Shares of Snowflake (NYSE:SNOW | SNOW Price Prediction) are rocketing higher on Thursday morning, with the stock up 35% to around $240 after the company posted a blowout Q1 FY2027 report and unveiled a $6 billion multiyear deal with Amazon‘s (NASDAQ:AMZN) AWS (Amazon Web Services). SNOW stock closed at $175.26 on Wednesday.
The move would mark one of the largest single-day jumps in company history and a sharp reversal from a brutal setup. Snowflake stock was down 20% year to date (YTD) heading into the print and was trading well below its 200-day moving average of $202.49.
CEO Sridhar Ramaswamy used the release to call Q1 a “clear inflection point” for AI inside the Snowflake platform. That framing, paired with the Amazon megadeal and a raised forecast, lit a fire under a name that had been stuck in a downtrend since January.
Earnings Beat and $6 Billion AWS Deal Spark the Surge
Snowflake delivered Q1 FY2027 product revenue of $1.33 billion, up 34% year over year (YoY), which the company described as the strongest sequential dollar growth in its history. Total revenue landed at $1.39 billion, beating consensus by 5%.
Non-GAAP EPS of $0.39 topped the $0.32 consensus, the fourth straight EPS beat for Snowflake.
Remaining performance obligations climbed to $9.21 billion, up 38%, with net revenue retention holding at 126%. Snowflake added 616 net new customers, and the count of accounts spending more than $1 million in trailing 12-month product revenue reached 779.
The headline catalyst beyond the print is the new multiyear $6 billion agreement with Amazon Web Services. Built around access to Amazon Graviton CPUs over five years, the deal anchors Snowflake’s compute roadmap and validates Graviton economics for the highest-end enterprise data workloads.
AI Inflection Point Reframes a Bearish Setup
Snowflake’s management raised its full-year FY2027 product revenue guidance to $5.84 billion (31% growth) from the prior $5.66 billion (27% growth), and lifted its non-GAAP operating margin target to 14% from 13%. That guidance raise is what separates a one-quarter beat from a real thesis change for Snowflake.
Ramaswamy declared that “AI continues to be a powerful tailwind for Snowflake, and Q1 marks a clear inflection point in that journey,” pitching the platform as the “control plane for the Agentic Enterprise” via Cortex Code and Snowflake Intelligence. The company disclosed more than 13,600 accounts using its AI capabilities, with Cortex Code in use across 7,100+ accounts and Snowflake Intelligence accounts more than doubling sequentially.
Coming into today, SNOW stock had been a frustrating holding for the bulls, with its 50-day moving average at $153.04 and shares trading well below the 52-week high of $280.67. Today’s surge likely forces a wave of short covering and benchmark-chasing buys. The Wall Street consensus price target heading in was $229.14, a level that’s being cleared this morning.
Peers Follow as Amazon Gets a Quiet Win
Amazon stock is also catching a bid pre-market on a deal that quietly delivers recurring multibillion-dollar AWS infrastructure revenue and underscores the Graviton flywheel. AWS posted Q1 2026 revenue of $37.59 billion, up 28%, its fastest growth in 15 quarters, with operating margins of 38%.
For Amazon, the Snowflake commitment lands alongside marquee compute deals with OpenAI, Anthropic, and Meta Platforms, reinforcing the case that AWS is winning the enterprise AI infrastructure layer. AMZN stock is up 18% YTD and has gained 32% over the past year. Amazon CEO Andy Jassy framed the moment as one of the “biggest inflections of our lifetime” on his most recent call.
Other data and AI infrastructure names will likely re-rate on this print from Snowflake. Cortex Code adoption validates the thesis that enterprises are now actively spending on production AI workloads rather than pilots and proofs of concept.
What to Watch
The Snowflake earnings call was held Wednesday at 5:00 p.m. ET, and analyst notes are hitting the tape into Thursday’s open. Watch for whether SNOW stock holds the $240 level into the close, since partial gap fills are common after moves of this magnitude.
The next near-term catalyst for Snowflake is the Snowflake Summit, scheduled for June 3 through June 6, where management is expected to unveil additional product capabilities and host its Investor Day. Momentum traders may keep SNOW stock active through that event.
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