SNOW Stock Rallies After-Hours On $6B Amazon AI Deal, Strong Earnings Beat

• Snowflake to purchase Amazon’s custom Arm-based Graviton chips and graphics processing units.  
• Reports revenue of $1.39 billion in the first quarter, representing 33% year-over-year (YoY) growth.
• Acquires Natoma, an enterprise Model Context Protocol (MCP) platform for AI agents.

Snowflake (SNOW) share price soared about 36% after-hours on Wednesday after the AI cloud firm’s Q1 earnings surged past expectations along with strong full-year guidance, while a deal with Amazon (AMZN) provided added support.

The data and cloud firm announced a $6-billion multi-year infrastructure commitment to Amazon’s AWS, its largest to date, reflecting the accelerating enterprise demand for AI and data workloads running on AWS. 

Snowflake was founded on AWS eleven years ago, and ever since has surpassed $7 billion in lifetime sales and exceeded $2 billion in calendar year sales in 2025, more than doubling transaction growth year-over-year. 

The company, in a separate release, announced the takeover of Natoma, which is an enterprise model context protocol (MCP) platform for AI agents. MCP was introduced by Anthropic and helps to securely connect AI models to data sources and tools. 

“Agents don’t just need access to data…they need the right context, permissions and policy guardrails to operate safely inside the enterprise,” said Sridhar Ramaswamy, CEO of Snowflake. 

SNOW Q1 Results 

Snowflake reported revenue of $1.39 billion in the first quarter, representing 33% YoY growth, surging past analyst expectations of $1.32 billion for the quarter ending April. Total revenues included product revenues of $1.33 billion in the first quarter, a 34% YoY jump. 

The firm’s earnings came in at $0.39 per share, significantly beating expectations of $0.32 per share as per data from Fiscal.ai. 

“AI continues to be a powerful tailwind for Snowflake, and Q1 marks a clear inflection point in that journey,’ added Ramaswamy.   

SNOW Q2 And Full-Year Guidance

SNOW expects product revenue of $1.42 billion in Q2, representing 30% growth from the same quarter last year. 

The company also raised its full-year product revenue guidance to $5.8 billion, up from its previous guidance of $5.7 billion.

SNOW Retail View 

Retail sentiment on Stocktwits was “extremely bullish” with “extremely high” message volumes. 

One user highlighted the upcoming Snowflake Summit with Anthropic’s CEO as the keynote speaker and expressed bullishness by saying the stock’s upward trend is not done yet. 

SNOW stock has lost 21.4% year-to-date. 

Read More: CRM Stock Dips After-Hours As Q2 Revenue Outlook Marginally Misses Expectations

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