Snowflake raised its annual product revenue forecast on Wednesday and announced a collaboration with AI firm Anthropic. This partnership aims to enhance its cloud services, boosting Snowflake’s shares by nearly 19% in after-hours trading.
Enterprises are increasingly adopting Snowflake’s data cloud to organize vast amounts of data using AI-driven services. This trend highlights the growing demand for smarter, AI-powered data solutions.
Snowflake, like Salesforce and Microsoft, is advancing its artificial intelligence capabilities. The company is using its Snowflake Intelligence platform to develop autonomous agents. These agents, often seen as the next step beyond copilots, can handle repetitive tasks efficiently.
Through its multi-year collaboration with Anthropic, Snowflake will empower customers to build and refine their AI applications. Anthropic’s large language models will help enhance these capabilities.
With this technology, Snowflake’s AI agents will not only analyze data but also create detailed visualizations.
“Our partnership with Snowflake enables enterprises of any size and industry to access our most advanced models within their secure data environment,” said Michael Gerstenhaber, vice-president of product at Anthropic.
Analysts are closely monitoring how Snowflake’s new CEO plans to transform the company into a leading AI software firm. This shift comes as competition in the AI space intensifies.
Snowflake raised its product revenue forecast for 2025 to $3.43 billion, up from $3.36 billion. For the fourth quarter, it expects product revenue between $906 million and $911 million, exceeding analysts’ predictions of $884.5 million, according to LSEG data.
In the third quarter, Snowflake reported a total revenue of $942.1 million, surpassing the expected $897 million. The company’s product revenue also beat forecasts, reaching $900.3 million. Adjusted earnings were 20 cents per share, higher than the predicted 15 cents.
