Business
May 28, 2026
Microsoft, Dell Each Get $9.7B From US Government to Cut Costs
Key Takeaways
- Snowflake’s fiscal first-quarter profit and revenue exceeded expectations, leading to a 34% surge in its stock after-hours
- The company also announced an expanded $6 billion AI collaboration with Amazon Web Services.
- Snowflake also raised its revenue projections for the rest of the year, signaling optimism in an AI-dominated market.
Cloud data warehouse company Snowflake (SNOW) saw its stock surge 34% after hours after announcing a partnership with Amazon’s (AMZN) AWS. The former’s fiscal first-quarter earnings report blasted past Wall Street estimates, reporting Q1 2027 revenue of $1.39 billion, exceeding the $1.32 billion estimate, and adjusted EPS of $0.39, which significantly beat the $0.32 projection. While the earnings and rest-of-year projections were great, the highlight of the day for Snowflake was a separately announced partnership with Amazon’s cloud computing product.
Also Read: US-Iran Peace Deal Still Uncertain, But Oil Prices are Falling
Snowflake Signs Five-year, $6 Billion AI Deal with AWS
Snowflake (SNOW) signed its largest-ever infrastructure deal, a five-year, $6 billion agreement with Amazon Web Services to accelerate enterprise AI adoption using Graviton processors and AI chip infrastructure. The latest deal will include deeper product integrations around generative and agentic AI, expanded go-to-market efforts through AWS Marketplace and workload migrations aimed at helping businesses move from experimenting with AI projects to using them routinely.
Additionally, Snowflake announced new projects with AWS in 10 new regions. New locations include New Zealand (Auckland), South Africa (Cape Town), Thailand (Bangkok), AWS European Sovereign Cloud, and others. The new launches will help customers meet data residency requirements and deploy AI closer to where their business operates.
“AI has generated enormous excitement, but for enterprises, the real challenge and opportunity is turning intelligence into action,” said Sridhar Ramaswamy, CEO of Snowflake.
“We are moving into the era of the agentic enterprise, where AI systems don’t just answer questions, but help organizations reason over trusted data, coordinate workflows, and drive real business outcomes. 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.”
Also Read: Robinhood Exchange to Allow Users to Use AI to Trade Stocks
“Enterprises are rapidly moving from experimenting with AI to putting intelligent agents to work that drive real business outcomes,” Matt Garman, CEO of AWS, also added in the press release.
“Snowflake has built on AWS since day one, and their deepened commitment to run on Graviton delivers the world-class performance, flexibility, and cost savings customers need to run data warehousing and AI workloads at scale.”
Snowflake’s Earnings to Help SNOW Stock Rebound After 19% Slip Year-to-Date?
As mentioned previously, Snowflake (SNOW) stock soared as much as 34% after hours following the AWS announcement and earnings report. However, the stock remains down 19% YTD, as the cloud company has been hit hard in 2026. The stock’s bounce began on April 10, with shares up 45% since that year-low. While AI has dominated the software industry and stock market in 2026, Snowflake insists that data warehousing could be immune from the disruption.
As a result, the cloud company raised its revenue projections for the rest of the year, signaling optimism in an AI-dominated market. Looking ahead, Snowflake forecasts second-quarter product revenue coming in between $1.415 billion and $1.42 billion, well above the analyst consensus expectation of $1.37 billion. For the full-fiscal year, the AI data cloud company expects product revenue totaling $5.84 billion, up from its previous $5.66 billion view and above Wall Street’s $5.67 billion view.
This could certainly be the spark for a rebound in Snowflake (SNOW) that could proceed into the Summer. 20 out of 21 Wall Street analysts tracked by TipRanks rate SNOW stock a buy at time of writing. Further, based on these analysts’ 12 month price targets for Snowflake, the average price target is $224.50 with a high forecast of $282.00 and a low forecast of $125.00. The average price target represents a 28.10% change from SNOW stock’s closing price of $175.26. Further, five-star Wedbush analyst Daniel Ives reiterated his buy rating on the stock, while raising his target to $250. After hours, SNOW already trades at $240.
Also Read: What Is Tokenization: BlackRock Is In and Here Is How You Get In
