By Elias Schisgall

Snowflake narrowed its loss and reported revenue growth in the fourth quarter as the company looks to artificial-intelligence to drive its business.

The cloud storage company on Wednesday reported a loss of $309.6 million, or 90 cents a share, compared with a loss of $327.5 million, or 99 cents a share, a year earlier.

Stripping out certain one-time items, the company reported earnings of 32 cents a share, ahead of analysts' estimates of 27 cents a share, according to FactSet.

Revenue rose to $1.28 billion, up from $986.8 million a year earlier. Analysts surveyed by FactSet were expecting $1.26 billion in revenue.

Product revenue, which makes up 96% of the company's total revenue, was $1.23 billion.

The company, which in December signed a $200 million deal with Anthropic to boost deployment of AI agents on its platform, said its AI features are expanding workloads and broadening the user base.

"For over a decade, we've built the foundation that makes AI safe and scalable - a single source of truth, cross-cloud interoperability, and enterprise-grade governance," Chief Executive Sridhar Ramaswamy said. "Now, we're activating world-class agentic capabilities on top of that platform."

For the current first quarter, the company is projecting product revenue growing 27% to between $1.26 billion and $1.27 billion. Analysts were targeting revenue of $1.31 billion, according to FactSet.

Snowflake is expecting full-year product revenue of about $5.66 billion, representing 27% year-over-year growth. Analysts were targeting $5.79 billion.

Shares fell 3.1% to $164.00 in after-hours trading Wednesday.

Write to Elias Schisgall at elias.schisgall@wsj.com

(END) Dow Jones Newswires

Snowflake posted a narrower fourth-quarter loss. "Snowflake Posts Higher 4Q Profit, Revenue" at 4:31 p.m. ET, incorrectly said the company posted a higher profit in the original headline.

(END) Dow Jones Newswires

February 25, 2026 17:46 ET (22:46 GMT)

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