Snowflake Surges on Strong Earnings, AI Partnerships, and Analyst Upgrades

Snowflake Surges In Pre-Market On Monday: What's Going On? - Snowflake (NYSE:SNOW)

Snowflake Inc SNOW experienced a 3.52% increase in pre-market trading on Monday, according to Benzinga Pro. What Happened: This rise followed an upgrade from Neutral to Outperform by Dan Ives' Wedbush, with a revised price target of $190. Wedbush analysts expressed heightened optimism about the software sector's role in the evolving AI Revolution, projecting growth into 2025. Wedbush's analysis suggests that Snowflake is well-positioned to capitalize on the anticipated advancements in artificial intelligence, which is expected to drive significant growth in the software industry over the coming years. See Also: Satellite Images Reveal North Korea Reportedly Receiving Illicit Oil from Russia Why It Matters: The recent upgrades by Wedbush come on the heels of Snowflake's impressive third-quarter financial results, which exceeded analyst expectations. Snowflake reported revenue of $942.09 million, surpassing the estimated $896.99 million. The company's adjusted earnings were 20 cents per share, beating the forecasted 15 cents per share. Snowflake's total revenue increased by 28% year-over-year, with product revenue rising by 29%. The net revenue retention rate stood at 127% for the quarter. Additionally, the remaining performance obligations reached $5.7 billion, marking a 55% year-over-year growth. Read Next: Markets Misread Trump Win, Says Ex-Goldman Sachs Analyst: 'Prospects Of Tariffs Not Good For Equities' Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors. Photo via Shutterstock Market News and Data brought to you by Benzinga APIs

Snowflake Stock Rises as Wedbush Notes AI 'Sweet Spot' in Upgrade

The analysts added that it was time for the broader software sector to "get in on the AI party." Shares of Snowflake (SNOW) gained about 3% Monday afternoon as Wedbush upgraded the stock, saying the cloud software provider is in the "sweet spot" to benefit from the booming demand for artificial intelligence (AI) products. The bank raised its rating on the stock to "outperform" from "neutral." It has a new price target of $190. Wedbush argued that "the AI Software era is now here in our view." The analysts wrote that the first big phase of AI was driven by big players, including Microsoft (MSFT), Amazon (AMZN), and Alphabet's (GOOGL) Google. They said now it's "time for the broader software space to get in on the AI Party." Wedbush Says Snowflake's 'Optimization' Phase Over The analysts explained that Snowflake's "optimization" phase is over, and it continues to show strong improvement in quarter-over-quarter dollars "added for Product Revenues heading into an important AI driven FY26." They see the company getting a lift "from AI use cases over the next 12 to 18 months." In the same report, Wedbush also upgraded shares of data analytics company Elastic (ESTC), and raised the price targets for Palantir Technologies (PLTR) and Salesforce (CRM). Despite today's advance, shares of Snowflake remain 13% lower year-to-date.

Snowflake shares surge on rosy forecast, AI deal with Anthropic

(Reuters) - Snowflake's shares surged more than 24% in premarket trading on Thursday after the data analytics provider raised its annual product revenue forecast, signaling growing demand for cloud-based data storage and analytics. The company, whose shares have fallen 35% this year, was set to add about $10 billion to its market value of $43.3 billion, if premarket gains hold. The Bozeman, Montana-based company's results come months after Sridhar Ramaswamy took over as CEO, having previously spearheaded Snowflake's AI strategy as SVP of AI, and analysts have been since watching how the firm's AI efforts are progressing under the new leadership. Snowflake announced a partnership with Anthropic on Wednesday, which will allow its customers to enhance their AI applications using Anthropic's large language models on Snowflake's cloud-based data platforms. The multi-year deal will also allow Snowflake's AI agents to analyze data and generate visualizations, among other functions, the company said. The company expects product revenue of $3.43 billion for 2025, compared with its previous forecast of $3.36 billion. "It does not sound like the macro is getting dramatically better, but the better sales execution and new product momentum are helping Snowflake to deliver these results," Barclays analysts wrote in a note. At least 20 analysts hiked PT for the stock, while at least three upgraded their ratings on the stock. The median view stood at $185, representing an upside of 43.3%. The company's shares were trading 147.32 times their 12-month forward profit expectations, compared with 67.01 for Datadog and MongoDB's 91.04. (Reporting by Priyanka.G and Akash Sriram in Bengaluru; Editing by Tasim Zahid)

