Snowflake Q1 Revenue Up 33%, Adjusted EPS $0.39, $6 B AWS Pact
SNOW•Snowflake reported Q1 fiscal 2027 revenue of $1.39 billion, up 33% year-over-year, with product revenue of $1.33 billion (34% growth) and adjusted earnings of $0.39 per share. The company also inked a $6 billion AWS spending deal and raised full-year product revenue guidance to $5.84 billion (31% growth).
1. Q1 Financial Performance
Snowflake delivered Q1 revenue of $1.39 billion, a 33% increase from a year earlier, with product revenue reaching $1.33 billion, up 34%. Adjusted earnings were $0.39 per share versus $0.32 expected, driving shares up as much as 36% in after-hours trading.
2. AWS Collaboration Deal
Snowflake committed $6 billion in infrastructure spending over five years to Amazon Web Services, its largest AWS investment to date. The agreement will expand Snowflake’s use of AWS Graviton processors and cloud-based GPU resources to support advanced AI workloads.
3. Updated Guidance and Customer Metrics
The company raised full-year product revenue guidance to $5.84 billion (31% growth) and non-GAAP operating margin outlook to 13.5%. Second-quarter product revenue is projected at $1.415–1.420 billion with a 12.5% margin. Snowflake ended the quarter with 779 customers generating over $1 million in trailing-12-month revenue, up 29%, and remaining performance obligations of $9.21 billion, up 38%.
4. Strategic Acquisitions and AI Initiatives
Snowflake signed a definitive agreement to acquire Natoma, an enterprise AI agent platform, to bolster its AI strategy. The company is positioning itself in the ‘‘agentic enterprise’’ era, aiming to integrate AI agents that automate reasoning over data and coordinate workflows for real business outcomes.
