Snowflake’s stock surged nearly 40% in extended trading on Wednesday, following an earnings report that exceeded analyst expectations.
The cloud data platform provider reported record product revenue, driven by acceleration in artificial intelligence adoption. This marks the company’s fastest growth in recent quarters.
Snowflake also raised its full-year product revenue outlook, signaling sustained demand for its data cloud services. The company attributed the momentum to increased enterprise spending on AI and machine learning projects.
In addition to the strong financial results, Snowflake announced a new five-year commitment worth approximately $6 billion to expand its collaboration with Amazon Web Services. The partnership is expected to deepen product integrations and co-sell efforts.
Revenue for the quarter hit $904 million, up 29% from the same period last year. Product revenue specifically reached $869 million, topping the company’s own guidance.
Snowflake’s net loss narrowed to $125 million, compared to $195 million in the year-ago quarter. Adjusted earnings per share came in at $0.20, beating the consensus estimate of $0.16.
Executives noted that customers are using Snowflake’s platform to build automated data pipelines and deploy generative AI applications. The company now counts more than 540 customers with trailing 12-month product revenue over $1 million.
The stock rally positioned Snowflake for its best single-day gain since its public market debut in 2020. Analysts have raised price targets, citing the cloud firm’s expanding role in enterprise AI infrastructure.