Snowflake, Elastic Poised For AI Revolution Gains, Analyst Upgrades The Stocks - Snowflake (NYSE:SNOW), Elastic (NYSE:ESTC), Salesforce (NYSE:CRM), Palantir Technologies (NYSE:PLTR)

Snowflake upgraded to Outperform with a $190 price target. Elastic's target raised to $135, reflecting AI-driven growth. Wedbush Securities analyst Daniel Ives has significantly increased his optimism on the next phase of the AI revolution, focusing on its transformative impact on the software sector. The analyst projects a monumental shift driven by generative AI adoption, enterprise consumption, and large language model (LLM) launches. As a result, Ives has upgraded Snowflake Inc SNOW and Elastic NV ESTC to Outperform and raised price targets for Palantir Technologies Inc PLTR and Salesforce Inc CRM to reflect their enhanced growth potential. Also Read: Amazon Strengthens Anthropic Partnership with $8 Billion AI Investment Ives notes Snowflake has moved past its "optimization" phase, citing substantial quarter-over-quarter improvements in product revenue. Snowflake stands to gain from the explosion of AI use cases over the next 12 to 18 months, positioning itself as a pivotal player in the enterprise adoption of generative AI. The analyst upgraded Snowflake to Outperform, raising its price target to $190, supported by a 30x long-term free cash flow (FCF) estimate. For Elastic, Ives highlights its strategic alignment with enterprises shifting to next-generation platforms. Customers are consolidating spending by moving from legacy vendors to Elastic's AI-powered solutions bolstered by the company's express migration program. Ives upgraded Elastic to Outperform with a new price target of $135, based on 8x its fiscal year 2026 enterprise value-to-revenue (EV/Revs) ratio. Ives raised his price target for Palantir from $57 to $75, leveraging a 38x long-term FCF target. He cites Palantir's groundbreaking AIP strategy, which enables enterprises to harness AI across diverse use cases. The company's robust product suite is expected to drive unprecedented demand as businesses increasingly recognize its value. Ives increased his price target for Salesforce from $325 to $375, citing a 28x long-term EBITDA valuation. His research indicates rising customer enthusiasm for Salesforce's AI-integrated product offerings, which drive the company's next wave of growth. Ives sees the broader software sector as entering an inflection point, projecting $2 trillion in AI spending in the coming years. With enterprises set to adopt AI at scale by 2025, companies like Snowflake, Elastic, Palantir, and Salesforce are poised to benefit from this unprecedented technological revolution. Price Actions: SNOW stock is up 3.12% at $172.67 at last check Monday. ESTC is up 3.85%, PLTR is up 0.80% and CRM is down 0.21%. Also Read: Snap Denies Child Exploitation Allegations, Wants Lawsuit Dismissed Photo via Shutterstock Market News and Data brought to you by Benzinga APIs

Snowflake's shares surge higher on blowout earnings, a promising acquisition and new AI partnership - SiliconANGLE

