By Kritika Lamba
Dec 3 (Reuters) – Snowflake forecast fourth-quarter product revenue above analysts’ estimates but falls short of lofty investor expectations for stronger growth, sending its shares down about 8% in extended trading.
The cloud data analytics firm, whose shares have surged more than 70% this year, expects product revenue of $1.19 billion to $1.20 billion for the fourth quarter, representing 27% growth. The forecast was above analysts’ estimates of $1.18 billion, according to data compiled by LSEG.
“Given the dramatic appreciation in share price this year, investors were expecting guidance of more than 30%. We believe this growth will materialize next quarter allowing shares to continue appreciating,” said D.A. Davidson analyst Gil Luria.
Snowflake expanded its partnerships to strengthen its agentic AI and cloud ecosystem, announcing a multi-year $200 million agreement with Anthropic to bring Claude models to its platform for advanced reasoning and secure multi-step analysis.
The company also deepened ties with Accenture to help enterprises scale generative AI innovation, and unveiled new integrations with Amazon Web Services after surpassing $2 billion in sales on the AWS Marketplace this year.
The Bozeman, Montana-based company is similarly working with Google’s Gemini AI and other partners to embed large language models into its tools so customers can build and run AI applications directly on Snowflake-managed data.
The push comes as businesses accelerate generative AI strategies, using large language models for analytics, automation and customer engagement thereby fueling demand for AI-enabled cloud services across sectors, benefiting companies like Snowflake.
The company reported quarterly revenue of $1.21 billion, beating analysts’ estimates of $1.18 billion.
(Reporting by Kritika Lamba in Bengaluru; Editing by Krishna Chandra Eluri)
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