Snowflake stock surged over 19% in after-hours trading on Wednesday after the data cloud company reported impressive third-quarter results that exceeded Wall Street's expectations. The company's strong performance was further boosted by news of its ongoing talks to partner with AI startup Anthropic, which would allow Snowflake customers to access Anthropic's advanced language models for building AI applications.
For the third quarter, Snowflake reported adjusted earnings of $0.20 per share, beating analysts' estimates of $0.15 per share. Revenue for the quarter soared 28% year-over-year to $942.1 million, surpassing the consensus estimate of $899.3 million. The company's product revenue, which accounts for the majority of its business, grew an impressive 29% to $900.3 million.
Encouraged by the robust 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 fourth-quarter product revenue to range between $906 million and $911 million, exceeding analysts' expectations.
In addition to the strong financial results, Snowflake's stock rally was fueled by reports of the company's ongoing talks with AI startup Anthropic. According to reports, the potential partnership would allow Snowflake customers to access Anthropic's large language models, enabling them to build AI-powered applications within the secure and governed environment of Snowflake's platform.
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.