Snowflake's shares surge higher on blowout earnings, a promising acquisition and new AI partnership Shares of the cloud data warehouse company Snowflake Inc. jumped more than 20% in late trading today, with the bullish sentiment driven by a crushing earnings and revenue beat and increased guidance for the fiscal year. The company also announced a key partnership with the artificial intelligence firm Anthropic PBC and said it's going to acquire the data integration startup Datavolo Inc., further boosting investor optimism. Snowflake reported third quarter earnings before certain costs such as stock compensation of 20 cents per share in the quarter, easily beating Wall Street's consensus estimate of 15 cents. Revenue for the period came to $942 million, up 28% from a year earlier, cruising past the Street's target of $897 million. However, the strong numbers didn't prevent Snowflake's loss from widening. It reported a net loss of $324.3 million in the quarter, up from a loss of $214.3 million one year earlier. The company said product revenue accounted for 96% of its total sales. The company uses product revenue as its main guidance indicator, and it said it sees a total of $3.43 billion in fiscal 2025, which would imply growth of 29%. That's up quite a bit from its previous product revenue forecast of $3.36 billion, issued three months ago. In addition, Snowflake said it's now anticipating an adjusted operating margin of 5%, up from 3% earlier. In a conference call with analysts, Snowflake Chief Executive Sridhar Ramaswamy (pictured) said the company intends to focus now on saving money with a view to increasing its profitability in the quarters ahead. "We've been creating centralized, more efficient teams for some areas and removing redundant management layers, which enables us to make decisions faster," Ramaswamy said. However, the company's chief financial officer Mike Scarpelli butted in to say that the company is not planning any layoffs in the foreseeable future, despite that reorganization. The company reported 10,618 paying customers at the end of October, up 369 from three months ago and above the Street's target of 10,601 customers. One of those customers is the U.S. government, which only generates a very small fraction of its revenue at present. But Scarpelli told analysts that he sees significant room for growth. "We feel good about what we're doing, and we think there's a lot of upside in the federal space over the next couple of years," he said. No doubt, part of that potential stems from Snowflake's recent acquisition of a company called Night Shift Development Inc., a data analytics startup focused on the U.S. public sector. That acquisition was announced in September, when Snowflake said it will complement its ongoing investment in enabling more informed decision-making across government agencies. Snowflake's cloud data warehouse offerings have become more relevant to enterprises thanks to the ongoing shift from traditional on-premises servers to the cloud, and in recent months they have been further boosted by the growing demand for data to power artificial intelligence workloads. For years, the company has been viewed as a rival to public cloud computing providers like Amazon Web Services Inc. and Microsoft Corp., but at the same time, those companies are also key partners, providing it with its underlying infrastructure. Ramaswamy indicated that those partnerships are now taking on even more significance. "Through our collaboration with AWS, we have booked over $3.9 billion over the past four quarters," he told analysts on the call. Third Bridge analyst Jordan Berger said the company's strong revenue growth signals a return of strength and a subsidence of cost optimization headwinds that had held it back in recent quarters. "As an additional positive indication, after a period of sequential deceleration, its net revenue retention remained stable quarter-over-quarter at 127%," the analyst said. The acquisition of Datavolo also looks to be an important move. Snowflake didn't reveal how much it paid to acquire the startup, which had raised $25 million in funding and sells tools for building multimodal data pipelines for AI models. Ramaswamy said the acquisition will enable Snowflake to create more versatile data pipelines for its own customers. For instance, using Datavolo's tools, a customer might be able to replace single-use data connectors with more flexible pipelines that facilitate the movement of information from the cloud, to on-premises servers, and then to Snowflake's data warehouse. "By bringing Datavolo into the Snowflake fold, we are expanding how much of the data lifecycle Snowflake captures -- unlocking both simplicity and cost savings for our customers, without any sacrifice to data extensibility," Ramaswamy explained. As for the multiyear partnership with Anthropic, which is a rival to OpenAI, this is all about strengthening Snowflake's hand in generative AI. The alliance means Anthropic's most powerful Claude 3.5 models will be made accessible via Snowflake Cortex AI, which is a fully-managed service for AI development that runs on AWS. Also, Snowflake's AI agents, such as Snowflake Intelligence and Cortex Analyst, will be able to leverage Claude. According to Snowflake's executive vice president of Product, Christian Kleinerman, Anthropic's Claude models will help improve the ability of Snowflake's AI agents to analyze data, run ad-hoc data analytics, create visualizations based on that information, and perform other multi-step tasks. In addition, another benefit of the partnership is that Claude users will be able to leverage Snowflake's Horizon Catalog service, which provides enterprise-grade compliance, security and privacy for Cortex AI. In other words, it means Claude can be secured with granular access controls and safety guardrails, ensuring more secure and trustworthy AI, Snowflake said. "Our partnership with Anthropic represents a massive leap forward in expanding on our promise to provide thousands of global customers with easy, efficient, and trusted AI for a holistic set of enterprise use cases," Kleinerman insisted. Despite the impressive after-hours gains, Snowflake's stock is still down 35% in the year to date, compared to a gain of 24% in the broader S&P 500 index.

