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Snowflake Shares Surge 35% After Hours. $6 Billion Expansion of Partnership With Amazon AWS, First-Quarter Revenue Jumps 33%

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AuthorAndy Chen

May 27, 2026 9:28 PM

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Snowflake shares surged following Q1 FY2027 earnings and a new partnership with Amazon AWS. Revenue reached $1.39 billion, up 33% year-over-year, with net revenue retention at 126% and RPO at $9.21 billion. The company provided strong guidance for Q2, forecasting an adjusted operating margin of 12.5% and product revenue between $1.415 billion and $1.42 billion. Snowflake also announced its acquisition of AI startup Natoma and a strategic cooperation agreement with AWS, committing $6 billion in infrastructure spending over several years to accelerate enterprise AI adoption.

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Tradingkey - Snowflake ( SNOW) Following the announcement of its new partnership with Amazon AWS and its first-quarter earnings report, the company's shares surged over 35% in after-hours trading; as of press time, they remained up 33% at $233.10.

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On the news front, Snowflake released its first-quarter results for fiscal 2027. The company reported revenue of $1.39 billion, up 33% year-over-year. Net revenue retention was 126%. Additionally, remaining performance obligations (RPO) reached $9.21 billion, up 38% year-over-year. The company has 779 customers with trailing 12-month product revenue exceeding $1 million, a 29% increase year-over-year.

At the same time, Snowflake provided strong guidance, forecasting a second-quarter adjusted operating margin of 12.5% and product revenue between $1.415 billion and $1.42 billion. Both figures exceeded market expectations of 11.9% and $1.37 billion.

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In addition, Snowflake stated it would acquire AI startup Natoma, though the deal's value was not disclosed.

More significantly, Snowflake announced a multi-year strategic cooperation agreement with Amazon Web Services (AWS) to accelerate the application of enterprise AI agents. Snowflake committed $6 billion in infrastructure spending to AWS over several years, marking its largest single investment to date.

Specifically, Snowflake will purchase services and technology from AWS over a five-year period. Snowflake plans to expand its use of Amazon Graviton general-purpose chips and cloud GPUs for AI.

Snowflake CEO Sridhar Ramaswamy stated: "AI has sparked an unprecedented industry craze, but for enterprises, the real challenge and opportunity lie in turning intelligence into action. Snowflake is entering the era of the agentic enterprise, where AI systems no longer just answer questions, but help companies reason with trusted data, coordinate workflows, and create tangible business value. Through our partnership with AWS, we are enabling enterprises to bring AI directly to governed data environments, accelerating the pace of innovation, improving operational transparency, and achieving measurable business impact at scale."

This content was translated using AI and reviewed for clarity. It is for informational purposes only.

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Disclaimer: The content of this article solely represents the author's personal opinions and does not reflect the official stance of Tradingkey. It should not be considered as investment advice. The article is intended for reference purposes only, and readers should not base any investment decisions solely on its content. Tradingkey bears no responsibility for any trading outcomes resulting from reliance on this article. Furthermore, Tradingkey cannot guarantee the accuracy of the article's content. Before making any investment decisions, it is advisable to consult an independent financial advisor to fully understand the associated risks.

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