Snowflake Surges 35% Premarket on Blowout Earnings and $6B AWS Deal

Snowflake shares rocketed more than 35% in premarket trading Thursday, Benzinga reported, after the cloud data company delivered a quarter that crushed Wall Street expectations and unveiled a landmark infrastructure commitment with Amazon Web Services.

A Quarter That Beat on Every Line

Snowflake’s first-quarter fiscal 2027 revenue reached $1.39 billion, a 33% jump from the same period a year ago. Analysts had penciled in $1.32 billion. The roughly $70 million beat was wide enough to shift sentiment sharply. Management moved quickly to raise its full-year product revenue target to $5.84 billion, implying 31% annual growth. CEO Sridhar Ramaswamy told investors the quarter represented a genuine turning point in the company’s AI monetisation story, not simply a narrative shift.

The $6 Billion Snowflake AWS Deal

Anchoring the bullish update was a freshly signed multi-year agreement with Amazon‘s AWS unit valued at $6 billion. The pact is structured to accelerate enterprise AI adoption while simultaneously reducing cloud compute costs for customers. Ramaswamy described Snowflake as the connective tissue running through modern corporate data operations. Two internal tools are driving that positioning. Cortex Code, which reached general availability in February, has already attracted more than 7,100 active accounts. Snowflake Intelligence is the second product deepening platform dependency for enterprise clients.

Background: A Stock Under Pressure Before Thursday

The surge arrives after a difficult stretch for SNOW. Heading into Thursday, the stock had shed roughly 20% year-to-date, badly underperforming the Nasdaq Composite’s near-15% gain over the same window. Over six months the decline was steeper still, approaching 30%. Investors had grown impatient waiting for AI spending across the enterprise sector to show up in actual vendor revenue rather than management commentary.

Margin Discipline Adds to the Bullish Case

Beyond revenue, Snowflake’s cost story impressed analysts. Non-GAAP operating margin widened by more than 300 basis points year-over-year to reach 12%. The company added just 17 net organic hires during the entire quarter, a deliberately lean approach to headcount. Full-year operating margin guidance was lifted to 13.5%. Chief Financial Officer Brian Robins called the shift in AI revenue opportunity a step-change rather than incremental progress. Patrick Moorhead, chief analyst at Moor Insights and Strategy, said the results could fundamentally re-rate how markets value data platform companies, arguing that improving unit economics now support the growth story structurally.

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