Snowflake Shares Drop 10% as Q4 Product Revenue Outlook Disappoints Despite Q3 Beat

Core Viewpoint - Snowflake's shares dropped over 10% intra-day after the company provided a fourth-quarter product revenue forecast that fell short of investor expectations, despite reporting better-than-expected results for the previous quarter [1]. Financial Performance - For the quarter ended October 31, Snowflake reported adjusted earnings of $0.39 per diluted share on revenue of $1.21 billion, surpassing analyst estimates of $0.35 per share on revenue of $1.18 billion [3]. Revenue Forecast - The company anticipates current-quarter product revenue between $1.195 billion and $1.200 billion, indicating approximately 27% year-over-year growth, while Wall Street had expected around $1.19 billion. Analysts noted that investors were hoping for guidance closer to 30% growth due to the stock's recent performance [2]. AI and Partnerships - Snowflake's AI-led products are driving customer acquisitions as businesses seek to leverage automation and advanced analytics. The company has established partnerships with major technology firms, including Anthropic, Amazon Web Services, and Google's Gemini AI platform, to meet the increasing demand for AI tools and cloud-based data infrastructure [4].