement from $0.95 in fiscal 2025. According to CEO Sridhar Ramaswamy, "Thousands of customers are betting their business on Snowflake and more than 6,100 accounts are using Snowflake’s AI every week," demonstrating the platform's utility in the age of data and AI.

Stock Technical Analysis

Besides the financial report, crucial price levels are also being observed by investors and traders as a measure of the future direction of the stock. Snowflake’s stock is trading near critical resistance at $225. If shares break and hold above this level, the next upside target is $259.

Conversely, if the stock fails to break through the $225 level, it may retrace and seek support. The immediate support level to watch is $190. A more significant downturn could see the stock test the further support range between $177 and $166.

Conclusion

With the strong revenue growth and expanding enterprise adoption, the fundamentals of Snowflake reveal long-term optimism, yet investors have to consider its ongoing losses and short-term technical challenges.