Snowflake Reports Q4 Earnings Beat, Shares Surge 14%

Snowflake reported a robust fourth quarter with revenue of $986.8 million, surpassing analysts' expectations and reflecting a 27% year-over-year increase. Despite a wider net loss of $327.5 million, the company's adjusted earnings per share of $0.30 exceeded estimates of $0.17, contributing to a significant after-hours stock surge of up to 13.9%. The data cloud provider is benefiting from increased adoption of AI-driven services, notably through its expanded partnership with Microsoft to integrate OpenAI models into its Cortex AI platform. Snowflake anticipates continued growth, projecting first-quarter product revenue between $955 million and $960 million, slightly above analyst forecasts. Additionally, the company has reported an increase in high-value customers, with 580 clients generating over $1 million in product revenue annually. Looking forward, Snowflake expects fiscal 2026 product revenue to grow by 24%, exceeding analyst estimates.