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Snowflake stock surged 36% on May 29 after the cloud data company posted stronger-than-expected quarterly results and expanded its artificial intelligence partnerships. The rally marked the company’s best trading day on record as enterprise AI demand accelerated across its platform.
The firm reported fiscal first-quarter revenue of $1.39 billion. Revenue increased 34% from the same period last year. Snowflake also announced a multiyear $6 billion agreement with Amazon Web Services to expand enterprise AI adoption globally. At the same time, the company deepened its partnership with OpenAI.
Shares of ServiceNow also climbed after the results. Meanwhile, the iShares Expanded Tech-Software ETF gained further momentum as investors increased exposure to software firms linked to artificial intelligence growth.
Snowflake said AI products generated the strongest sequential product revenue dollar growth in company history. Product revenue reached $1.334 billion during the quarter. The figure rose 34% year over year as more enterprise customers adopted AI-focused services.
The company posted earnings per share of $0.39. Analysts expected earnings of $0.32 per share. The result delivered a 21.88% earnings surprise and continued Snowflake’s trend of outperforming market forecasts.
Non-GAAP operating margin expanded more than 300 basis points to 12%. Snowflake credited operational efficiency and stronger product demand for the improvement.
Snowflake also raised its full-year product revenue guidance to $5.84 billion. The updated forecast represents 31% year-over-year growth. In addition, the company increased its FY2027 non-GAAP operating margin guidance from 12.5% to 13.5%.
The new AWS agreement became one of Snowflake’s largest strategic moves this year. The multiyear partnership aims to accelerate enterprise AI adoption across global markets. Snowflake said the deal will support broader deployment of AI tools through cloud infrastructure.
At the same time, Snowflake expanded its collaboration with OpenAI. The company continued integrating generative AI capabilities into its services as software firms compete for enterprise AI market share.
WedBush Securities analyst Dan Ives maintained an Outperform rating on Snowflake stock following the earnings release. He also raised his price target from $270 to $280 after the quarterly results exceeded expectations.
Ives said the software sector remains in the early stages of AI monetization. He added that investor concerns tied to the 'AI Ghost Trade' continued fading as software companies demonstrated measurable AI-driven growth.
Read More: Snowflake Stock Jumps as AI Demand Lifts Outlook and Amazon Cloud Deal Expands
The broader iShares Expanded Tech-Software ETF has rebounded 24% since mid-April. Investors have increasingly favored software companies viewed as direct beneficiaries of AI productivity gains.
Earlier this year, software stocks faced pressure after concerns emerged that artificial intelligence could disrupt traditional software business models. Since then, companies across the sector have promoted generative AI integration into their platforms.
Despite Snowflake’s strong quarterly performance, the stock slipped 1.32% during after-hours trading. Still, analysts noted that the company’s updated guidance and expanding AI partnerships strengthened confidence around future growth.
Snowflake expects second-quarter product revenue between $1.415 billion and $1.42 billion. The forecast represents about 30% year-over-year growth as enterprise AI demand continues expanding across cloud software markets.
Snowflake stock rose sharply after the company beat earnings estimates, lifted revenue guidance, and expanded its AI partnerships with AWS and OpenAI. The results showed stronger enterprise AI demand and renewed momentum across software stocks as investors continue watching for further growth.
