Snowflake has raised its product income forecast for the fiscal 12 months 2027 after reporting stronger-than-expected quarterly income, with the Snowflake-AWS deal including a US$6 billion infrastructure dedication for enterprise AI workloads on Amazon Net Providers.
The corporate now expects fiscal 2027 product income of US$5.84 billion, up from its earlier forecast of US$5.66 billion. It projected second-quarter product income of between US$1.415 billion and US$1.420 billion. Analysts had anticipated US$1.37 billion, based on LSEG knowledge cited within the firm’s earnings protection.
Snowflake’s first-quarter income reached US$1.39 billion, above the US$1.32 billion anticipated by analysts. Product income rose to US$1.33 billion, representing 33.9% year-over-year progress. Its shares rose 36% in prolonged buying and selling after the forecast replace.
AWS deal covers US$6bn infrastructure dedication
Alongside the earnings replace, Snowflake introduced a five-year settlement with AWS valued at US$6 billion. The settlement is tied to a multi-year infrastructure dedication to AWS, which Snowflake described as its largest thus far.
Snowflake stated it was based on AWS 11 years in the past, and most of its prospects run on AWS immediately. The brand new settlement covers using AWS Graviton processors and AI infrastructure, in addition to deeper product integrations between the 2 firms.
The settlement covers enterprise cloud workloads past Snowflake’s knowledge warehousing enterprise. It consists of integrations for generative AI and agentic AI, broader use of AWS Market, and assist for workload migrations.
The businesses stated the association is aimed toward serving to enterprise prospects transfer AI initiatives from experimentation into common use. The migration work applies to Snowflake’s knowledge platform, the place prospects handle and course of enterprise knowledge.
Snowflake stated the expanded settlement is constructed round bringing AI fashions nearer to ruled enterprise knowledge, not requiring prospects to maneuver delicate info between programs. Its Cortex AI instruments assist text-to-SQL, summarisation, sentiment evaluation, and entity extraction within the Snowflake atmosphere.
AWS can be offering the compute infrastructure behind the workloads coated by the settlement. Snowflake stated it makes use of AWS Graviton processors for cloud workloads and GPU-accelerated Amazon EC2 situations for AI mannequin coaching and inference.
Snowflake CEO Sridhar Ramaswamy stated on a post-earnings name that the revised fiscal 2027 outlook mirrored power within the firm’s core knowledge platform enterprise and extra contribution from AI talents. It’s reported demand for its knowledge warehousing merchandise, and cited adoption of instruments like Cortex Code and Snowpark, which assist growth, knowledge processing, and machine studying use instances on the platform.
Market gross sales cross US$7bn
The settlement additionally consists of expanded exercise by AWS Market, the place enterprise prospects should purchase and deploy cloud software program and providers. Snowflake stated its AWS Market gross sales have surpassed US$7 billion over time. It additionally stated gross sales exceeded US$2 billion in calendar 2025, greater than doubling 12 months over 12 months.
Snowflake can be increasing its AWS footprint in 10 new areas, together with Auckland, Cape City, Bangkok, and the AWS European Sovereign Cloud. The corporate stated the regional enlargement is meant to assist knowledge residency necessities and native deployment wants.
Gartner has forecast public cloud providers progress of 21.3% in 2026, with the market projected to achieve US$1.48 trillion by 2029.
Gil Luria, managing director at D.A. Davidson, stated the AWS settlement aligns Snowflake extra intently with its largest companion. He additionally stated it provides Snowflake a bigger position in prospects’ transition to AI.
(Photograph by Darius Cotoi)
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