Dive Brief:
- Snowflake revenues grew 28% year over year to $942 million as customer data consumption rates increased, during the three-month period ending Oct. 31.
- Product revenue, a consumption metric tied to cloud compute, storage and data transfer services, was $900 million compared to just under $700 million last year, according to the earnings announcement. The data cloud provider expects growing AI demand to drive full-year product revenues up by 29% to $3.43 billion.
- “There's a very long runway because analytics flows over seamlessly and fluidly into things like machine learning,” CEO Sridhar Ramaswamy said during a Q3 2025 earnings call Wednesday. "AI then becomes even more of an accelerant because you can now go from unstructured data to structured data very, very easily."
Dive Insight:
Machine learning, large language models and generative AI tools are data-driven technologies. As enterprises invest in data readiness, Snowflake built out its storage and analytics capabilities and added generative AI to its menu of data services.
The technology eases ML operations that used to require a team of data scientists, Ramaswamy said. A lot of Snowflake’s AI consumption stems from customers using a single SQL statement to carry out sentiment detection or summarization across millions of data points, he said.
“At this point, that’s a piece of SQL that someone out of college can write in five minutes,” Ramaswamy added.
Snowflake elevated Ramaswamy to CEO in February. He previously served as SVP of AI, a position he took last year when Snowflake acquired Neeva, the AI search engine startup he co-founded after 15 years at Google.
The company deepened its AI bench this week with the acquisition of data integration platform provider Datavolo, announced Wednesday.
“Datavolo strengthens our foundation to deliver an extensible and flexible connectivity platform for unstructured as well as structured data,” Ramaswamy said during the earnings call. “It accelerates our ability to bring in and vastly simplify data engineering workloads.”
Snowflake expanded partnerships with Microsoft and Anthropic on Tuesday and Wednesday respectively.
The Microsoft alliance connects Snowflake’s AI Data Cloud with the software and cloud provider’s Dataverse agentic AI tool builder, Power Platform low-code service and Dynamics 365 productivity suite.
The multiyear Anthropic strategic partnership centers around the AI vendor’s Claude model family. Snowflake will deploy Claude 3.5 Sonnet with security and governance parameters of the Snowflake Cortex AI service on AWS. Snowflake will also build agentic AI tools for its customers using Claude, the companies said in an announcement.
“There is a very large opportunity for Snowflake to help our customers act on all of their data, not just the ‘gold’ data that they used to put into Snowflake for analytics,” Ramaswamy said.
