Snowflake Beats Q4 Estimates, Expands Microsoft Partnership To Include OpenAI Models

Snowflake, Inc. SNOW reported its fourth-quarter results after Wednesday's closing bell. Here's a look at the key figures from the report. 

The Details: Snowflake reported quarterly earnings of 30 cents per share, which beat the analyst consensus estimate of 17 cents. Quarterly revenue of $986.77 million beat the analyst consensus estimate of $955.93 million and is an increase over revenue of $774.7 million from the same period last year.

Read Next: Tesla Competes Against Chinese Rivals ‘With One Hand Tied Behind Its Back’: Analyst

For the fourth quarter, Snowflake reported:

• Product revenue of $943.3 million, representing 28% year-over-year growth
• Net revenue retention rate of 126%
• 580 customers with trailing 12-month product revenue greater than $1 million
• 745 Forbes Global 2000 customers
• Remaining performance obligations of $6.9 billion, representing 33% year-over-year growth

Snowflake also announced an expanded partnership with Microsoft Corp. MSFT that integrates Microsoft OpenAI service, providing access to OpenAI’s models.

“We delivered another strong quarter, with product revenue of $943 million, up a strong 28% year-over-year, and remaining performance obligations totaling $6.9 billion,” said Sridhar Ramaswamy, CEO of Snowflake.

“Today, Snowflake is the most consequential data and AI company in the world. More than 11,000 customers are already betting their business on our easy-to-use, efficient, and trusted platform. We see tremendous opportunities ahead to support our customers throughout their end-to-end data lifecycle, and we are laser-focused on delivering on this vision,” Ramaswamy added.

Outlook: Snowflake sees first-quarter revenue in a range of $955 million to $960 million, versus the $1 billion estimate. The company sees fiscal 2026 revenue of $4.28 billion, versus the $4.41 billion estimate.

SNOW Price Action: According to data from Benzinga Pro, Snowflake shares are up 9.27% after-hours at $181.60 on Wednesday.  

Read Next: 

• Mortgage Rates Drop To Lowest Levels Since December, But Housing Market Remains ‘Largely Stuck’ 

Image: Shutterstock