Key Highlights
- Adjusted earnings per share reached $0.39, surpassing analyst expectations of $0.32, while revenue climbed 33% to $1.39 billion
- Shares jumped approximately 34% in extended trading after closing down 1.2% at $175.47 during regular hours
- Company revealed a $6 billion long-term infrastructure agreement with Amazon Web Services
- Annual product revenue forecast increased to $5.84 billion from previous guidance of $5.66 billion
- AI-focused customer accounts grew from approximately 9,100 to roughly 13,600 in a single quarter
Snowflake delivered what may be its most impressive quarterly performance to date — and investors responded enthusiastically.
The data cloud specialist unveiled fiscal Q1 2027 financial results Wednesday evening. The company reported adjusted earnings per share of $0.39, a significant increase from $0.24 in the prior-year period. Revenue expanded 33% year-over-year, reaching $1.39 billion. Analysts had projected $0.32 per share on $1.3 billion in sales.
Shares closed Wednesday’s regular session at $175.47, sliding 1.2% for the day. Following the earnings announcement, the stock rocketed approximately 34% in after-hours activity, boosting market capitalization by roughly $22 billion.
Product revenue totaled $1.334 billion for the period, exceeding both Street expectations of $1.27 billion and the company’s internal projections. Non-GAAP operating margin improved by over 300 basis points compared to last year, reaching 12% versus management’s 9% forecast.
Wedbush Securities, which maintains an outperform rating on SNOW, increased its price objective from $270 to $280. Analysts characterized the results as representing the most robust sequential dollar revenue expansion in Snowflake’s corporate history.
Despite the dramatic after-hours surge, SNOW shares remain down approximately 20% for the year. By comparison, the S&P 500 has gained 10% during the identical timeframe.
Major Amazon Web Services Partnership Announced
Coinciding with the earnings release, Snowflake unveiled a $6 billion multi-year infrastructure commitment with Amazon Web Services. According to the company, this agreement addresses “accelerating enterprise demand for AI and data workloads running on AWS.”
Chief Executive Officer Sridhar Ramaswamy stated the collaboration streamlines the process for enterprises to deploy AI with properly governed data. Chief Financial Officer Brian Robins attributed the upgraded annual outlook to “strong momentum” across both the platform’s core offerings and artificial intelligence capabilities.
The company also disclosed plans to acquire Natoma, a solution developed using Model Context Protocol — a technology that bridges AI agents with enterprise information systems.
Customer accounts leveraging AI functionality increased from approximately 9,100 in the previous quarter to around 13,600 this period. Usage of the company’s Snowflake Intelligence offering doubled on a sequential basis.
Forward Outlook Strengthened Significantly
For the second quarter, management projected product revenue between $1.415 billion and $1.42 billion, substantially exceeding the $1.37 billion Wall Street consensus.
Full-year product revenue expectations were elevated to $5.84 billion from $5.66 billion, suggesting approximately 31% growth. This forecast also surpassed analyst estimates of $5.67 billion.
Snowflake operates on a consumption-based pricing structure, where clients pay based on actual usage rather than fixed subscription fees. As AI agents analyze larger data volumes at speeds exceeding human capacity, this revenue model stands to benefit considerably.
Management has maintained that its data warehousing capabilities won’t face disruption from AI technology — instead, they’ll become increasingly critical as automated agents require clean, properly managed data to operate effectively.
The results align with emerging trends throughout this earnings cycle. Palantir exceeded forecasts with 85% year-over-year revenue expansion. ServiceNow reported that customers spending over $1 million annually on its Now Assist AI solution increased by more than 130%.
Enterprise AI adoption has moved beyond experimentation into active deployment. Snowflake’s first-quarter performance provides additional evidence supporting this transition.
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