From CNBC: 2025-02-27 09:26:55

Shares of Snowflake surged over 13% after the company reported fourth-quarter results that beat expectations. Snowflake posted adjusted earnings of 30 cents per share on $987 million in revenue, marking 27% year-over-year revenue growth. CEO Sridhar Ramaswamy expressed optimism about future opportunities and called Snowflake the most consequential data and AI company.

Snowflake, like its competitors, is focusing on offering new AI tools to customers. It recently expanded its partnership with Microsoft Azure to provide access to OpenAI models. Product revenue also exceeded estimates, growing 28% to $943 million. Snowflake anticipates $4.28 billion in product revenue for the year, surpassing expectations.

While Snowflake’s revenue outlook for the current quarter fell short of estimates, the company expects product revenues to range between $955 million to $961 million. Last quarter, Snowflake announced a multiyear partnership with Anthropic and the acquisition of startup Datavolo. Analysts are confident in Snowflake’s long-term potential in the AI space.

Goldman Sachs analyst Kash Rangan believes Snowflake is poised to become a generative AI winner. By expanding its core data platform to more avenues such as large language models, Snowflake can play a central role in the development of AI applications. The company reported 11,159 customers during the period, up from 10,618.

Shares of Snowflake have risen about 8% year to date. Chief Financial Officer Michael Scarpelli is set to retire, with plans to remain in the role until a successor is named. Snowflake continues to position itself as a key player in the data analytics and AI industry.



Read more at CNBC:: Snowflake surges 13% on earnings beat as company expands AI push