Snowflake jumps 16% after lifting revenue outlook, Q3 beat By Investing.com

Investing.com - Snowflake Inc (NYSE:SNOW) on Wednesday lifted its 2025 product revenue forecast on the back of data cloud demand and analytics platform as improving economic conditions are enabling clients to allocate more of their budgets to technology spending. Shares of the data cloud analytics firm jumped around 16% in aftermarket trading. The company now projects 2025 product revenue of $3.43 billion, compared with earlier issued forecast of $3.36 billion. Snowflake's data cloud continues to see robust adoption, particularly among enterprises leveraging AI-powered tools to manage and analyze vast datasets. For the third quarter, Snowflake reported per share profit of $0.20, 5 cents better than the analyst estimate of $0.15. Revenue for the quarter came in at $942.1 million, ahead of the consensus estimate of $899.3 million. In a further boost to its AI strategy, Snowflake announced a multi-year partnership with Anthropic to integrate its Claude models for data analysis. The company also completed the acquisition of Datavolo as part of its AI expansion efforts. Snowflake has been advancing its AI capabilities through the development of AI agents via its Snowflake Intelligence platform. AI agents are seen as the next step beyond copilots, capable of handling routine tasks independently on behalf of a person.

Webush upgrades Snowflake, Elastic to Outperform on AI optimism By Investing.com

Investing.com-- Wedbush upgraded its rating on software firms Snowflake and Elastic , citing increased optimism over their exposure to the rapidly growing artificial intelligence industry, especially on an enterprise level. Webush upgraded both Snowflake Inc (NYSE:SNOW) and Elastic NV (NYSE:ESTC) to Outperform from Neutral. The brokerage also hiked its price targets on software majors Palantir Technologies Inc (NYSE:PLTR) and Salesforce Inc (NYSE:CRM). For Snowflake, Wedbush said it expects to see "marked improvement" in product revenues before an AI-fueled 2026. The cloud firm is in a "sweet spot" to benefit from AI use cases in the next 12 to 18 months, Wedbush said. For Elastic, Wedbush said the cloud firm was likely to benefit from increased demand for its platform approach to cloud computing, especially with more customers looking to pivot from legacy vendors. Cloud firms are expected to benefit from the rapidly growing computational requirements of AI programs, especially given that most AI users will be unwilling to set up their own AI server infrastructure. Both Snowflake and Elastic clocked strong earnings last week, driving their stock prices to multi-month highs. Wedbush hiked its price target on Palantir to $75 from $57, citing increased confidence in the firm's AI as a platform strategy, as well as exposure to increased use cases for AI. The stock is rated as Outperform. For Salesforce, Wedbush hiked its price target to $375 from $325 and maintained the stock at Outperform. The brokerage said it saw increased demand for Salesforce's offerings, especially on the AI front.

Snowflake Q3 Earnings: Revenue Beat, EPS Beat, Guidance Raise, AI Acquisition, Anthropic Partnership And More - Snowflake (NYSE:SNOW)

