Snowflake’s stock surges after-hours on solid earnings beat and multibillion-dollar AWS cloud deal

Snowflake Inc. reported a significant after-hours stock surge after announcing a $6 billion spending commitment on Amazon Web Services (AWS) cloud infrastructure over the next five years. The deal includes expanded use of AWS’s Graviton chips and custom AI accelerators, reinforcing AWS’s growing dominance in AI-driven enterprise workloads. The cloud data platform also delivered strong first-quarter earnings, exceeding Wall Street estimates with revenue of $1.39 billion—a 33% year-over-year increase—and earnings before stock compensation of 39 cents per share. Analysts had projected 32 cents per share and $1.32 billion in revenue, leaving Snowflake well ahead of expectations. Snowflake raised its full-year revenue guidance to approximately $5.84 billion, up from an earlier forecast of $5.66 billion, surpassing analyst targets of $5.67 billion. The company’s adjusted operating margin guidance of 12.5% also exceeded the expected 11.9%, driven by AI adoption through products like Cortex Code and Snowflake Intelligence. CEO Sridhar Ramaswamy attributed the momentum to AI-driven acceleration in Snowflake’s core platform and growing demand for its first-party AI solutions. The company positioned itself as a leader in the ‘Agentic Enterprise,’ where AI agents automate tasks based on natural language prompts, reshaping enterprise operations. The news follows recent concerns about AI startups disrupting traditional software markets, but Snowflake’s results suggest enterprise AI adoption is accelerating rather than destabilizing legacy platforms. The AWS deal further solidifies Snowflake’s reliance on Amazon’s cloud services, as the company has done since its 2020 IPO.