Snowflake Posts 45% Revenue Growth, Guides Q4 Below Estimates, Unveils AI Governance
Snowflake’s fiscal Q3 revenue climbed 45% year-over-year to $1.12 billion, surpassing consensus by $25 million, and non-GAAP EPS of $0.24 beat estimates by $0.04. The company forecasted Q4 revenue of $1.28 billion to $1.30 billion, below analysts’ $1.35 billion consensus, as it accelerates rollout of new AI governance features.
1. Earnings Beat and Revenue Growth
Snowflake reported fiscal Q3 revenue of $1.12 billion, up 45% year-over-year and $25 million above consensus. Non-GAAP EPS reached $0.24, beating analysts’ $0.20 forecast and marking its eighth consecutive quarter of profit beats.
2. Guidance and Market Reaction
Management projected Q4 revenue between $1.28 billion and $1.30 billion, below the $1.35 billion analysts expected, citing slower enterprise spending. Shares fell 5% in after-hours trading on concerns over decelerating subscription growth.
3. AI Product Push
The company highlighted its new AI governance features aimed at enterprise clients, with a planned rollout in Q2 to monetize generative AI workloads. Leadership emphasized partnerships with cloud providers to integrate AI data-sharing capabilities across Snowflake’s platform.