Snowflake Inc (NYSE:SNOW) stock fell 11.34% (As on December 4, 11:34:10 AM UTC-4, Source: Google Finance) after the company forecast fourth-quarter product revenue above analysts’ estimates but falls short of lofty investor expectations for stronger growth. Snowflake expanded its partnerships to strengthen its agentic AI and cloud ecosystem, announcing a multi-year $200 million agreement with Anthropic to bring Claude models to its platform for advanced reasoning and secure multi-step analysis. As part of the deal, Anthropic will make its Claude family of large language models available in the Snowflake marketplace, expanding its potential reach to more than 12,600 enterprises globally.

Further, the company also deepened ties with Accenture to help enterprises scale generative AI innovation, and unveiled new integrations with Amazon Web Services after surpassing $2 billion in sales on the AWS Marketplace this year. The Bozeman, Montana-based company is similarly working with Google’s Gemini AI and other partners to embed large language models into its tools so customers can build and run AI applications directly on Snowflake-managed data.

SNOW in the third quarter of FY26 has reported the adjusted earnings per share of 35 cents, beating the analysts’ estimates for the adjusted earnings per share of 31 cents. The company had reported the adjusted revenue growth of 29 percent to $1.21 billion in the third quarter of FY26, beating the analysts’ estimates for revenue of $1.18 billion. Snowflake also reported product revenue of $1.16 billion in the quarter, surpassing the Street’s consensus estimate of $1.13 billion. It ended the quarter with a net loss of $291.6 million, improving from a year earlier, when it lost $327.9 million. Remaining performance obligations, which refers to contracted revenue that has not yet been realized, rose 37% from a year earlier to $7.88 billion, above the analyst forecast of $7.43 billion.

The cloud data analytics firm, whose shares have surged more than 70% this year, expects product revenue of $1.19 billion to $1.20 billion for the fourth quarter, representing 27% growth. The forecast was above analysts’ estimates of $1.18 billion, according to data compiled by LSEG. For the full year, it’s looking for $4.45 billion in product revenue. Analysts are forecasting just $4.41 billion in annual product revenue. However, analysts suggested that the figures were not enough to live up to lofty expectations fueled by a more than 68% gain in Snowflake’s share price so far this year. The analysts at D.A. Davidson suggested that, given the steep appreciation in the stock, investors were anticipating “guidance of more than 30%.”