Snowflake Raises FY27 Revenue Guidance 31% to $5.84B, Secures $6B AWS Deal
SNOW•Snowflake signed a five-year, $6 billion AWS deal for Graviton chip access and closer cloud integration with customer workloads. It raised fiscal 2027 product revenue guidance to $5.84 billion (31% growth), above prior $5.66 billion outlook and analysts’ $5.68 billion estimate.
1. AWS Deal and Upgraded Forecast
Snowflake signed a five-year, $6 billion agreement with Amazon Web Services to leverage Graviton processors and embed its data platform closer to AWS workloads. Alongside the deal, it lifted fiscal 2027 product revenue guidance to $5.84 billion, marking 31% growth and surpassing both the prior $5.66 billion outlook and analysts’ $5.68 billion estimate.
2. Strong Q1 Product Revenue and AI Tool Adoption
In the fiscal first quarter ended April 30, product revenue climbed 34% to $1.33 billion, beating the $1.27 billion consensus, while remaining performance obligations reached $9.21 billion. Adoption of AI offerings accelerated, with users of its AI-assisted coding tool doubling to 7,100 customers year-over-year.
3. Analyst Revisions and Growth Momentum
Over 30 analysts raised price targets, lifting the median target from $230 to roughly $280, reflecting confidence in Snowflake’s AI-driven revenue prospects. The company’s next challenge is maintaining momentum as enterprise customers transition from AI experimentation to significant production spending.
