Snowflake, the leading AI data cloud company, saw its stock surge over 10% in after-hours trading on Thursday following the company's impressive fourth-quarter results and the announcement of an expanded partnership with Microsoft.

In its Q4 earnings report, Snowflake delivered strong financial performance, exceeding Wall Street's expectations across key metrics. The company reported:

• Product revenue of $943.3 million, up 28% year-over-year, beating analysts' estimates of $914 million.

• Total revenue of $986.8 million, a 27% increase from the previous year, surpassing the consensus estimate of $956.9 million.

• Adjusted earnings per share of $0.30, significantly higher than the expected $0.17.

Looking ahead, Snowflake provided an optimistic outlook for fiscal 2026, forecasting product revenue growth of 24% to $4.28 billion, exceeding analysts' projections of $4.21 billion.

Fueling Snowflake's bullish prospects is its expanded strategic partnership with Microsoft. Under this agreement, Snowflake's Cortex AI platform will securely integrate OpenAI's cutting-edge models through Microsoft's Azure OpenAI Service. This integration will enable Snowflake's enterprise customers to leverage OpenAI's state-of-the-art language models and AI capabilities within the secure and scalable Snowflake data cloud.

Additionally, Snowflake announced plans to make its Cortex Agents available within Microsoft 365 Copilot and Microsoft Teams, streamlining access to AI-driven insights and improving productivity across the enterprise.