Snowflake $SNOW reported first-quarter revenue of $1.39 billion, up 33% from a year earlier, and announced a $6 billion, five-year spending commitment to Amazon $AMZN Web Services on Wednesday, sending Snowflake stock sharply higher in after-hours trading.
Product revenue, the company's primary metric, reached $1.33 billion, a 34% year-over-year increase that Snowflake said represented the strongest sequential dollar growth in its history. The Wall Street consensus, per LSEG estimates cited by CNBC, had called for revenue of $1.32 billion and adjusted earnings of 32 cents per share. On an adjusted basis, earnings came in at 39 cents per share.
Alongside the earnings results, Snowflake announced a multi-year strategic collaboration agreement with AWS covering $6 billion in infrastructure spending over five years, its largest commitment to the cloud provider to date. Under the agreement, Snowflake plans to broaden its reliance on Graviton chips alongside cloud-based GPU resources to support AI workloads. Snowflake was founded on AWS eleven years ago, and the majority of its customers run on AWS today.
"We are moving into the era of the agentic enterprise, where AI systems don't just answer questions, but help organizations reason over trusted data, coordinate workflows, and drive real business outcomes," Snowflake CEO Sridhar Ramaswamy said in a statement.
Snowflake also raised its full-year product revenue guidance to $5.84 billion, representing 31% year-over-year growth, up from a prior forecast of $5.66 billion, or 27% growth. The company also raised its full-year non-GAAP operating margin outlook to 13.5% from 12.5%.
Looking to the second quarter, the company projected product revenue in the range of $1.415 billion to $1.420 billion with a non-GAAP operating margin of 12.5%. That topped StreetAccount consensus figures of $1.37 billion in product revenue and an 11.9% margin, as noted by CNBC.
The company ended the quarter with 779 customers generating more than $1 million in trailing 12-month product revenue, up 29% year over year. That figure reflects an accelerating pace of enterprise adoption: CFO Brian Robins said 46 customers reached the million-dollar threshold in the most recent quarter, nearly double the 26 who did so in the year-earlier period. Remaining performance obligations reached $9.21 billion, up 38% year over year.
Snowflake also said it signed a definitive agreement to acquire Natoma, an enterprise platform for AI agents, for an undisclosed sum.
After-hours trading saw Snowflake shares surge as much as 36%.