Snowflake Shares Surge 35% After Hours. $6 Billion Expansion of Partnership With Amazon AWS, First-Quarter Revenue Jumps 33%

Tradingkey - Snowflake ( SNOW) Following the announcement of its new partnership with Amazon AWS and its first-quarter earnings report, the company's shares surged over 35% in after-hours trading; as of press time, they remained up 33% at $233.10.

On the news front, Snowflake released its first-quarter results for fiscal 2027. The company reported revenue of $1.39 billion, up 33% year-over-year. Net revenue retention was 126%. Additionally, remaining performance obligations (RPO) reached $9.21 billion, up 38% year-over-year. The company has 779 customers with trailing 12-month product revenue exceeding $1 million, a 29% increase year-over-year.

At the same time, Snowflake provided strong guidance, forecasting a second-quarter adjusted operating margin of 12.5% and product revenue between $1.415 billion and $1.42 billion. Both figures exceeded market expectations of 11.9% and $1.37 billion.

In addition, Snowflake stated it would acquire AI startup Natoma, though the deal's value was not disclosed.

More significantly, Snowflake announced a multi-year strategic cooperation agreement with Amazon Web Services (AWS) to accelerate the application of enterprise AI agents. Snowflake committed $6 billion in infrastructure spending to AWS over several years, marking its largest single investment to date.

Specifically, Snowflake will purchase services and technology from AWS over a five-year period. Snowflake plans to expand its use of Amazon Graviton general-purpose chips and cloud GPUs for AI.

Snowflake CEO Sridhar Ramaswamy stated: "AI has sparked an unprecedented industry craze, but for enterprises, the real challenge and opportunity lie in turning intelligence into action. Snowflake is entering the era of the agentic enterprise, where AI systems no longer just answer questions, but help companies reason with trusted data, coordinate workflows, and create tangible business value. Through our partnership with AWS, we are enabling enterprises to bring AI directly to governed data environments, accelerating the pace of innovation, improving operational transparency, and achieving measurable business impact at scale."