Snowflake Stock Jumps on $6B AWS Graviton Pact, Q1 Beat

Snowflake announced a five-year, $6 billion infrastructure agreement with Amazon Web Services on Wednesday that focuses on AWS custom Graviton processors and next-generation AI infrastructure. Shares rose to a year-to-date high near $240 after the announcement.

The agreement is structured as a multiyear infrastructure spend rather than an equity investment. Snowflake committed to run future workloads on AWS custom silicon and related infrastructure to support enterprise agentic AI and to align its platform with AWS compute offerings.

For the first quarter Snowflake reported adjusted earnings of $0.39 per share, compared with $0.32 consensus, and revenue of $1.39 billion, up 33% year over year and above the $1.32 billion analysts expected. Remaining performance obligations increased 38% year over year to $9.21 billion.

CEO Sridhar Ramaswamy raised Snowflake’s full-year fiscal 2027 product revenue guidance to $5.84 billion from $5.66 billion.

Snowflake said the deal is set up to secure volume discounts tied to large-scale commitments; the company expects those discounts to help protect and potentially expand long-term gross margins and to strengthen commercial alignment with AWS’ sales channels. Snowflake has reported more than $7 billion in lifetime sales on the AWS Marketplace.

Patrick Walravens, senior analyst at JMP Securities, maintained a $325 price target after the results and the AWS agreement. In a research note he wrote that Snowflake Intelligence and Cortex Code “provide a huge competitive advantage,” and that those tools “automatically inherit the exact permissions, security protocols, and governance of the underlying enterprise data, solving the most critical operational blockers currently halting the enterprise adoption of autonomous AI agents.”

JMP Securities estimated the addressable market for combined data and AI offerings could reach about $355 billion by 2029.