Snowflake pre-market fell nearly 9%, with the operating profit margin outlook lower than expected.

Snowflake pre-market fell 8.93% to $241.33. On the news front, Snowflake reported better-than-expected third quarter earnings on Wednesday, but the company's provided operating profit margin outlook was lower than analysts' expectations, and its product revenue forecast failed to meet investors' expectations for higher growth rates, sparking concerns among investors about the profitability of its new AI tools. According to the financial report, in the third quarter ending on October 31, the company's revenue was $1.21 billion, higher than the estimated $1.18 billion; adjusted earnings per share were 35 cents, higher than the estimated 31 cents. Looking ahead, the company expects an adjusted operating profit margin of approximately 7% for the fourth quarter ending in January, lower than the analysts' average expectation of 8.5%.