Key Takeaways:
- Revenue rose 34% to $1.39 billion, beating estimates by $70 million
- Full-year guidance raised to $5.84 billion from $5.66 billion
- Stock surged more than 30% in after-hours trading
Key Takeaways:

Snowflake Inc. reported Q1 revenue of $1.39 billion, up 34% from a year earlier and $70 million above consensus, as AI demand accelerated adoption of its cloud data platform.
"The results mark a clear inflection point," Chief Executive Officer Sridhar Ramaswamy said in a statement. "We are seeing strong momentum from both AI-driven acceleration of our core platform and growing adoption of our first-party AI products."
Adjusted earnings per share came in at $0.39, beating the $0.32 average estimate by $0.07. Product revenue, the company's key operating metric, reached a record during the quarter. Chief Financial Officer Brian Robins raised the full-year revenue outlook to $5.84 billion, up from a prior forecast of $5.66 billion, citing surging AI demand across the customer base.
The company also announced a $6 billion commitment to expand its collaboration with Amazon Web Services over five years, aimed at accelerating enterprise adoption of agentic AI. Snowflake separately said it plans to acquire Natoma, a platform providing secure connectivity for AI agents. Wedbush analyst Dan Ives said the results showed "AI acting as a powerful tailwind for new and existing customers" and predicted the success could boost confidence across the broader software sector.
Shares surged more than 35% in extended trading to around $240, erasing most of their 20% year-to-date decline. The stock had fallen below $120 in April before recovering. The after-hours move puts Snowflake above Wall Street's consensus price target of about $222, according to Visible Alpha data. Amazon shares were little changed in after-hours trading after gaining close to 3% during Wednesday's regular session.
The guidance raise signals management expects AI demand to sustain its momentum through the remainder of the fiscal year. Investors will watch the next earnings call for updates on segment margins and the integration of the Natoma acquisition.
This article is for informational purposes only and does not constitute investment advice.