New York, May 28, 2026, 11:03 EDT
- Snowflake shares jumped after the company lifted its product revenue outlook for fiscal 2027.
- Investors got a clearer AI-infrastructure story after a five-year, $6 billion AWS agreement.
- Analysts raised their price targets. Valuation and usage-based sales are still key swings.
Snowflake Inc. shares rocketed over 33% late Thursday morning after the company reported a strong outlook and signed a $6 billion deal with Amazon Web Services, which is shifting the stock into the AI infrastructure spotlight. Shares last traded at $233.38, up $58.12. The stock touched $243.99 earlier in the session.
Investors have been debating if AI spending helps or hurts software companies. Snowflake cleared that up, saying more customers are turning to its platform to handle data for AI projects. The company also raised its full-year product revenue outlook.
Snowflake’s first-quarter revenue rose 33% to $1.39 billion. Product revenue, which comes from customers’ use of compute, storage, and data-transfer on the platform, was up 34% to $1.33 billion. The company raised its fiscal 2027 product revenue outlook to $5.84 billion, up from $5.66 billion. Remaining performance obligations increased 38% to $9.21 billion, Snowflake said.
Snowflake CEO Sridhar Ramaswamy called AI a “powerful tailwind” in the company’s latest release. CFO Brian Robins said Snowflake had 779 customers who spent over $1 million in the past year. Of those, 46 joined the $1 million-plus group during the quarter. Snowflake Investors
The AWS deal is also helping the rally. Reuters said Snowflake is getting five years of access to AWS Graviton processors and AI infrastructure, plus more product integration and joint sales through AWS Marketplace. Gil Luria at D.A. Davidson said the agreement “adds another element” to Snowflake’s growth path. Reuters
That flipped sentiment on the stock quickly. Reuters said at least 30 analysts boosted their price targets after the news, pushing the median target up to $280 from $230. Matt Britzman at Hargreaves Lansdown said the move showed how fast the mood can shift when a company proves AI is lifting real revenue instead of just turning up in slide decks.
William Blair analysts said the results showed a “clear inflection for AI adoption” among Snowflake clients, according to Investopedia. Wedbush bumped its target to $280 from $270, saying Snowflake’s infrastructure might be a moat. Shares had been down about 20% for the year going into Thursday, but the rally brought them back into the green for 2026. Investopedia
Snowflake isn’t the only focus in software right now. Investors are separating software names into two groups: those that could get squeezed by AI agents, and those that might supply the data backbone for those same tools. With Snowflake’s stronger outlook, deeper AWS partnership, and growth in AI tool use, buyers had enough to put it in the latter camp.
Other stocks in the space are getting attention too. Datadog is valued at about $82.6 billion, a little higher than Snowflake, which has a $79.4 billion market value. MongoDB trades close to $26.3 billion. All three are high-growth software names tied to the debate over AI spending.
Snowflake shares are still expensive. Reuters said the company trades at about 85 times estimated earnings, similar to Datadog but much higher than MongoDB. That multiple shows investors are paying up for forecasted profit growth. If AI initiatives in the enterprise stay in testing or if this quarter’s pickup fades, Snowflake’s usage-based setup could put its new outlook at risk.
Snowflake is getting buyers on the turn for now. The company beat the numbers. Wall Street also has a partnership story, a capacity angle and fresh evidence that AI demand is already filling the income statement.
