Snowflake shares jumped dramatically in pre-market activity, climbing 38.1% to $242, after the company reported one of its most notable quarterly performances in recent years and disclosed a large strategic commitment with Amazon Web Services.
On the results front, Snowflake posted adjusted earnings per share of $0.39, topping the analyst consensus of $0.32. Revenue reached $1.39 billion, exceeding the $1.32 billion estimate and marking 33% year-over-year growth. In the company statement, CEO Sridhar Ramaswamy said that "AI continues to be a powerful tailwind for Snowflake, and Q1 marks a clear inflection point in that journey." The management commentary framed AI as a central acceleration factor behind the quarter's performance.
Buoyed by the quarter's momentum, Snowflake raised its full-year fiscal 2027 product revenue guidance to $5.84 billion, which represents 31% year-over-year growth. The guidance lift accompanied a separate disclosure that Amazon confirmed its cloud division had secured a $6 billion spending commitment from Snowflake covering services and technology over five years. As part of the expanded relationship, Snowflake said it plans to increase its use of Amazon's Graviton general-purpose chips and make greater use of cloud-based GPUs for AI workloads.
Snowflake also revealed it had signed a definitive agreement in May 2026 to acquire Natoma, described as an enterprise Model Context Protocol platform for AI agents intended to make it easier for users to securely connect AI to everyday tools. The acquisition was presented alongside the earnings as another element of the company's AI-focused strategy.
The quarterly release prompted a wave of analyst activity. Goldman Sachs raised its price target to $278 from $216, while Barclays lifted its target to $272 from $192. Multiple other firms reiterated Buy ratings, citing the AI-driven outperformance and the raised fiscal 2027 outlook as justification for more bullish stances.
Market observers noted that the move appeared self-generated: key cloud data peers such as Salesforce and Datadog did not release major news overnight, and the broader market offered little directional support, with the S&P 500 and NASDAQ essentially flat on the day. Amazon's stock showed an uptick in the session as well.
The rally represents a sharp reversal for a stock that had been among the software sector's biggest laggards over the prior year. Snowflake had fallen more than 50% across the previous six quarters before the latest results and strategic announcements sparked renewed investor optimism. The combination of a clear earnings beat, the infrastructure commitment with AWS, an upgraded FY27 product revenue outlook, an AI-related acquisition, and a cluster of analyst upgrades produced a layered catalyst that pushed Snowflake to its highest pre-market level in months.
Context and implications
For investors and market participants focused on cloud infrastructure, enterprise AI, and data platforms, Snowflake's report ties together revenue execution, strategic cloud vendor alignment, and product-level investments. The company's increased use of Graviton chips and cloud GPUs points toward higher intensity AI workloads running on AWS infrastructure, and the Natoma acquisition is positioned as an integration play for AI agents within enterprise workflows.
While the quarter and announcements drove strong immediate market reaction, the stock's move stemmed from multiple discrete developments all disclosed by the company the same day.