Snowflake Surges 15% on $6B Amazon Deal and Earnings Beat
Snowflake (SNOW) shares surged 15% after the company announced a $6 billion multi-year deal with Amazon (AMZN) and reported Q1 earnings that topped expectations.
MSFTMicrosoft Corporation
AMZNAmazon.com, Inc.
SNOWSnowflake Inc.
LLYEli Lilly and Company
CVSCVS Health CorporationKey Numbers
Snowflake (SNOW) reported fiscal Q1 2026 results that beat analyst estimates, alongside a strategic $6 billion deal with Amazon (AMZN). The stock jumped 15% in today's trading.
Key Financial Results
| Metric | Q1 2026 | Analyst Estimates |
|---|---|---|
| Revenue | $874M | $850M |
| Revenue Growth | 29% YoY | 25% |
| EPS | $0.18 | $0.14 |
Highlights from the Report
- Amazon Deal: A multi-year agreement worth $6 billion to expand Snowflake's platform on AWS, with Amazon committing to purchase $2.5 billion in Snowflake services.
- Customer Growth: Added 150 new customers in the quarter, bringing total customers to 8,200.
- Net Retention Rate: 128%.
Guidance
Snowflake expects Q2 revenue between $920M and $930M, above the $900M consensus. The company also raised its full-year revenue guidance to $3.8 billion.
Impact on Stock
The stock surged 15% in today's session, reaching a 6-month high, driven by the Amazon deal and strong earnings.
What This Means for Investors
The Amazon deal strengthens Snowflake's position in the cloud computing market and underscores strong demand for its platform. The positive results and raised guidance suggest continued growth, but investors should watch for increasing competition from Microsoft (MSFT) and Google.
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