Markets SNOW -1.16% MAY 30, 2026

Snowflake tops $1.39B in Q1, signs $6B AWS deal, surges 35%

SNOW raised full-year product revenue guidance to $5.84B and inked a five-year Graviton infrastructure pact with AWS as Q1 grew 33% YoY.

BY HENLEY MARRAST · MARKETS DESK

Snowflake (NYSE: SNOW) reported $1.39 billion in total revenue for the quarter ended April 30, up 33% year-over-year and well ahead of the $1.32 billion LSEG consensus, sending shares up as much as 36% after-hours Wednesday in what Bloomberg flagged as the stock’s biggest move in more than five years.

Product revenue came in at $1.33 billion, up 34%, and remaining performance obligations climbed 38% to $9.21 billion. Net revenue retention expanded to 126%. CEO Sridhar Ramaswamy framed it as “the strongest sequential dollar growth in our history,” and the customer-concentration data did the talking: 779 accounts now spend more than $1 million on a trailing-12-month basis, with CFO Brian Robins flagging 46 customers crossing that threshold in Q1 versus 26 a year ago. Forbes Global 2000 penetration reached 813.

Management raised full-year product revenue guidance to $5.84 billion from $5.66 billion, against a Bloomberg-tracked analyst average of $5.68 billion. Q2 product revenue is guided to $1.415 billion to $1.420 billion, comfortably above the $1.37 billion LSEG print. Gross margins landed at 66.6%, with the 75% annual target reiterated.

The structural news, though, is the AWS pact.

Snowflake disclosed a five-year, $6 billion infrastructure agreement with Amazon Web Services, tied per Reuters to the Graviton CPU line and deeper AWS Marketplace integration. The escalation curve is the story: the IPO-era deal was $1.2 billion over five years, revised in 2023 to $2.5 billion, and now roughly $1.2 billion per year on average. CNBC reads the Graviton tie-in as a signal that agentic AI workloads are consuming general-purpose CPU cycles rather than only GPU capacity, the same logic behind Meta’s April 2026 disclosure that it would draw on hundreds of thousands of Graviton chips.

Snowflake also signed a definitive agreement in May to acquire Natoma, an enterprise Model Context Protocol platform for AI agents, for an undisclosed sum. The MCP buy and the Graviton lean-in fit together: an architecture bet that the next leg of enterprise AI spend routes through agent orchestration on commodity silicon, not just frontier-model training. The SaaSpocalypse narrative of 2024 is, for one quarter at least, retired.

Sources

About the author

Henley Marrast

MARKETS DESK

Henley Marrast covers AI-equity flow, accelerator demand, and earnings prints for AI Sheet Report. She leads coverage of the public AI complex from the New York markets desk, with a focus on the daily tape and quarterly results. She has been writing about technology markets for several years.