Snowflake (SNOW, Financial) just dropped a bombshell, and Wall Street couldn't look away. Shares skyrocketed over 30% on Thursday—its best single-day gain since going public in 2020. What sparked the frenzy? A juiced-up product revenue forecast of $3.43 billion for fiscal 2025, up from $3.36 billion. And that's not all: Snowflake unveiled a game-changing partnership with Anthropic, letting customers supercharge AI applications with state-of-the-art language models directly on its cloud platform. New CEO Sridhar Ramaswamy, the brain behind Snowflake's AI pivot, is proving he's not just running the playbook—he's rewriting it.
The company's fiscal Q3 numbers are hard to ignore: product revenue surged 29% to $900.3 million, while remaining performance obligations—a juicy pipeline of future revenue—shot up 55% to $5.7 billion. With a net revenue retention rate of 127%, Snowflake isn't just acquiring new clients; it's squeezing more value from existing ones. Major players like the Forbes Global 2000 are doubling down, drawn to Snowflake's pitch-perfect balance of simplicity and cost-effectiveness. Analysts have taken the hint—20 hiked their price targets, with a median projection of $185 signaling a potential 43% upside.
But here's where it gets exciting for investors. Snowflake's AI-first strategy isn't just a buzzword; it's a growth engine. The Anthropic deal is more than a headline—it's a glimpse into a future where AI integrates seamlessly into enterprise data platforms. This isn't about chasing trends; it's about leading them. With a market cap now flirting with $56.4 billion and the new leadership firing on all cylinders, Snowflake is making it clear: they're not just in the game—they're changing it. Investors, take note.
