Snowflake (SNOW) Stock Jumps 34% After Earnings Beat and $6B Amazon AWS Deal

TLDR

Snowflake posted adjusted EPS of $0.39 vs. $0.32 expected, with revenue up 33% to $1.39 billion Stock surged ~34% in after-hours trading after closing at $175.47, down 1.2% on the day Snowflake announced a $6 billion multi-year infrastructure commitment to Amazon Web Services Full-year product revenue guidance raised to $5.84 billion, up from $5.66 billion prior AI account adoption jumped from ~9,100 to ~13,600 quarter-over-quarter

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Snowflake just had its best quarter in company history — and the market noticed.

The cloud data platform reported fiscal Q1 2027 results after the bell on Wednesday. Adjusted EPS came in at $0.39, up from $0.24 a year ago. Revenue grew 33% year-over-year to $1.39 billion. Wall Street had expected $0.32 EPS and $1.3 billion in revenue.

$SNOW Q1’27 EARNINGS HIGHLIGHTS

Revenue: $1.39B (Est. $1.32B) ; +33% YoY
Adj. EPS: $0.39 (Est. $0.32)
Product Revenue: $1.33B; +34% YoY
RPO: $9.21B; +38% YoY
AWS Agreement: $6B multi-year agreement

Q2 Guide:
Product Revenue: $1.415B-$1.420B; +30% YoY
… pic.twitter.com/XDMLJsMlij

— Wall St Engine (@wallstengine) May 27, 2026

The stock was trading at $175.47 when markets closed Wednesday, down 1.2% on the day. After the earnings dropped, it surged roughly 34% in after-hours trading, adding approximately $22 billion to its market cap.

Snowflake Inc., SNOW

Product revenue for the quarter hit $1.334 billion, ahead of both analyst estimates of $1.27 billion and Snowflake’s own guidance range. Non-GAAP operating margin expanded more than 300 basis points year-over-year to 12%, beating the company’s own 9% guidance.

Wedbush, which rates SNOW outperform, raised its price target from $270 to $280. The broker called it the strongest sequential dollar revenue growth in the company’s history.

Even with that pop, SNOW is still down about 20% year-to-date. The S&P 500 is up 10% over the same stretch.

$6 Billion AWS Deal Adds Fuel

Alongside earnings, Snowflake announced a $6 billion multi-year infrastructure commitment to Amazon Web Services. The deal reflects what the company calls “accelerating enterprise demand for AI and data workloads running on AWS.”

CEO Sridhar Ramaswamy said the partnership makes it easier for enterprises to bring AI to governed data. CFO Brian Robins pointed to “strong momentum” in both the core platform and AI businesses as the reason for raising full-year guidance.

Snowflake also agreed to acquire Natoma, a platform built on Model Context Protocol — a framework that connects AI agents to enterprise data.

AI account adoption climbed from around 9,100 accounts last quarter to roughly 13,600 this quarter. Accounts using its Snowflake Intelligence product doubled quarter-over-quarter.

Guidance Raised Across the Board

For Q2, Snowflake guided product revenue of $1.415 billion to $1.42 billion, well above the $1.37 billion analyst consensus.

Full-year product revenue guidance was lifted to $5.84 billion from $5.66 billion, implying around 31% growth. That figure also topped Wall Street’s $5.67 billion estimate.

Snowflake uses a consumption-based revenue model, meaning customers pay for what they use rather than per seat. As AI agents process more data at faster speeds than humans, that model could benefit directly.

The company has argued its data warehousing services won’t be disrupted by AI — they’ll become more essential as agents need clean, governed data to function.

The quarter fits a broader pattern this earnings season. Palantir beat estimates with 85% year-over-year revenue growth. ServiceNow’s Now Assist AI product saw customers spending over $1 million in annual contract value grow more than 130%.

Enterprise AI consumption is accelerating, not just being tested. Snowflake’s Q1 results are the latest data point backing that up.

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