Snowflake soars 40% after earnings beat, $6B AWS pact

Snowflake Inc. shares jumped about 40% on May 28 after the company reported fiscal first-quarter 2027 results that beat consensus estimates, raised product revenue guidance and disclosed a five-year, $6 billion cloud commitment with Amazon Web Services.

Revenue for the quarter was $1.39 billion, up 33% year over year and above the $1.32 billion consensus. Product revenue rose 34% to $1.33 billion, which the company described as Snowflake’s largest sequential dollar increase. Non-GAAP earnings were $0.39 per share versus a $0.32 consensus. Net revenue retention was 126% and remaining performance obligations increased 38% to $9.21 billion.

Management raised full-year fiscal 2027 product revenue guidance to $5.84 billion, implying about 31% growth from an earlier outlook of roughly 27%.

Snowflake signed a five-year, $6 billion agreement with Amazon Web Services that covers AWS Graviton processors for general workloads and GPU-accelerated EC2 instances for AI model training. The agreement expands joint work on workload migrations and sales through the AWS Marketplace, where Snowflake has recorded more than $7 billion in lifetime sales.

Snowflake intends to acquire Natoma, a platform based on the Model Context Protocol for governing AI agents. The company expects the acquisition to extend governance from data assets to the actions and interactions performed by AI agents across the enterprise. CEO Sridhar Ramaswamy wrote on X that, once closed, users would be able to enrich Snowflake data with application context and ‘take action directly from Snowflake Intelligence and Cortex Code.’

The single-session gain erased roughly a 20% year-to-date decline. An analyst at Bull Theory called Snowflake ‘the data infrastructure that AI runs on.’ Market participants noted future stock performance will depend on whether AI workloads drive sustained consumption revenue and how quickly customers deploy AI agents into production.

Snowflake provides a cloud data platform used for data storage, processing and analytics and works with cloud providers and third-party marketplaces to support analytics and AI workloads. Remaining performance obligations refer to contracted revenue not yet recognized and are used by software companies to signal future revenue visibility.