Key Highlights
- The company delivered adjusted earnings per share of $0.39, surpassing the $0.32 consensus, while revenue climbed 33% to $1.39 billion
- Shares skyrocketed approximately 34% after hours following a 1.2% decline during regular trading to $175.47
- The data platform provider unveiled a $6 billion long-term infrastructure agreement with Amazon Web Services
- Annual product revenue forecast increased to $5.84 billion from the previous $5.66 billion projection
- AI-focused customer accounts expanded from approximately 9,100 to roughly 13,600 in just one quarter
Snowflake delivered what might be its most impressive quarterly performance to date — and investors responded enthusiastically.
The cloud-based data warehousing company unveiled its fiscal Q1 2027 financial results Wednesday evening. The firm posted adjusted earnings per share of $0.39, a significant increase from $0.24 in the same period last year. Revenue surged 33% year-over-year, reaching $1.39 billion. Analysts had anticipated $0.32 in EPS and approximately $1.3 billion in revenue.
Shares closed regular trading Wednesday at $175.47, reflecting a modest 1.2% decline. Following the earnings announcement, the stock exploded approximately 34% in extended trading, effectively adding around $22 billion to the company’s overall market valuation.
Product revenue for the reporting period reached $1.334 billion, exceeding both the Street’s $1.27 billion estimate and the company’s internal forecast range. Non-GAAP operating margin grew by more than 300 basis points compared to the prior year, landing at 12% versus the company’s 9% projection.
Wedbush, maintaining its outperform rating on SNOW, increased its price target from $270 to $280. The firm characterized the results as representing the most robust sequential dollar revenue expansion in Snowflake’s corporate history.
Despite the dramatic after-hours rally, SNOW remains approximately 20% lower year-to-date. By comparison, the S&P 500 has gained 10% during the same timeframe.
Massive Amazon Partnership Drives Momentum
Concurrent with its earnings release, Snowflake revealed a $6 billion multi-year infrastructure partnership with Amazon Web Services. According to the company, this agreement represents “accelerating enterprise demand for AI and data workloads running on AWS.”
Chief Executive Sridhar Ramaswamy emphasized that the collaboration simplifies the process for enterprises to deploy AI capabilities with properly governed data. Chief Financial Officer Brian Robins attributed the raised full-year outlook to “strong momentum” across both the company’s foundational platform and emerging AI offerings.
The company also revealed plans to acquire Natoma, a platform developed using the Model Context Protocol — a structure that enables AI agents to interface with enterprise data systems.
Customer accounts utilizing AI features grew from roughly 9,100 last quarter to approximately 13,600 this period. Usage of its Snowflake Intelligence offering doubled on a sequential basis.
Company Elevates Financial Projections
For the second quarter, Snowflake projected product revenue between $1.415 billion and $1.42 billion, significantly exceeding the $1.37 billion Wall Street consensus.
Full-year product revenue expectations were raised to $5.84 billion from the prior $5.66 billion forecast, suggesting approximately 31% annual growth. This updated guidance 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 per-user subscriptions. As AI agents analyze data at volumes and velocities exceeding human capability, this business model stands to benefit considerably.
Management has consistently maintained that its data warehousing offerings won’t face obsolescence from AI advancement — rather, they’ll grow increasingly critical as intelligent agents require clean, well-managed data for optimal performance.
These results align with emerging trends throughout the current earnings cycle. Palantir exceeded projections with 85% year-over-year revenue expansion. ServiceNow reported that customers spending over $1 million annually on its Now Assist AI solution grew by more than 130%.
Enterprise AI adoption is moving beyond the pilot phase into meaningful production deployment. Snowflake’s first-quarter performance provides compelling evidence supporting this transformation.
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