Menlo Park, CA — May 27, 2026: Cloud data and AI company Snowflake Inc. (NYSE: SNOW) delivered one of the most explosive after-hours stock moves of 2026, with shares surging over 30% following a blockbuster Q1 earnings report, a massive $6 billion multi-year deal with Amazon Web Services (AWS), and a significant raise to its full-year revenue guidance. The results sent Wall Street into a frenzy and positioned Snowflake as a front-runner in the enterprise AI race.
Q1 FY2027 Earnings: A "Milestone Quarter"
Snowflake reported total revenue of $1.39 billion in the first quarter of fiscal 2027, representing 33% year-over-year growth and smashing analyst expectations of $1.32 billion. Adjusted earnings per share came in at $0.39, beating the analyst consensus of $0.32 by $0.07.
CEO Sridhar Ramaswamy called it a "milestone quarter" that "marks a clear inflection point," and for good reason — product revenue of $1.33 billion grew 34% year-over-year, marking the strongest sequential dollar growth in the company's history.
The $6 Billion Amazon AWS Deal: What It Means
Snowflake committed to spending $6 billion on AWS infrastructure over the next five years, marking its largest infrastructure commitment to date and underscoring rising demand for AI and data workloads. As part of the deal, Snowflake will purchase Amazon's custom Arm-based Graviton chips and GPUs to power its AI-driven platform.
The partnership significantly deepens a relationship that stretches back over a decade. Snowflake was founded on AWS eleven years ago and has since surpassed $7 billion in lifetime sales, exceeding $2 billion in calendar year sales in 2025 — more than doubling transaction growth year-over-year. For more on the AWS cloud infrastructure powering this deal, visit Amazon Web Services (aws.amazon.com).
Guidance Raised: FY2027 Revenue Target Lifted
Snowflake raised its full-year product revenue outlook to $5.84 billion for the fiscal year ending January 2027, up from its previous guidance of $5.66 billion — topping the analyst consensus estimate of $5.68 billion. For Q2, Snowflake expects product revenue of $1.415–$1.420 billion, representing 30% YoY growth.
AI Acquisition: Natoma Deal Signals Agentic Future
Snowflake also signed a definitive agreement to acquire Natoma, an enterprise Model Context Protocol (MCP) platform for AI agents, to make it easier for users to securely connect AI to everyday business tools — directly within and beyond Snowflake's platform. The acquisition signals a bold move into the rapidly growing market for enterprise AI agents and automated workflows.
Wall Street Reacts: AI Tailwind is Real
Analysts at Wedbush, led by Dan Ives, told clients the results showed "AI acting as a powerful tailwind for new and existing customers" and said Snowflake's success could inspire broader investor confidence in the software sector.
Snowflake shares, which had lost about 20% year-to-date through Wednesday's close and briefly fell below $120 in April, surged back above $240 in extended trading — potentially erasing all their 2026 losses in a single session. For investors tracking the AI data infrastructure space, this earnings print is a landmark signal that enterprise AI spending is accelerating — and Snowflake is sitting squarely at the center of it.