Snowflake’s shares surged in after-hours trading following the announcement of a substantial $6 billion agreement to expand its use of Amazon Web Services (AWS) cloud infrastructure. The deal includes Snowflake’s commitment to deploying more of AWS’s general-purpose Graviton chips as well as specialized AI accelerators over the next five years.
The cloud data platform also delivered strong financial results for the first quarter, comfortably exceeding Wall Street expectations. Adjusted earnings per share reached 39 cents, surpassing the consensus forecast of 32 cents, while revenue climbed by 33% year-over-year to $1.39 billion, well above the anticipated $1.32 billion.
Snowflake’s renewed agreement with AWS highlights the growing integration between AI-focused enterprises and major cloud providers. AWS has been increasingly securing significant deals in the AI sector, including multibillion-dollar partnerships with prominent AI developers Anthropic and OpenAI. Unlike those earlier arrangements, Snowflake’s deal does not involve equity investment but rather a commercial commitment reflecting its status as a mature public company.
The company raised its full-year revenue guidance to approximately $5.84 billion in product revenue, up from the previous forecast of $5.66 billion and ahead of analysts’ expectations at $5.67 billion. For the second quarter, Snowflake anticipates product revenue between $1.415 billion and $1.42 billion, with an adjusted operating margin of 12.5%, exceeding the market’s projections.
Snowflake’s CEO attributed this outlook upgrade to strong momentum driven by core business growth and accelerating AI adoption. He described the first quarter as a turning point fueled by AI innovations integrated into Snowflake’s platform, including enhanced AI tooling designed to transform enterprise data management into an “agentic” control plane for AI-powered workflows.
This strategic shift positions Snowflake at the forefront of the growing AI economy, leveraging AWS’s infrastructure capabilities to meet heightened customer demand for AI workloads. By deepening its partnership with AWS, Snowflake aims to advance its data cloud services as a foundational platform for enterprise AI applications.