Databricks at $4.8B ARR

We last covered Databricks as it crossed $4B ARR in August 2025 with its AI products hitting $1B run-rate within 18 months of launch.

Key points from our December 2025 update via Sacra AI:

Databricks hit $4.8B in annualized revenue in September 2025, growing 55% YoY with 140% net dollar retention, raising a $4B+ Series L at a $134B valuation for a ~28x revenue multiple—compared to Snowflake (NYSE: SNOW) at ~$4.6B growing 29% YoY with 125% net dollar retention, valued at ~$90B for a ~20x multiple, with Databricks growing nearly 2x faster at comparable scale and on track to pass Snowflake in absolute revenue in 2026.
Their respective revenue mix shows how the two businesses have diverged, with Databricks generating ~$2.8B in revenue (~60%) from its core data platform (Spark jobs, notebooks, ML pipelines), with data warehousing (Databricks SQL) and AI products (Mosaic AI) each at a $1B run-rate (~20% each), while Snowflake derives the vast majority (94%) of its $4.6B from warehousing, with platform expansion products like Cortex (AI, ~$100M), Snowpark (data engineering), and Streamlit (apps) as much smaller lines of business.
Pushing from data infrastructure into the application layer, nascent product lines like Lakebase for serverless Postgres (from May 2025 Neon acquisition), Agent Bricks for AI agent orchestration, and Databricks Apps for app deployment increasingly position Databricks to capture revenue from software built on top of its platform vs. just the data processing underneath it.

For more, check out this other research from our platform:

VP of Cloud Operations, Legal Tech - Databricks