In its fiscal third quarter ended October 31, Snowflake reported total revenue of $1.13 billion, up 29% year-over-year, driven by strong demand for its AI Data Cloud platform. Subscription revenue accounted for $1.04 billion, a 30% increase from the prior year period. The company added 210 customers with annual contract values above $1 million, bringing the total of large-ACV customers to 523. Executives highlighted that products launched over the past twelve months—such as the Native Application Framework and unistore capabilities—contributed over 15% of new subscription bookings in the quarter, signaling growing adoption of Snowflake’s AI-centric offerings.

On January 8, Snowflake signed a definitive agreement to acquire Observe, a provider of AI-powered observability built on open standards, subject to customary closing conditions. Once integrated into the Snowflake AI Data Cloud, Observe’s platform is expected to enable customers to resolve production issues up to ten times faster than with traditional monitoring tools. Management projects that the combined solution will support full telemetry retention at petabyte scale with cost reductions of up to 40% over legacy systems, reinforcing Snowflake’s position in the enterprise AI infrastructure market.

Snowflake continues to broaden its go-to-market reach through expanded collaborations with hyperscalers. In Q3, the company announced new joint engineering initiatives with Microsoft Azure and Google Cloud aimed at optimizing GPU-accelerated workloads and federated data sharing. Snowflake now operates in 24 regions worldwide, up from 18 a year earlier, and expects to add four more regions by mid-year. These partnerships and geographic investments are designed to reduce data egress fees by an estimated 20% for multi-cloud customers and to accelerate international sales growth, which grew 38% in the quarter.