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    Did Snowflake’s AI Partnerships and Q3 Results Just Shift Snowflake's (SNOW) Investment Narrative?

    Simply Wall St·12/13/2025 22:21:43
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    • In recent weeks, Snowflake reported third-quarter fiscal 2026 results with revenue of US$1,212.91 million, narrowed losses, and reaffirmed strong free cash flow guidance, while also expanding its AI ecosystem through a US$200 million multi-year Anthropic partnership, a new Accenture Snowflake Business Group, and Collibra joining its Open Semantic Interchange initiative.
    • Together, these moves deepen Snowflake’s role as an AI data infrastructure hub, aiming to keep enterprise data, governance, and advanced AI models tightly integrated within a single, cloud-based platform.
    • We’ll now explore how the expanded Anthropic partnership and enterprise AI focus influence Snowflake’s existing investment narrative and long-term potential.

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    Snowflake Investment Narrative Recap

    To own Snowflake, you need to believe it can stay at the center of enterprise AI and data workloads while scaling toward meaningful profitability. The latest AI partnerships and Q3 results support that thesis but do not materially change the near term tension between strong free cash flow guidance and worries about slowing core product growth and rising competitive pressure.

    The expanded US$200 million multi year Anthropic agreement stands out here, because it ties Snowflake’s AI agents and Snowflake Intelligence directly to governed customer data, reinforcing one of the key growth catalysts: deeper AI driven usage on the existing platform, rather than just one off migration spikes.

    Yet despite this progress, investors should also be aware that rising competition and pricing pressure from hyperscalers could...

    Read the full narrative on Snowflake (it's free!)

    Snowflake's narrative projects $7.8 billion revenue and $497.5 million earnings by 2028. This requires 23.8% yearly revenue growth and an earnings increase of about $1.9 billion from -$1.4 billion today.

    Uncover how Snowflake's forecasts yield a $281.73 fair value, a 29% upside to its current price.

    Exploring Other Perspectives

    SNOW 1-Year Stock Price Chart
    SNOW 1-Year Stock Price Chart

    Twelve Snowflake fair value estimates from the Simply Wall St Community span roughly US$153 to US$282, showing how differently you can judge the same stock. Against that backdrop, the growing importance of AI driven workloads on Snowflake’s platform could be pivotal for how those expectations around future revenue growth evolve.

    Explore 12 other fair value estimates on Snowflake - why the stock might be worth as much as 29% more than the current price!

    Build Your Own Snowflake Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.