Snowflake (SNOW) shares experienced an increase of more than 8% on Thursday February 27, 2025, following the reported strong fourth quarter earnings,exceeding Wall Street expectations
In light of this new information the company also announced a major Ai push, including an expanded partnership with Microsoft Azure to merge OpenAI models into its platform
Earnings Beat and Strong Revenue Growth
Snowflake posted adjusted earnings of 30 cents per share on $987 million in revenue, surpassing analysts’ forecasts of 17 cents per share and $956 million in revenue, according to LSEG.
This represents a 27% increase in revenue on a year-on-year basis, along with strong demand for the company’s data solutions.
“We see tremendous opportunities ahead to support our customers throughout their end-to-end data lifecycle, and we are laser-focused on delivering on this vision,” said CEO Sridhar Ramaswamy in a press release. He also described Snowflake as “the most consequential data and AI company in the world.”
Product revenue grew 28% to $943 million, outperforming analyst expectations of $914 million. Looking ahead, Snowflake expects $4.28 billion in product revenue for the year, exceeding Wall Street’s estimate of $4.21 billion.
However, guidance for the current quarter fell slightly short, with expected product revenues ranging between $955 million and $961 million, compared to the $961 million forecast.
AI Expansion and Strategic Partnerships
Snowflake continues to develop its AI capabilities,and is now completing itself in contrast to peer competitors in the generative AI market. The company announced a multiyear partnership with Anthropic, an AI research company, and disclosed the acquisition of Datavolo, a data management startup, to strengthen its AI-driven solutions.
Goldman Sachs analyst Kash Rangan believes Snowflake is well-positioned for long-term AI growth. According to him:
“By expanding the reach and accessibility of its core data platform to more avenues such as [large language models], Hyperscalers, etc., Snowflake can become core to the development of AI applications,” he said.
The company reported 11,159 customers, exceeding analyst expectations of 10,987, indicating strong enterprise adoption.
Snowflake also announced that Chief Financial Officer Michael Scarpelli will retire, though he will remain in his role until a successor is named.
With shares already up 8% year-to-date, investors remain optimistic about Snowflake’s AI-driven future.
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