MW Snowflake's stock is on fire as AI acceleration drives record product-revenue growth

By Tomi Kilgore

Cloud software company makes $6 billion commitment to expand collaboration with AWS to help customers deploy AI faster

Snowflake's stock soared toward a record gain after an earnings beat, a raised outlook and a $6 billion commitment to expand its collaboration with Amazon's AWS.

Shares of Snowflake were flying toward their highest level ever in after-hours trading Wednesday, after the cloud software company beat fiscal first-quarter earnings expectations by a wide margin, and raised its full-year outlook.

As use of artificial intelligence by companies accelerates, demand for the company's core data-platform business continues to grow, Snowflake Chief Financial Officer Brian Robins said. During the latest quarter, 46 customers crossed the threshold of spending more than $1 million on a trailing 12-month basis, Robins said, which compares with 26 customers a year ago.

But earnings weren't the only thing investors cheered. The company also announced a $6 billion commitment to expand its collaboration with Amazon.com's (AMZN) AWS cloud business to help the companies' joint customers build and deploy AI faster.

"AI has generated enormous excitement, but for enterprises, the real challenge and opportunity is turning intelligence into action," said Snowflake CEO Sridhar Ramaswamy.

"With AWS, we are making it easier for enterprises to bring AI directly to governed data, so they can move faster, operate with greater clarity, and create measurable impact at scale," Ramaswamy added.

Snowflake's stock (SNOW) shot up 36.1% in Wednesday's after-hours session, to trade around the highest level seen during regular-session hours since Dec. 4, 2025. The rally also compares with the stock's one-day record gain of 32.7% seen on Nov. 21, 2024.

The rally puts an exclamation point on the stock's turnaround this month, as the narrative around how AI would affect many software stocks seems to have reversed to positive from negative. Snowflake's stock has soared 28.4% in May through Wednesday's close, which puts it on track to snap a six-quarter losing streak in which the stock has tumbled 50.4%.

If Wednesday's after-hours rally holds up Thursday, the stock would be on track to break the monthly record gain of 52.2% seen in November 2024.

For the fiscal first quarter to April 30, total revenue grew 33.5% from a year ago to $1.39 billion, above the average analyst estimate compiled by FactSet of $1.32 billion.

Product revenue jumped 33.9% from a year ago, and increased 8.8% from the previous quarter, to $1.33 billion, to beat the FactSet consensus of $1.27 billion. That beat was by the widest margin in just under four years, according to FactSet data.

Ramaswamy said Snowflake delivered a "milestone quarter," as product revenue marked "the strongest sequential dollar growth in our history."

Adjusted earnings per share, which excludes nonrecurring items, such as stock-based compensation-related charges, rose to 39 cents from 24 cents, and topped expectations of 32 cents.

Looking ahead, the company expects product revenue for the current second quarter of $1.415 billion to $1.42 billion, which is above the current FactSet consensus of $1.37 billion.

For the full fiscal year, the company raised its product-revenue guidance to $5.84 billion from $5.66 billion.

-Tomi Kilgore

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

May 27, 2026 19:15 ET (23:15 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.