Snowflake (SNOW) earnings report for the third quarter of 2025

Snowflakes shares rose 19% in extended trading Wednesday after the data analytics software maker reported third-quarter earnings that beat estimates.

Here’s how the company fared compared to LSEG analysts’ expectations:

• Earnings per share: 20 øre, adjusted against the expected 15 øre
• Income: $942 million versus $897 million expected

Snowflake’s revenue rose 28% year over year in the quarter ended Oct. 31, according to a declaration. The company’s net loss of $324.3 million, or 98 cents per share, increased from $214.3 million, or 65 cents per share, in the year-ago quarter.

Product revenue accounted for around 96% of total sales. Snowflake claimed $3.43 billion in product revenue by 2025, implying growth of 29%. That’s higher than the $3.36 billion forecast management gave three months ago.

The full-year overview also includes an adjusted profit margin of 5%, up from 3% guidance in August.

Snowflake is focusing more on saving money, CEO Sridhar Ramaswamy told analysts on a conference call.

“We have created centralized, more efficient teams for some areas and removed redundant management layers, enabling us to make decisions faster,” he said.

But the company is not making a major round of layoffs, Chief Financial Officer Mike Scarpelli said.

Snowflake had 10,618 customers at the end of October, after adding 369 in the most recent quarter. Analysts polled by StreetAccount had expected 10,601 customers.

While the U.S. government is a very small part of Snowflake’s business today, Scarpelli said there are opportunities for growth.

“We feel good about what we’re doing, and we think there’s a lot of upside in the federal space over the next few years,” Scarpelli said. In September snowflakes announced it had acquired Night Shift Development, a company targeting the public sector in the United States

For years, Snowflake has competed with cloud providers such as Amazon and Microsoftbut they are also key partners that provide the company with underlying computing resources.

“Through our collaboration with AWS, we have booked over $3.9 billion over the last four quarters,” said Ramaswamy.

Also on Wednesday, Snowflake announced a multi-year partnership with Anthropic, the Amazon-backed artificial intelligence startup and OpenAI competitor. It also said it had agreed to buy the startup Data volo for an undisclosed amount.

As of Wednesday’s close, Snowflake’s stock was down 35% so far in 2024, while the S&P 500 index was up 24%.

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