Snowflake Jumps 30% on $6 Billion Amazon Cloud Deal and $5.84 Billion Sales Outlook
Updated
Updated · Bloomberg · May 27
Snowflake Jumps 30% on $6 Billion Amazon Cloud Deal and $5.84 Billion Sales Outlook
3 articles · Updated · Bloomberg · May 27
Snowflake shares surged nearly 30% in late trading after the company paired a raised fiscal 2027 forecast with a new $6 billion multiyear agreement for Amazon cloud services and chips.
Product revenue is now projected to rise about 31% to $5.84 billion by January 2027, up from Snowflake’s $5.66 billion outlook in February and above analysts’ $5.68 billion estimate.
AI demand drove the stronger guidance, underscoring Snowflake’s pitch that its data platform is becoming more central as companies build and run AI applications.
Product sales account for about 95% of Snowflake’s total revenue, making the upgraded forecast and Amazon tie-up a key signal for its broader growth trajectory.
Is Snowflake’s booming AI forecast a sustainable strategy or just riding a temporary wave of market hype?
Can Snowflake win the race to become the essential data platform for enterprise AI against its giant competitors?
As Snowflake becomes central to corporate AI, is its platform truly secure against the escalating cyber threats?