Snowflake Inc. (NYSE:SNOW) shares skyrocketed over 35% in premarket trading on Thursday after the AI data cloud provider crushed first-quarter fiscal 2027 expectations, upgraded its full-year growth outlook, and announced a massive $6 billion multi-year infrastructure agreement with Amazon.com Inc.‘s (NASDAQ:AMZN) AWS.
A ‘Clear Inflection’ In AI Growth
The blowout quarter represents a pivotal shift that Patrick Moorhead, Chief Analyst at Moor Insights Strategy, said can fundamentally “re-rate the data platform story,” signaling that enterprise AI product adoption is finally lifting corporate trajectories rather than just driving market narrative.
Snowflake’s first-quarter revenue climbed 33% year-over-year to $1.39 billion, handily beating Wall Street estimates of $1.32 billion. On the back of this accelerated momentum, management lifted its full-year fiscal 2027 product revenue guidance to $5.84 billion, representing 31% year-over-year growth.
“AI continues to be a powerful tailwind for Snowflake, and Q1 marks a clear inflection point in that journey,” stated Snowflake CEO Sridhar Ramaswamy.
Solidifying The Enterprise AI Foundation
Central to this upgraded revenue trajectory is the new $6 billion Amazon AWS commitment designed to accelerate enterprise AI adoption while optimizing cloud compute costs.
Ramaswamy emphasized that Snowflake is quickly becoming the “circulatory system” of modern enterprises, anchoring data workflows through tools like Cortex Code (CoCo) and Snowflake Intelligence.
CoCo went general interest in February and has rapidly scaled to over 7,100 active accounts, proving to be a massive catalyst for core platform consumption.
Improving Unit Economics
Beyond top-line expansion, Snowflake delivered substantial operational discipline that thrilled investors. The firm’s non-GAAP operating margin expanded over 300 basis points year-over-year to 12%, prompting leadership to raise full-year operating margin guidance to 13.5%.
Snowflake executed this scaling with extreme efficiency, adding only 17 organic hires during the quarter. Chief Financial Officer Brian Robins highlighted a “step function change” in the company’s AI revenue opportunity.
This combination of strict cost controls and surging software adoption provided exactly what the market demanded, according to Moorhead: high-velocity growth structurally reinforced by “improving unit economics.”
How Has SNOW Performed In 2026?
In comparison with the Nasdaq Composite’s 14.80% year-to-date advance, shares of SNOW have declined by 20.10% over the same period. It was up 37.09% in premarket on Thursday.
Over the last month, SNOW stock was up 21.50%, and it fell 29.52% and 15.07% over the last six months and the year, respectively. Benzinga’s Edge Stock Rankings indicate that SNOW maintains a weak price trend in the long term but a strong trend in the medium and short terms.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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