Anthropic collaboration drives Snowflake surge

A new collaboration with Anthropic will enhance Snowflake’s AI capabilities, allowing enterprises to build custom applications.
Snowflake’s shares surged 19% after raising its revenue forecast and announcing a major AI partnership with Anthropic.

Snowflake has raised its annual product revenue forecast after announcing a multi-year partnership with AI firm Anthropic. The collaboration is designed to enhance Snowflake’s data cloud services by integrating Anthropic’s advanced AI models, which enable businesses to develop custom AI applications within secure environments. Shares of the data analytics company surged nearly 19% in extended trading after the announcement.

Snowflake’s platform has seen widespread adoption among enterprises seeking to leverage AI-powered solutions for data organisation and analysis. The partnership with Anthropic will also enable Snowflake’s AI agents to perform sophisticated tasks such as deep data analysis and visualisation. Analysts note that the move positions Snowflake as a strong competitor in the AI technology space.

The company outperformed expectations for the third quarter, reporting $942.1 million in total revenue, compared with estimates of $897 million. Product revenue reached $900.3 million, surpassing forecasts. Snowflake also reported an adjusted profit of 20 cents per share, exceeding analysts’ predictions of 15 cents.

Snowflake expects product revenue of $3.43 billion for fiscal 2025, up from its prior estimate of $3.36 billion. Fourth-quarter projections are also strong, with product revenue anticipated to be between $906 million and $911 million, above market expectations.