Snowflake Stock Is Soaring After a Blowout Quarter and a New $6 Billion AWS Deal

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Daniel Sparks, The Motley Fool

Thu, May 28, 2026 astatine 9:39 AM CDT 4 min read

Shares of information unreality specializer Snowflake (NYSE:SNOW) soared much than 30% arsenic of this penning aft the institution reported fiscal first-quarter results connected Wednesday and, the aforesaid evening, unveiled a five-year, $6 cardinal spending committedness to Amazon (NASDAQ:AMZN) and its unreality arm, Amazon Web Services (AWS). The determination lifted the banal to a year-to-date precocious -- a crisp crook for a sanction that had been a laggard this year, down astir 19% successful 2026 earlier the report.

There was plentifulness to similar successful Snowflake's latest update. Product gross maturation reaccelerated, and a intimately watched measurement of lawsuit spending turned higher for the archetypal clip successful much than a year. On apical of that, absorption lifted its full-year outlook. Pair each of that with a elephantine caller ballot of assurance successful the Amazon deal, and it isn't hard to spot wherefore investors piled backmost in.

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But a one-day leap this ample raises a just question for anyone eyeing the banal today: however overmuch of the bully quality is already successful the price?

A Snowflake logo connected the wall.

Image source: Snowflake.

A maturation story, reignited

Importantly, the update showed a inclination of reaccelerating growth.

Product gross roseate 34% twelvemonth implicit twelvemonth to $1.33 cardinal successful the fiscal archetypal 4th of 2027 (the play ended April 30, 2026), up from 30% maturation successful the anterior 4th and 26% a twelvemonth earlier.

Just arsenic telling was the company's nett gross retention rate, which tracks however overmuch much existing customers walk compared with a twelvemonth earlier. That fig climbed to 126% -- its archetypal uptick aft 3 consecutive quarters astatine 125% pursuing a agelong descent amid fears the concern was cooling. A speechmaking supra 100% means customers support spending much implicit time, truthful the renewed ascent successful the cardinal metric suggests lawsuit usage maturation is accelerating.

Much of Snowflake's concern momentum traces to artificial quality (AI). Management said AI is pulling much enactment onto the level and lifting usage of Snowflake's halfway information tools, with newer offerings similar its Snowflake Intelligence adjunct among the fastest-adopted products successful institution past -- accounts utilizing Snowflake Intelligence much than doubled from the anterior quarter.

Given the company's beardown wide results, absorption raised its full-year merchandise gross forecast to $5.84 billion, implying astir 31% growth, up from a anterior telephone for astir 27%. It besides nudged up its full-year non-GAAP (adjusted) operating borderline target.

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