Snowflake Shares Surge 30% on $6 Billion Amazon Deal and $5.84 Billion Sales Outlook
Updated
Updated · Bloomberg · May 28
Snowflake Shares Surge 30% on $6 Billion Amazon Deal and $5.84 Billion Sales Outlook
3 articles · Updated · Bloomberg · May 28
Summary
Snowflake shares jumped nearly 30% in late trading—the biggest gain in more than five years—after the company paired a raised annual forecast with a multiyear Amazon cloud-and-chips agreement.
Product revenue is now projected to rise about 31% to $5.84 billion in the fiscal year ending January 2027, up from Snowflake’s $5.66 billion forecast in February and above analysts’ $5.68 billion estimate.
The stronger outlook reflects AI-driven demand for Snowflake’s data software, with product sales accounting for about 95% of total revenue.
The $6 billion Amazon pact underscores how heavily AI expansion is tying software growth to long-term commitments for cloud capacity and chips.