Snowflake (SNOW) stock jumped roughly 40% on May 28, 2026, erasing a 20% year-to-date decline in a single session. The move followed a strong earnings report and the announcement of a $6 billion cloud commitment with Amazon Web Services.
Earnings Beat Resets the Story
Snowflake posted first-quarter fiscal 2027 revenue of $1.39 billion, up 33% year over year and ahead of the $1.32 billion consensus estimate. Product revenue grew 34% to $1.33 billion. Non-GAAP earnings came in at $0.39 per share against a $0.32 consensus. Net revenue retention held at 126%, and remaining performance obligations expanded 38% to $9.21 billion.
Management raised full-year fiscal 2027 product revenue guidance to $5.84 billion, implying 31% growth, up from a prior outlook of 27%.
The $6 Billion AWS Commitment
Snowflake signed a five-year, $6 billion deal with Amazon Web Services — its largest cloud commitment to date. The arrangement covers AWS Graviton chips for general workloads and GPU-accelerated EC2 instances for AI model training, while deepening integrations for agentic AI infrastructure. Snowflake noted that lifetime sales through the AWS Marketplace have topped $7 billion.
Separately, Snowflake announced its intent to acquire Natoma, an enterprise Model Context Protocol platform for governing AI agents. The deal is intended to extend Snowflake’s agentic AI stack into identity and connectivity layers.
CEO Sridhar Ramaswamy has positioned the company as the governed data layer powering enterprise AI. Continued upside will depend on whether AI workloads convert into durable consumption revenue and how quickly customers move agents into production.
Source: Snowflake Surges 40% on Earnings Beat and $6B AWS Deal