Observed Signal · May 28, 2026 · Earnings Report · Source: CNBC Technology · Impact: 4/5 · Sentiment: Positive
Snowflake Jumps 35% on AI Momentum
Snowflake shares surged about 35% on May 28, 2026 after the company beat fiscal first-quarter adjusted earnings and revenue expectations, raised guidance, and announced expanded AI initiatives. The company said it will spend $6 billion on compute from Amazon and is expanding use of Amazon’s in-house chips for AI workloads. Finance chief Brian Robins said tools such as Cortex Code and Snowflake Intelligence are creating a “step function change” in AI-driven revenue potential and internal productivity. Snowflake added 616 net new customers in the quarter, has 779 customers spending more than $1 million on a trailing 12-month basis, provided fiscal Q2 margin and product revenue guidance, and disclosed intent to acquire AI startup Natoma. The results helped lift software peers and eased concerns about AI reducing SaaS demand.
Snowflake's strong quarter, upgraded guidance, large $6B Amazon compute commitment and AI product monetization signal an inflection for cloud data warehouses and enterprise AI consumption, with material implications for software, cloud compute demand and AI-driven monetization models.
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Key Takeaways & Evidence Grounding
- Snowflake shares rose about 35% on May 28, 2026, heading for the company's best day ever.
- Snowflake plans to spend $6 billion on compute from Amazon and expand use of Amazon's in-house chips for AI.
- Snowflake beat fiscal Q1 adjusted earnings-per-share and revenue expectations and boosted guidance.
- Finance chief Brian Robins said Cortex Code and Snowflake Intelligence are driving a “step function change” in AI revenue potential and productivity.
- Snowflake added 616 net new customers in the quarter, has 779 customers spending more than $1 million on a trailing 12-month basis, and announced intent to acquire AI startup Natoma.
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Snowflake jumps 22% on strong results and AI coding momentum
Snowflake shares surged 22% in extended trading after the data analytics company delivered strong fiscal Q2 results that beat expectations. Adjusted earnings per share hit 62 cents versus 45 cents expected, while revenue climbed 35% year over year to $1.55 billion, above the $1.48 billion consensus. The net loss narrowed to $191.7 million from $297.9 million a year earlier. The company highlighted momentum for its CoCo AI coding agent, which now counts 9,100 accounts, up more than 2,000 in the quarter. For Q3, product revenue guidance of $1.59 billion exceeded estimates, and management raised its full-year product revenue forecast to $6.07 billion while expanding its adjusted operating margin outlook to 14.5%. Following the report, Morgan Stanley and Bank of America raised their price targets to $470, implying roughly 54% upside, and most of the 52 covering analysts maintain buy ratings. Shares had already gained 39% in 2026 through Wednesday's close.
Snowflake Jumps 35% After Earnings; $6B AWS Deal
Snowflake reported stronger-than-expected fiscal first-quarter results and announced a five-year, $6 billion commitment to purchase Amazon Web Services products and services, including AWS’s Arm-based Graviton CPUs and cloud GPUs for AI workloads. The company reported $0.39 adjusted EPS on $1.39 billion revenue (33% year-over-year), beating LSEG analyst estimates of $0.32 and $1.32 billion. Snowflake guided to a 12.5% fiscal second-quarter adjusted operating margin on $1.415–$1.420 billion in product revenue, above StreetAccount expectations. The stock rose as much as 35% in after-hours trading. Snowflake also said it is acquiring AI startup Natoma for an undisclosed sum. The AWS commitment underscores growing hyperscaler demand for AI infrastructure and reinforces Snowflake’s ongoing reliance on Amazon’s cloud ecosystem.
Snowflake Soars; HSBC Upgrades Stock
Snowflake shares jumped more than 36% in their biggest single-day gain after the company announced a $6 billion compute commitment with Amazon and reported stronger-than-expected fiscal first-quarter results driven by demand for its AI tools such as Cortex Code (CoCo). HSBC upgraded Snowflake from hold to buy and raised its price target to $289 from $176, citing CoCo’s monetization potential and growing account adoption. Despite the surge, Snowflake is up about 9% year-to-date and remains a consensus buy among most analysts covering the stock.
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