Key Points
- Snowflake raised its 2025 product revenue forecast to $3.43 billion, up from $3.36 billion. The company reported $942.1 million in revenue.
- Shares surged 20.04% in pre-market trading following the announcement.
- Snowflake partnered with Anthropic to integrate Claude AI models. The acquisition of Datavolo strengthens Snowflake’s AI capabilities.
- Snowflake is developing AI agents to automate routine tasks via its Snowflake Intelligence platform.
Snowflake Inc. (NYSE: SNOW) has revised its 2025 product revenue forecast upward, reflecting robust demand for its data cloud and analytics solutions as improving economic conditions encourage increased technology spending by clients. The announcement led to a 20.04% or 25.88 surge in Snowflake’s shares at pre-market trading to reach 155.00.
The company anticipates 2025 product revenue of $3.43 billion, a modest increase from its earlier forecast of $3.36 billion. Snowflake’s platform has gained significant traction among enterprises, leveraging AI-powered tools to manage and analyze large datasets, cementing its position in the growing data cloud market.
In its third-quarter financial results, Snowflake reported a per-share profit of $0.20, surpassing analyst expectations by $0.05. Quarterly revenue reached $942.1 million, exceeding the consensus estimate of $899.3 million. This performance underscores the company’s ability to navigate economic uncertainties while maintaining strong revenue growth.
KeyBanc Capital Markets analysts reaffirmed their Overweight rating on Snowflake stock, raising the price target from $150 to $185. Analysts Eric Heath and Billy Mandl highlighted the company’s strong results and management’s optimistic commentary as pivotal in addressing concerns over Snowflake’s growth trajectory and AI strategy. RBC Capital Markets also expressed confidence in Snowflake’s potential, increasing its price target to $188 from $175 and maintaining a conservative growth estimate for fiscal 2026.
In a strategic move to bolster its AI capabilities, Snowflake announced a multi-year partnership with Anthropic, integrating Claude AI models for enhanced data analysis. The company also acquired Datavolo to strengthen its AI expansion efforts.
Additionally, Snowflake has been advancing its Snowflake Intelligence platform, which focuses on developing AI agents capable of automating routine tasks. These AI agents represent the next evolution in AI-powered tools, going beyond traditional copilots to offer independent task management.
With its continued focus on innovation and strategic partnerships, Snowflake positions itself as a leader in the intersection of AI and cloud data analytics, aiming to capitalize on the growing demand for advanced data management solutions.
