Snowflake Explodes 37% on $6 Billion Amazon Deal as CEO Calls Q1 an AI “Inflection Point”

Snowflake's stock surged 37% to $240 after reporting Q1 FY2027 revenue of $1.33 billion and announcing a $6 billion multiyear deal with Amazon Web Services. CEO Sridhar Ramaswamy called the quarter an AI 'inflection point,' raising full-year revenue guidance to $5.84 billion and lifting operating margin targets to 14%." "article": "Snowflake Inc. (NYSE: SNOW) shares jumped 37% to around $240 after reporting strong Q1 FY2027 results and securing a $6 billion multiyear agreement with Amazon Web Services (AWS). The company’s Q1 product revenue reached $1.33 billion, a 34% year-over-year increase and its highest sequential growth ever, while total revenue hit $1.39 billion, exceeding analyst expectations by 5%. CEO Sridhar Ramaswamy highlighted the quarter as an 'AI inflection point,' emphasizing Snowflake’s role as the 'control plane for the Agentic Enterprise' through its Cortex Code and Snowflake Intelligence tools. Over 13,600 accounts now use Snowflake’s AI capabilities, with Cortex Code active in 7,100+ accounts and Snowflake Intelligence usage doubling sequentially. The company also raised its full-year product revenue guidance to $5.84 billion (31% growth) and increased its non-GAAP operating margin target to 14%. The $6 billion AWS deal, focused on Amazon Graviton CPUs over five years, solidifies Snowflake’s compute strategy and validates Graviton’s performance for high-end enterprise workloads. The partnership follows AWS’s record Q1 2026 revenue of $37.59 billion, marking its fastest growth in 15 quarters, and aligns with AWS’s recent AI infrastructure wins, including deals with OpenAI, Anthropic, and Meta. Snowflake’s stock had struggled year-to-date, down 20% before the surge, but the earnings beat and deal announcement triggered a sharp reversal. The company reported 616 net new customers and 779 accounts spending over $1 million in trailing 12-month product revenue, with remaining performance obligations rising 38% to $9.21 billion. Net revenue retention held steady at 126%. Amazon’s stock also rose pre-market, benefiting from the recurring AWS revenue tied to the Snowflake deal. The partnership underscores AWS’s dominance in enterprise AI infrastructure, with CEO Andy Jassy previously calling the current moment one of the 'biggest inflections of our lifetime.' The combined momentum has reignited investor interest in both companies.