Snowflake has raised its product revenue forecast for the fiscal year 2027 after reporting stronger-than-expected quarterly revenue, with the Snowflake-AWS deal adding a US$6 billion infrastructure commitment for enterprise AI workloads on Amazon Web Services.
The company now expects fiscal 2027 product revenue of US$5.84 billion, up from its earlier forecast of US$5.66 billion. It projected second-quarter product revenue of between US$1.415 billion and US$1.420 billion. Analysts had expected US$1.37 billion, according to LSEG data cited in the company’s earnings coverage.
Snowflake’s first-quarter revenue reached US$1.39 billion, above the US$1.32 billion expected by analysts. Product revenue rose to US$1.33 billion, representing 33.9% year-over-year growth. Its shares rose 36% in extended trading after the forecast update.
AWS deal covers US$6bn infrastructure commitment
Alongside the earnings update, Snowflake announced a five-year agreement with AWS valued at US$6 billion. The agreement is tied to a multi-year infrastructure commitment to AWS, which Snowflake described as its largest to date.
Snowflake said it was founded on AWS 11 years ago, and most of its customers run on AWS today. The new agreement covers the use of AWS Graviton processors and AI infrastructure, as well as deeper product integrations between the two companies.
The agreement covers enterprise cloud workloads beyond Snowflake’s data warehousing business. It includes integrations for generative AI and agentic AI, broader use of AWS Marketplace, and support for workload migrations.
The companies said the arrangement is aimed at helping enterprise customers move AI projects from experimentation into regular use. The migration work applies to Snowflake’s data platform, where customers manage and process enterprise data.
Snowflake said the expanded agreement is built around bringing AI models closer to governed enterprise data, not requiring customers to move sensitive information between systems. Its Cortex AI tools support text-to-SQL, summarisation, sentiment analysis, and entity extraction in the Snowflake environment.
AWS is also providing the compute infrastructure behind the workloads covered by the agreement. Snowflake said it uses AWS Graviton processors for cloud workloads and GPU-accelerated Amazon EC2 instances for AI model training and inference.
Snowflake CEO Sridhar Ramaswamy said on a post-earnings call that the revised fiscal 2027 outlook reflected strength in the company’s core data platform business and additional contribution from AI abilities. It’s reported demand for its data warehousing products, and cited adoption of tools like Cortex Code and Snowpark, which support development, data processing, and machine learning use cases on the platform.
Marketplace sales pass US$7bn
The agreement also includes expanded activity through AWS Marketplace, where enterprise customers can buy and deploy cloud software and services. Snowflake said its AWS Marketplace sales have surpassed US$7 billion over time. It also said sales exceeded US$2 billion in calendar 2025, more than doubling year over year.
Snowflake is also expanding its AWS footprint in 10 new regions, including Auckland, Cape Town, Bangkok, and the AWS European Sovereign Cloud. The company said the regional expansion is intended to support data residency requirements and local deployment needs.
Gartner has forecast public cloud services growth of 21.3% in 2026, with the market projected to reach US$1.48 trillion by 2029.
Gil Luria, managing director at D.A. Davidson, said the AWS agreement aligns Snowflake more closely with its largest partner. He also said it gives Snowflake a larger role in customers’ transition to AI.
(Photo by Darius Cotoi)
See also: AWS expands Anthropic partnership with Claude Platform launch
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