"Think of it as a backlog. It's the total value of future revenue Snowflake has already locked in through signed customer contracts. It's not what they earned last quarter. It's what they're guaranteed to earn going forward. For a company selling enterprise data infrastructure and AI tools, this number is the clearest window into how confident customers are in the platform's future."
"Last quarter, Snowflake's most recent reported results, the RPO figure hit $7.88 billion, up 37% year-over-year. That alone is striking. But what makes it more interesting is the trajectory. In Q1 FY26, RPO was $6.7 billion, growing 34% year-over-year. By Q3, that growth rate had ticked up to 37%. The number isn't just big. It's accelerating."
"Snowflake is in the middle of a major product transition. It's no longer just a cloud data warehouse. It's becoming an enterprise AI platform, with products like Snowflake Intelligence, its enterprise AI agent, showing the fastest adoption ramp of anything in its portfolio. The company also recently announced a significant partnership with OpenAI."
Snowflake's Q4 FY26 earnings hinge on remaining performance obligation (RPO), representing contracted future revenue from signed customer agreements. RPO serves as a critical indicator of customer confidence in the platform's future. The company's RPO reached $7.88 billion in Q3, up 37% year-over-year, with growth accelerating from 34% in Q1 FY26. This metric is particularly significant as Snowflake transitions from a cloud data warehouse to an enterprise AI platform, launching products like Snowflake Intelligence and partnering with OpenAI. RPO demonstrates whether these strategic investments are resonating with customers and converting into long-term commitments.
#snowflake-earnings #remaining-performance-obligation-rpo #ai-platform-transition #enterprise-data-infrastructure #customer-commitment-metrics
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