Snowflake (NYSE: SNOW) shares surged over 10% in pre-market trading on Thursday after the AI Data Cloud company reported fourth-quarter earnings that blew past analyst expectations. The company also unveiled an expanded partnership with Microsoft (NASDAQ: MSFT) to weave OpenAI models into its platform, boosting investor excitement.
The Montana-based firm posted adjusted earnings per share of $0.30, easily beating the Wall Street consensus of $0.17. Revenue for the quarter reached $986.8 million, topping the expected $956.22 million and showing a healthy 27% increase compared to the same period last year.
Product revenue—a critical gauge of its growth—climbed 28% year-over-year to $943.3 million. The company also boasted a net revenue retention rate of 126% as of January 31, 2025, signaling strong customer loyalty and expansion.
“We delivered another strong quarter, with product revenue of $943 million, up a strong 28% year-over-year,” said Sridhar Ramaswamy, CEO of Snowflake. “Today, Snowflake is the most consequential data and AI company in the world.”
The company’s customer base continues to grow, with 580 clients now generating over $1 million in trailing 12-month product revenue—a 27% increase from last year. Snowflake also serves 745 Forbes Global 2000 companies, up 5% from a year ago.
For the first quarter, Snowflake forecasts product revenue to grow between 21% and 22% compared to last year, projecting a range of $955 million to $960 million.
On top of the earnings beat, Snowflake (NYSE: SNOW) announced a beefed-up collaboration with Microsoft. The partnership integrates OpenAI’s models into Snowflake Cortex AI, its fully managed AI service, via Microsoft Azure AI Foundry.
