Snowflake shares fall 7.9% after-hours as weaker-than-expected Q4 revenue growth and margin forecast disappoint investors.

Snowflake (SNOW) fell 7.91% in after-hours trading following a weaker-than-expected Q3 earnings report and outlook. The company reported strong quarterly revenue of $1.21 billion (up 29% YoY) and a $200 million multi-year AI partnership with Anthropic, but its Q4 product revenue guidance of $1.19–$1.20 billion implied only 27% growth, below the 32% pace in the prior quarter. Investors appeared disappointed by the moderated growth trajectory and a revised adjusted operating margin forecast of ~7%, lower than the 8.5% analysts had anticipated. Despite beating earnings estimates and expanding AI integrations, the stock reacted poorly to the margin concerns and subdued growth expectations, reflecting heightened scrutiny of profitability amid its 70% year-to-date rally.