Snowflake Inc. (NYSE: SNOW) shares soared 11.13% in after-hours trading on Wednesday, following the company's impressive fourth-quarter results and the announcement of an expanded partnership with Microsoft to integrate OpenAI's AI models into its platform.
For the fourth quarter of fiscal 2025, Snowflake reported product revenue of $943.3 million, beating analyst estimates of $955.93 million. The company's adjusted earnings per share came in at $0.30, significantly higher than the consensus estimate of $0.17. Looking ahead, Snowflake forecasted annual product revenue for fiscal 2026 to be $4.28 billion, exceeding analysts' expectations of $4.21 billion.
The company's strong performance was further boosted by its strategic partnership with Microsoft. Snowflake will securely integrate Microsoft's Azure OpenAI Service, providing customers with direct access to the latest OpenAI models within Snowflake's AI platform, Cortex AI. This integration aims to empower enterprises to build AI-powered applications and data agents more easily, efficiently, and with greater trust, leveraging their proprietary data while benefiting from OpenAI's advanced language models.
Additionally, Snowflake announced plans to make its Cortex Agents available within Microsoft 365 Copilot and Microsoft Teams, enabling users to interact with their structured and unstructured data in Snowflake using natural language queries directly from these Microsoft applications. This collaboration aims to streamline access to AI-driven insights and improve productivity across the enterprise.
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