Revenue Breaks $1 Billion for the First Time! Snowflake’s AI-Driven Stock Surge, but Faces Fierce Competition from Microsoft and Google

TradingKey—On Wednesday, after market hours in the Eastern Time Zone, Snowflake (NYSE: SNOW) reported in its fiscal 2025 Q4 earnings that quarterly revenue broke the $1 billion threshold for the first time, surging approximately 25% year-over-year to $1.04 billion—exceeding market expectations of $1.03 billion. Spurred by the upbeat results, the stock jumped roughly 7% in after-hours trading and has rebounded 37% from its April 2025 lows.

The earnings report revealed that product revenue in the first quarter grew 26 percent year-over-year to $996.8 million, above analysts' expectations of $966 million. At the same time, the company boosted its full-year product revenue guidance to $4.33 billion from $4.28 billion, a move that reflects management's confidence in the sustainability of market demand.

Since taking the helm at Snowflake in 2023, CEO Sridhar Ramaswamy has placed AI at the core of the company's strategy. He believes that the potential of corporate data assets remains largely untapped and that the proliferation of AI tools will fundamentally alter this landscape.

Snowflake is dedicated to simplifying customers’ use of large language models (LLMs) through its platform, notably launching Cortex AI services which allow clients to directly leverage third-party models like OpenAI for data processing.

Ramaswamy emphasized that AI tools will enable businesses to more efficiently utilize data when developing generative AI applications—a pivotal focus for Snowflake's future development.

Amidst intense competition from cloud infrastructure providers such as Databricks, Microsoft Azure Synapse, and Google BigQuery, Snowflake faces significant challenges. Notably, Microsoft's recent aggressive promotion of its Fabric data product suite has placed direct pressure on Snowflake.