Key Highlights
- The company delivered adjusted earnings per share of $0.39, beating the Street’s $0.32 forecast, while revenue climbed 33% to $1.39 billion
- Shares rocketed approximately 34% in extended trading after settling at $175.47, down 1.2% during regular hours
- The cloud data provider unveiled a $6 billion long-term infrastructure partnership with Amazon Web Services
- Annual product revenue forecast elevated to $5.84 billion from the previous $5.66 billion projection
- Artificial intelligence-enabled accounts surged from approximately 9,100 to around 13,600 in a single quarter
Snowflake delivered what may be remembered as its strongest quarterly performance to date — and investors responded enthusiastically.
The enterprise cloud data platform unveiled fiscal first quarter 2027 financial results Wednesday evening. Non-GAAP earnings per share reached $0.39, a significant jump from $0.24 in the year-ago period. Top-line results showed 33% annual expansion to $1.39 billion. Analyst projections had called for $0.32 in adjusted EPS alongside $1.3 billion in revenue.
Shares closed Wednesday’s regular session at $175.47, slipping 1.2% during standard trading hours. Once the financial report hit the wires, the stock exploded roughly 34% higher in after-hours activity, tacking on approximately $22 billion in market capitalization.
Product-related revenue for the three-month period totaled $1.334 billion, surpassing both Wall Street’s $1.27 billion consensus and the company’s internal projections. Adjusted operating margin widened by more than 300 basis points annually to 12%, exceeding management’s 9% target.
Wedbush, which maintains an outperform rating on SNOW, lifted its price objective from $270 to $280. Analysts at the firm characterized the results as representing the most robust sequential dollar revenue expansion in company history.
Despite the dramatic after-hours spike, shares remain roughly 20% lower year-to-date. By comparison, the S&P 500 has advanced 10% during the same timeframe.
Amazon Partnership Provides Major Catalyst
In conjunction with its financial report, Snowflake revealed a $6 billion multi-year infrastructure agreement with Amazon Web Services. Management characterized the arrangement as reflecting “accelerating enterprise demand for AI and data workloads running on AWS.”
Chief Executive Sridhar Ramaswamy emphasized that the collaboration simplifies the process for enterprises seeking to deploy AI capabilities with properly governed data. Chief Financial Officer Brian Robins cited “strong momentum” across both the foundational platform and AI-focused business units as justification for elevating annual projections.
The company also disclosed plans to acquire Natoma, a platform developed using Model Context Protocol — a technical framework designed to connect AI agents with enterprise data systems.
Artificial intelligence account penetration expanded from roughly 9,100 accounts in the prior quarter to approximately 13,600 in the current period. Usage of its Snowflake Intelligence offering doubled on a sequential basis.
Forward Outlook Strengthened Significantly
For the upcoming second quarter, management projected product revenue between $1.415 billion and $1.42 billion, substantially above the $1.37 billion analyst consensus.
Full-year product revenue expectations were upgraded to $5.84 billion from the prior $5.66 billion forecast, suggesting approximately 31% annual growth. The revised figure also exceeded Street estimates of $5.67 billion.
The company operates on a consumption-driven revenue structure, where clients pay based on actual usage rather than fixed per-user licensing. As AI agents consume and process data at velocities far exceeding human capabilities, this business model stands to benefit substantially.
Management has consistently maintained that its data warehousing infrastructure won’t face disruption from AI advancement — rather, these services become increasingly critical as intelligent agents require clean, well-governed data to operate effectively.
The quarterly performance aligns with emerging patterns throughout this earnings cycle. Palantir exceeded projections with 85% year-over-year revenue expansion. ServiceNow’s Now Assist AI solution witnessed customers committing over $1 million in annual contract value surge by more than 130%.
Enterprise artificial intelligence consumption is clearly accelerating beyond experimental phases. Snowflake’s first-quarter results provide compelling evidence supporting this trend.
