Snowflake Q1 earnings beat expectations, stock rises 36%

Snowflake Inc. saw its stock surge significantly in late trading Wednesday after reporting first-quarter earnings that exceeded analyst expectations and announcing a major new commitment to Amazon Web Services infrastructure. The cloud data platform company reported earnings of 39 cents per share, beating the Wall Street target of 32 cents. Revenue reached $1.39 billion, a 33% increase from the same period last year and surpassing the consensus estimate of $1.32 billion.

The company also announced a five-year agreement to spend $6 billion on AWS cloud infrastructure, including a commitment to use more of Amazon's custom artificial intelligence chips. This deal follows similar large-scale infrastructure commitments by other AI firms to AWS in recent months. Separately, Snowflake announced the acquisition of Natoma, an enterprise-grade platform for integrating AI agents with data.

In its earnings report, Snowflake raised its full-year revenue guidance, now projecting approximately $5.84 billion in product revenue, up from a previous forecast of $5.66 billion. Company executives cited strong momentum in both its core business and in artificial intelligence adoption. The Chief...