Cloud data firm Snowflake reports 33% year-over-year revenue growth to $1.39 billion, fueled by enterprise AI demand and a $6 billion AWS deal.
Snowflake (SNOW) shares jumped 38% in pre-market trading after reporting fiscal first-quarter revenue of $1.39 billion, a 33% year-over-year increase. The company cited accelerating enterprise AI demand and its AI products as key drivers of the strongest sequential product revenue growth in its history.
The results exceeded expectations, with Snowflake also announcing a multi-year, $6 billion collaboration with Amazon Web Services (AWS) to boost global enterprise AI adoption. The deal deepens its partnership with AWS and OpenAI, reinforcing its position in the AI-driven cloud data market.
Wedbush Securities analyst Dan Ives raised his price target on Snowflake from $270 to $280, reiterating an Outperform rating. The broader Tech-Software ETF (IGV) has rallied 24% since mid-April, reflecting investor optimism about AI-driven productivity gains.