Snowflake (SNOW) stock jumped about 40% on May 28, 2026, erasing a 20% year-to-date drop in one session. The AI infrastructure name beat earnings estimates and unveiled a $6 billion deal with Amazon Web Services.
The single-day move repositioned Snowflake from a slowing software story into a core data layer for enterprise artificial intelligence. Investors credited accelerating product revenue, raised full-year guidance, and a fresh agentic AI acquisition.
Earnings Beat Resets the AI Infrastructure Story
Snowflake posted first-quarter fiscal 2027 revenue of $1.39 billion, up 33% year over year and beating $1.32 billion consensus.
Product revenue grew 34% to $1.33 billion, the biggest sequential dollar add Snowflake has ever posted per CEO Sridhar Ramaswamy.
Non-GAAP earnings reached $0.39 per share against $0.32 consensus. Net revenue retention held at 126%, and remaining performance obligations expanded 38% to $9.21 billion.
The print pulled Snowflake back among AI stocks worth watching this quarter.
Management lifted full-year fiscal 2027 product revenue guidance to $5.84 billion, implying 31% growth, up from a prior 27% outlook.
“Snowflake is not even an AI company. It is the data infrastructure that AI runs on,” analyst Bull Theory remarked.
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The $6 Billion AWS Bet
Snowflake also signed a five-year, $6 billion deal with Amazon Web Services, its largest cloud commitment yet.
The arrangement covers AWS Graviton chips for general workloads and GPU-accelerated EC2 instances for AI model training. It also deepens integrations for agentic AI infrastructure.
“The acquisition extends Snowflake’s governance perimeter from data assets to AI actions and interactions across the enterprise,” read an excerpt in the press release.
The companies will pair on workload migrations and expanded sales motions through the AWS Marketplace. Lifetime sales there have topped $7 billion, per Snowflake.
The commitment lands as tech giants pour billions into AI buildouts, racing to lock in long-term enterprise data customers.
Snowflake separately said it would acquire Natoma, an enterprise Model Context Protocol platform for governing AI agents. The deal extends its agentic AI stack into identity and connectivity layers.
The moves back Ramaswamy’s case that Snowflake is becoming the governed data layer powering enterprise AI.
The single-session gain also lifted the stock among this year’s best-performing assets.
Continued upside depends on whether AI workloads convert into durable consumption revenue and how quickly customers move agents into production.
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