This article first appeared on GuruFocus.
Snowflake (NYSE:SNOW) slid about 10% after issuing a fourth-quarter product revenue forecast that exceeded analyst estimates but fell short of the stronger growth investors had been hoping for.
The company projected $1.19 billion to $1.20 billion in product revenue, pointing to roughly 27% growth. While the range was slightly above the $1.18 billion expected by analysts, the pace appeared modest to some shareholders following the stock’s sharp gains this year.
Snowflake posted quarterly revenue of $1.21 billion, topping market forecasts. The firm continued to build out its artificial-intelligence ecosystem, signing a multi-year $200 million deal with Anthropic to embed Claude models for advanced reasoning and multi-step analysis on its platform.
It also expanded collaborations with Accenture and rolled out new integrations with Amazon Web Services after surpassing $2 billion in AWS Marketplace sales. The company is working with Google’s Gemini AI and other model providers to help customers develop and run AI applications directly on Snowflake-managed data.
