Gotrade News - Snowflake (SNOW) shares surged about 35% after first-quarter results topped Wall Street consensus. The data cloud firm also disclosed a five-year $6 billion commitment to Amazon Web Services.
The rally reversed a roughly 20% year-to-date decline and reframed Snowflake as an AI infrastructure story. Product revenue growth of 34% signaled accelerating enterprise AI workload adoption.
Key Takeaways
- Snowflake Q1 product revenue reached $1.33 billion, up 34% year-over-year and ahead of consensus.
- A five-year $6 billion AWS commitment expands use of Graviton CPUs and cloud GPUs for AI.
- Management raised full-year product revenue guidance to $5.84 billion, implying 31% growth.
Revenue And Guidance Top Street Estimates
Snowflake reported Q1 product revenue of $1.33 billion, beating consensus near $1.30 billion. Non-GAAP earnings per share landed at $0.39 versus the $0.32 analyst estimate.
According to Seeking Alpha, remaining performance obligations climbed 38% to $9.21 billion. Customers spending more than $1 million annually rose to 779, up 29% year-over-year.
Management lifted full-year product revenue guidance to $5.84 billion, equal to 31% growth. The prior outlook stood at $5.66 billion, or roughly 27% growth.
Amazon Deal Anchors AI Infrastructure Story
Snowflake committed $6 billion in spend with Amazon (AMZN) over five years. The arrangement expands use of Amazon Graviton CPUs and cloud GPUs for generative AI workloads.
As reported by QZ, CEO Sridhar Ramaswamy called the quarter a clear inflection point for enterprise AI. More than 13,600 accounts now use Cortex Code and Snowflake Intelligence features.
AWS itself posted quarterly revenue of $37.59 billion, growing 28% year-over-year. The Graviton tie-up validates ARM-based CPU economics for large enterprise data workloads.
Investors read the deal as a shift from data warehouse to AI infrastructure platform. The multiyear structure also gives AWS sharper visibility on enterprise compute demand.
Thematic AI ETFs gained meaningfully on the move alongside the underlying stock. LRNZ holds about 4.67% in Snowflake while DAT carries roughly 4.19% exposure.
The rebound erased a year-to-date drawdown that had pressured the stock near 20%. Positive sentiment quickly spread across the enterprise software complex on Wall Street.
