Snowflake (SNOW) Third Quarter 2025 Earnings Report

Snowflake shares soared 32% on Thursday, capping its best day since the company’s 2020 IPO, after the data analytics software maker reported third-quarter financial results that beat estimates.

Here are the company’s results, compared to LSEG analysts’ expectations:

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

Snowflake’s revenue grew 28% year over year in the quarter ended Oct. 31, according to a release. The company’s net loss of $324.3 million, or 98 cents per share, widened from $214.3 million, or 65 cents per share, in the same quarter a year earlier.

Product revenue accounted for approximately 96% of total sales. Snowflake claimed $3.43 billion in product revenue for fiscal 2025, implying 29% growth. That’s an increase from the $3.36 billion guidance provided by management three months ago.

The full-year forecast also includes an adjusted operating margin of 5%, up from the 3% forecast in August.

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

“We have created centralized, more efficient teams for certain areas and removed redundant layers of management, allowing us to make decisions more quickly,” he said.

But the company isn’t making a round of major layoffs, Chief Financial Officer Mike Scarpelli said.

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

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

“We’re happy with what we’re doing and we think there’s a lot of potential in the federal realm over the next couple of years,” Scarpelli said. In September, Snowflake announced the acquisition of 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 who provide the business with underlying IT resources.

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

Also on Wednesday, Snowflake announced a multi-year partnership with Anthropic, the AmazonArtificial intelligence startup backed by OpenAI and competitor to OpenAI. He also announced that he had agreed to buy the start-up Datavolo for an undisclosed amount.

Snowflake stock closed up 32%, while the S&P 500 closed up 0.5%.

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