SNOW 3Q25: 3Q25 Fully In Line With Our Expectations, 4Q25 Reaccelerating, But OPM Brings New Concerns

Snowflake’s 3Q25 results were completely in line with our expectations. In our Preview, we specifically analyzed why we believed 3Q25 results might miss the Bogey, but 4Q25 would see acceleration.

3Q25 revenue grew 29% year-over-year, the smallest beat margin in the past year, with a 2.5% beat < typical 3% beat. Especially after DDOG and MDB results, the market front-ran Snowflake’s 3Q25 beat, which also caused further sell-off after hours.

However, the 4Q26 guidance of 27% year-over-year growth, assuming a typical 3% beat, implies 30-31% year-over-year growth, still consistent with an acceleration trend.

This aligns with what we mentioned in our 3Q25 Preview—SNOW faced multiple factors in 3Q25 that led to deceleration and might not achieve a typical beat:

• 2Q25 One-off Migration

• Gen2 optimization

• Snowpark consumption delay from Snowpark Connect

• AI Labs optimization