Snowflake (SNOW) stock soared about 36% in after-hours Wednesday on the AI cloud company’s better-than-expected first-quarter earnings and strong full-year outlook, with the deal with Amazon (AMZN) providing further support.
The data and cloud company announced a multi-year, $6 billion infrastructure deal for Amazon’s AWS, reflecting accelerating enterprise demand for AI and data workloads running on AWS. This is the largest scale yet.
Snowflake was founded on AWS 11 years ago and has since grown to more than $7 billion in lifetime revenue, more than $2 billion in calendar year revenue in 2025, and more than doubled year-over-year transaction growth.
In a separate release, the company announced the acquisition of Natoma, an enterprise model context protocol (MCP) platform for AI agents. MCP was introduced by Anthropic to help securely connect AI models to data sources and tools.
Snowflake CEO Sridhar Ramaswamy said: “Agents don’t just need access to data; they need the right context, permissions, and policy guardrails to operate securely within the enterprise.”
SNOW Q1 results
Snowflake’s first-quarter sales were $1.39 billion, representing 33% year-over-year growth and well above analysts’ expectations of $1.32 billion for the quarter ending in April. Total revenue for the quarter included $1.33 billion in product revenue, an increase of 34% year-over-year.
The company’s earnings came in at $0.39 per share, well above the $0.32 per share estimate based on data from Fiscal.ai.
“AI continues to be a strong tailwind for Snowflake, and Q1 marks a clear inflection point in that path,” Ramaswamy added.
SNOW Q2 and Full Year Guidance
SNOW expects product revenue to be $1.42 billion in the second quarter, representing 30% year-over-year growth.
The company also raised its full-year product revenue outlook to $5.8 billion from its previous estimate of $5.7 billion.
SNOW retail view
Retail sentiment on Stocktwits was “very bullish” and message volume was “very high.”
One user highlighted the Snowflake Summit, where Anthropic’s CEO will be the keynote speaker, and expressed bullishness that the stock’s upward trend is not over yet.
https://stocktwits.com/Long_SNOW/message/654567496
SNOW stock has fallen 21.4% since the beginning of the year.
