Snowflake Q1 fiscal 2027 earnings beat, $6 billion AWS deal

Snowflake reported first-quarter gross of $1.39 billion, up 33% from a twelvemonth earlier, and announced a $6 billion, five-year spending committedness to Amazon Web Services connected Wednesday, sending Snowflake banal sharply higher successful after-hours trading.

Product revenue, the company's superior metric, reached $1.33 billion, a 34% year-over-year summation that Snowflake said represented the strongest sequential dollar maturation successful its history. The Wall Street consensus, per LSEG estimates cited by CNBC, had called for gross of $1.32 cardinal and adjusted net of 32 cents per share. On an adjusted basis, net came successful astatine 39 cents per share.

Alongside the net results, Snowflake announced a multi-year strategical collaboration statement with AWS covering $6 cardinal successful infrastructure spending implicit 5 years, its largest committedness to the unreality supplier to date. Under the agreement, Snowflake plans to broaden its reliance connected Graviton chips alongside cloud-based GPU resources to enactment AI workloads. Snowflake was founded connected AWS eleven years ago, and the bulk of its customers tally connected AWS today.

"We are moving into the epoch of the agentic enterprise, wherever AI systems don't conscionable reply questions, but assistance organizations crushed implicit trusted data, coordinate workflows, and thrust existent concern outcomes," Snowflake CEO Sridhar Ramaswamy said successful a statement.

Snowflake besides raised its full-year merchandise gross guidance to $5.84 billion, representing 31% year-over-year growth, up from a anterior forecast of $5.66 billion, oregon 27% growth. The institution besides raised its full-year non-GAAP operating borderline outlook to 13.5% from 12.5%.

Looking to the 2nd quarter, the institution projected merchandise gross successful the scope of $1.415 cardinal to $1.420 cardinal with a non-GAAP operating borderline of 12.5%. That topped StreetAccount statement figures of $1.37 cardinal successful merchandise gross and an 11.9% margin, arsenic noted by CNBC.

The institution ended the 4th with 779 customers generating much than $1 cardinal successful trailing 12-month merchandise revenue, up 29% twelvemonth implicit year. That fig reflects an accelerating gait of endeavor adoption: CFO Brian Robins said 46 customers reached the million-dollar threshold successful the astir caller quarter, astir treble the 26 who did truthful successful the year-earlier period. Remaining show obligations reached $9.21 billion, up 38% twelvemonth implicit year.

Snowflake besides said it signed a definitive statement to get Natoma, an endeavor level for AI agents, for an undisclosed sum.

After-hours trading saw Snowflake shares surge arsenic overmuch arsenic 36%, according to CNBC.