Snowflake increased its annual product-revenue forecast after enterprise customers boosted spending on artificial intelligence and migrated more data workloads to the company’s cloud platform. The announcements sent the company’s shares sharply higher in after-hours trading.
Quarterly results and guidance
Snowflake reported first-quarter revenue of $1.39 billion, above analysts’ consensus of $1.32 billion. For the second quarter, the company guided product revenue of $1.415–1.42 billion, compared with a $1.37 billion analyst consensus. Following the results and outlook, Snowflake’s shares rose 36% in after-hours trading; overall the stock jumped roughly 37% on the news.
Five-year, $6 billion AWS agreement
Snowflake signed a five-year, $6 billion agreement with Amazon Web Services (AWS). Under the deal, Snowflake will gain access to AWS Graviton processors and AWS’s AI infrastructure. The partnership enables deeper product integration for generative and agent-based artificial intelligence, includes joint sales via the AWS Marketplace, and covers migration of data-processing workloads.
The stated aim is to help companies move smoothly from AI experimentation to everyday production use.
Raised full-year forecast and growth drivers
Snowflake lifted its fiscal 2027 product-revenue outlook from $5.66 billion to $5.84 billion. CEO Sridhar Ramaswamy said the increase reflects both strong performance in the core data platform business and meaningful incremental revenue from AI services.
Growth is being driven by rising demand for enterprise data-warehouse services, migration away from legacy IT systems, and the broader adoption of machine-learning tools. Snowflake’s own offerings, including Cortex Code and Snowpark, have also been well received by customers.
Market impact and note
The announcements pushed Snowflake’s shares up about 36–37%. This article is not investment advice.
Source: Reuters. The featured image is illustrative; source: Getty Images.