Snowflake reports third-quarter adjusted earnings of 20 cents per share, beating analyst estimates of 15 cents per share. Snowflake Inc SNOW reported third-quarter financial results after the market close on Wednesday. Here's a rundown of the report. Q3 Earnings: Snowflake reported third-quarter revenue of $942.09 million, beating the consensus estimate of $896.99 million. The data cloud company reported adjusted earnings of 20 cents per share, beating analyst estimates of 15 cents per share, according to Benzinga Pro. Total revenue was up 28% year-over-year. Product revenue came in at $900.3 million, up 29% year-over-year. Net revenue retention rate was 127% in the quarter. Remaining performance obligations totaled $5.7 billion, up 55% year-over-year. Snowflake said it ended the quarter with 542 customers with trailing 12-month product revenue greater than $1 million. "Our obsessive drive to produce product cohesion and ease of use has built Snowflake into the easiest and most cost-effective enterprise data platform. That is what's leading us to win new logo after new logo, expand within our customer base, and displace our competition over and over again," said Sridhar Ramaswamy, CEO of Snowflake. Don't Miss: Walmart Posts Q3 Sales Beat, Raises Guidance: Analysts Expect Strong Earnings Growth Ahead Outlook: Snowflake expects fourth-quarter product revenue in the range of $906 million to $911 million, up approximately 23% year-over-year. The company also raised its full-year product revenue guidance from $3.356 billion to $3.43 billion, representing 29% year-over-year growth. Management will hold a call to further discuss the quarter with analysts and investors at 5 p.m. ET. What Else: Snowflake announced it signed a definitive agreement to acquire enterprise AI company Datavolo. Snowflake expects the acquisition to help the company simplify data engineering workloads and deliver data interoperability and extensibility, a building block for effective enterprise AI. Snowflake also announced a strategic multi-year partnership with AI data cloud company Anthropic, which is backed by Amazon.com Inc AMZN. The partnership is expected to help enable global enterprises develop and scale easy, efficient and trusted AI products. Snowflake said Anthropic's newest Claude 3.5 models will be available to leverage within Snowflake Cortex AI on Amazon Web Services. "Our partnership with Anthropic represents a massive leap forward in expanding on our promise to provide thousands of global customers with easy, efficient, and trusted AI for a holistic set of enterprise use cases," said Christian Kleinerman, executive vice president of Product at Snowflake. "By bringing Anthropic's industry-leading models to customers' enterprise data where it already lives, within the security and governance boundaries of the AI Data Cloud, we will unleash new ways for businesses to harness this data for agentic use cases, coding assistants, document chatbots, unstructured data analytics, and more." SNOW Price Action: Snowflake shares were down about 34% year-to-date heading into the print. The stock was up 18.65% in after-hours, trading at $153.23 at the time of publication Wednesday, according to Benzinga Pro. Photo: Shutterstock. Market News and Data brought to you by Benzinga APIs

Snowflake raises annual product revenue forecast, announces AI deal with Anthropic

(Reuters) - Snowflake on Wednesday raised its annual product revenue forecast, betting on robust demand for its data cloud and analytics platform, and announced a partnership with artificial intelligence firm Anthropic. Shares of the company jumped around 13% in extended trading. The company now expects product revenue of $3.43 billion for 2025, compared with its previous forecast of $3.36 billion. Snowflake's data cloud has been seeing strong adoption from enterprises looking to use AI-powered services to organize swathes of data. The company on Wednesday also announced a multi-year partnership with Anthropic to let its customers use the AI firm's large language models to develop and enhance their own AI applications. (Reporting by Zaheer Kachwala in Bengaluru; Editing by Shilpi Majumdar)

Here's Why Snowflake Stock Popped Again Today | The Motley Fool

Last week, data company Snowflake (SNOW 5.46%) reported financial results for its fiscal third quarter of 2025. The market responded favorably to the report as evidenced by a big jump in Snowflake's stock price. Today, the price is rising yet again, with Snowflake stock up 4% as of 10 a.m. ET. But it had been up more than this earlier in the day. This morning, Wedbush analyst Dan Ives published a report stating that artificial intelligence (AI) is starting to revolutionize the software space and noted that Snowflake is a big beneficiary, according to The Fly. This motivated him to recommend buying Snowflake stock and to give it a price target of $190 per share, which still represents about 9% upside from today's price. Drawing a connection between Snowflake and the potential of AI isn't new. In fact, the company used to call itself merely "the Data Cloud company." But at the start of its fiscal 2025 in February, it reworked its description to "the AI Data Cloud company." That said, AI potential hasn't exactly manifested itself in Snowflake's financial results. As the chart below shows, the company's growth rate has continued decelerating even as the AI space is heating up. However, the latest earnings season did show that AI products and tools are catalyzing growth for various software companies. And for this reason, Ives is highlighting multiple companies that stand to benefit, including Snowflake, which is why the stock popped today. Snowflake CEO Sridhar Ramaswamy started the Q3 earnings call by saying, "Our AI feature family Snowflake Cortex is showing significant adoption." And while the revenue growth rate still ticked lower, the claim can be backed up nevertheless. Like many software companies, Snowflake's customers pay for the software up front and then use it up over the life of the contract. This revenue under contract is known as Snowflake's remaining performance obligations. Q3 obligations jumped to $5.7 billion, which was a massive 55% year-over-year jump. Therefore, there is substance behind Ives' bullishness and investors are understandably optimistic.