Snowflake has increased its product revenue forecast for the fiscal year 2027 following a strong quarterly revenue report. The company’s deal with AWS includes a US$6 billion infrastructure commitment for enterprise AI workloads on Amazon Web Services.
The updated forecast now predicts product revenue of US$5.84 billion for fiscal 2027, up from the previous estimate of US$5.66 billion. Second-quarter product revenue is expected to be between US$1.415 billion and US$1.420 billion, higher than the US$1.37 billion analysts had anticipated.
In the first quarter, Snowflake reported revenue of US$1.39 billion, surpassing analysts’ expectations of US$1.32 billion. Product revenue saw a year-over-year growth of 33.9%, reaching US$1.33 billion. Following the forecast update, the company’s shares jumped 36% in after-hours trading.
The five-year agreement with AWS, valued at US$6 billion, includes a significant infrastructure commitment, making it Snowflake’s largest agreement to date. The deal covers the use of AWS Graviton processors and AI infrastructure, as well as deeper product integrations between the two companies.
Snowflake’s CEO, Sridhar Ramaswamy, noted that the revised fiscal 2027 outlook reflects the strength of the company’s core data platform business and the additional contribution from AI capabilities. Demand for data warehousing products remains high, with tools like Cortex Code and Snowpark supporting development, data processing, and machine learning use cases.
The agreement also expands activity through AWS Marketplace, where Snowflake’s sales have exceeded US$7 billion over time, with over US$2 billion in sales in calendar year 2025 alone. Snowflake is also expanding its AWS footprint in 10 new regions to support data residency requirements and local deployment needs.
Gartner projects a 21.3% growth in public cloud services in 2026, with the market expected to reach US$1.48 trillion by 2029. The AWS agreement aligns Snowflake more closely with its largest partner and enhances its role in customers’ transition to AI technologies.
The article also mentions the expansion of AWS Marketplace and upcoming enterprise technology events and webinars. The content seamlessly integrates into a WordPress platform, preserving the original HTML tags, images, and key points.
