Key Highlights
- The company delivered adjusted earnings per share of $0.39, beating the $0.32 consensus, while revenue climbed 33% to reach $1.39 billion
- Shares rocketed approximately 34% in extended trading after closing Wednesday’s session at $175.47, down 1.2%
- A massive $6 billion multi-year cloud infrastructure agreement with Amazon Web Services was unveiled
- Annual product revenue outlook increased to $5.84 billion from the previous $5.66 billion forecast
- The number of AI-enabled accounts exploded from approximately 9,100 to around 13,600 in just one quarter
Snowflake delivered what may be its most impressive quarterly performance yet — and investors responded enthusiastically.
The cloud-based data warehousing company unveiled fiscal Q1 2027 financial results following Wednesday’s market close. The firm posted adjusted earnings of $0.39 per share, a significant jump from $0.24 in the year-ago period. Total revenue expanded 33% year-over-year to $1.39 billion. Analysts had been anticipating earnings of $0.32 per share on revenue of $1.3 billion.
Shares closed Wednesday’s regular session at $175.47, shedding 1.2% during standard trading hours. However, once the quarterly results hit the wire, the stock exploded roughly 34% higher in after-hours activity, tacking on approximately $22 billion in market capitalization.
Product revenue during the three-month period reached $1.334 billion, surpassing both Wall Street’s $1.27 billion estimate and the company’s internal projections. The non-GAAP operating margin widened by more than 300 basis points compared to last year, hitting 12% versus management’s 9% guidance.
Wedbush Securities, which maintains an outperform rating on SNOW, lifted its price objective from $270 to $280. Analysts at the firm characterized the results as representing the most robust sequential dollar revenue expansion in Snowflake’s corporate history.
Despite the after-hours surge, SNOW remains roughly 20% lower year-to-date. By comparison, the S&P 500 has advanced 10% during the identical timeframe.
Massive Amazon Web Services Partnership Announced
Concurrent with the earnings release, Snowflake revealed a $6 billion multi-year cloud infrastructure commitment with Amazon Web Services. This arrangement underscores what management describes as “accelerating enterprise demand for AI and data workloads running on AWS.”
Chief Executive Officer Sridhar Ramaswamy emphasized that the collaboration simplifies the process for organizations to deploy AI against governed datasets. Chief Financial Officer Brian Robins attributed the upgraded full-year projections to “strong momentum” across both the foundational platform and artificial intelligence business segments.
The company also disclosed plans to acquire Natoma, a platform developed on Model Context Protocol — an architecture that links AI agents with enterprise information systems.
Adoption of AI-enabled accounts surged from approximately 9,100 in the previous quarter to roughly 13,600 this period. Organizations utilizing the Snowflake Intelligence offering doubled on a sequential basis.
Forward Outlook Elevated on All Metrics
For the upcoming second quarter, Snowflake projected product revenue between $1.415 billion and $1.42 billion, substantially exceeding the $1.37 billion analyst consensus forecast.
The full-year product revenue guidance received an upward revision to $5.84 billion from the prior $5.66 billion target, suggesting approximately 31% annual growth. This projection also surpassed Wall Street’s collective estimate of $5.67 billion.
Snowflake operates on a consumption-driven revenue framework, where clients are billed based on actual usage rather than fixed seat licenses. As AI agents consume and process substantially more data at accelerated speeds compared to human users, this business model could experience direct tailwinds.
Management has consistently maintained that its data warehousing capabilities won’t face displacement from AI technologies — rather, they’ll become increasingly critical as intelligent agents require high-quality, properly governed data to operate effectively.
This quarter aligns with broader themes emerging across this earnings cycle. Palantir exceeded projections with 85% year-over-year revenue expansion. ServiceNow’s Now Assist AI solution witnessed customers committing over $1 million in annual contract value increase by more than 130%.
Enterprise artificial intelligence adoption is rapidly accelerating beyond mere pilot programs. Snowflake’s first-quarter performance represents another compelling indicator supporting this trend.
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