Shares of Snowflake Inc. (SNOW) surged over 16% in after-hours trading on Wednesday, following the company's better-than-expected third-quarter results and an upbeat outlook, bolstered by the news of a potential AI partnership.
Snowflake reported Q3 adjusted earnings of $0.20 per share, beating analysts' estimates of $0.15. Revenue for the quarter came in at $942.1 million, surpassing the consensus estimate of $899.3 million. The company's product revenue grew 29% year-over-year to $900.3 million.
Encouraged by the strong demand for its data cloud and analytics platform, Snowflake raised its fiscal 2025 product revenue forecast to $3.43 billion, up from its previous guidance of $3.36 billion. The company expects Q4 product revenue to range between $906 million and $911 million, exceeding analysts' expectations.
In addition to the solid financial results, Snowflake's stock rally was further fueled by reports of the company's ongoing talks with AI startup Anthropic. According to The Information, the potential partnership would allow Snowflake customers to access Anthropic's large language models, enabling them to build AI-powered applications.
The combination of Snowflake's robust performance, optimistic outlook, and the potential AI collaboration has investors excited about the company's prospects in the rapidly growing data analytics and artificial intelligence markets.
