Snowflake’s fiscal Q1 earnings and revenue topped estimates, fueled by AI demand and a $6 billion Amazon compute deal.
Snowflake shares surged 35% after the company reported fiscal first-quarter earnings and revenue above Wall Street expectations, driven by strong demand for its AI-powered tools. The software maker also announced a $6 billion deal to expand its use of Amazon’s in-house AI chips, boosting growth prospects.
Analysts had anticipated $1.37 billion in product revenue and an 11.9% adjusted operating margin for the quarter. Snowflake delivered $1.415 billion to $1.420 billion in revenue and a 12.5% margin, alongside raised guidance for AI-driven products like Cortex Code and Snowflake Intelligence.
The results eased concerns about AI displacing software-as-a-service, sparking a broader rally in tech stocks. ServiceNow, Oracle, and Palantir also gained following the announcement.