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Snowflake raises annual product revenue forecast, announces AI deal with Anthropic

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(Reuters) -Data cloud and analytics provider Snowflake (NYSE:SNOW) on Wednesday raised its annual product revenue forecast and announced a multi-year partnership with AI firm Anthropic, sending its shares surging around 15% in extended trading.

Snowflake’s data cloud has been seeing strong adoption from enterprises looking to use artificial intelligence-powered services to organize swathes of data.

Like other tech firms such as Salesforce (NYSE:CRM) and Microsoft (NASDAQ:MSFT), Snowflake is also pursuing the development of AI agents using its Snowflake Intelligence platform. Autonomous agents are considered to be the evolution of a copilot, which can perform routine tasks on behalf of a person.

The company’s partnership with Anthropic would allow its customers use the AI firm’s large language models to develop and enhance their own AI applications.

With Anthropic’s technology, Snowflake’s AI agents will be able to deeply analyze data and generate visualizations, among other functions.

Snowflake expects product revenue of $3.43 billion for 2025, compared with its previous forecast of $3.36 billion.

The company forecast its fourth-quarter product revenue to be between $906 million and $911 million, the midpoint of which is above analysts’ average estimate of $884.5 million, according to data compiled by LSEG.

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