By Christopher Kuo
Snowflake raised its full-year outlook for product revenue as increasing demand for its artificial intelligence tools drove double-digit revenue growth in its first quarter.
"AI continues to be a powerful tailwind for Snowflake, and Q1 marks a clear inflection point in that journey," Chief Executive Sridhar Ramaswamy said.
The cloud storage company on Wednesday posted a first-quarter loss of $295.6 million, or 86 cents a share, compared with a loss of $430.1 million, or $1.29 cents a share, a year earlier.
Stripping out certain one-time items, the company reported earnings of 39 cents a share. Analysts polled by FactSet expected 32 cents a share.
Revenue rose 33% to $1.39 billion. Analysts expected $1.32 billion in revenue. Product revenue rose 34% to $1.33 billion.
"We are seeing strong momentum from both AI-driven acceleration of our core platform and growing adoption of our first-party AI products, positioning Snowflake to lead in this new era," Ramaswamy said.
As its business expands, the cloud storage company plans to pay $6 billion in the next five years for access to Amazon's Graviton chips inside Amazon Web Services data centers, The Wall Street Journal reported Wednesday. The deal will make Snowflake one of AWS's largest customers for central processing unit-based computing, The Journal reported.
Snowflake's shares soared 30% to $227.24 following the report in after-hours trading. The stock closed down 1.3% at $175.26 in the market session. For the year, shares are down 20%.
The company signed a definitive agreement in May to acquire Natoma, an enterprise model context protocol platform for artificial intelligence agents.
For the second quarter, the company is projecting product revenue growing 30% to $1.42 billion. Analysts are expecting product revenue of $1.37 billion.
Snowflake is expecting full-year product revenue of $5.84 billion, up from previous guidance of $5.66 billion. Analysts are expecting $5.67 billion.
Write to Christopher Kuo at chris.kuo@wsj.com
(END) Dow Jones Newswires
May 27, 2026 16:34 ET (20:34 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.