Snowflake benefits from data, artificial intelligence, and its agreement with AWS
Artificial intelligence (AI) is increasingly changing the way companies work with data. In this environment, the importance of platforms that can not only store and process data, but also use it effectively to create modern AI solutions, is growing. This is precisely why Snowflake is attracting the attention of investors, who are watching whether its technological ambitions can also translate into stronger financial results.
Revenue and profit above estimates
Snowflake attracted attention with its first fiscal quarter report, which exceeded analysts’ expectations. The company achieved adjusted earnings of 39 cents per share and revenue of 1.39 billion USD, representing year-on-year growth of 33%. The market had expected earnings of 32 cents per share and revenue of 1.32 billion USD. The positive reception of the results was also supported by a stronger outlook. In the second fiscal quarter, Snowflake expects product revenue in the range of 1.415 to 1.420 billion USD and an adjusted operating margin of 12.5%, again exceeding market estimates. Investor sentiment was also strengthened by a five-year agreement with Amazon Web Services (AWS) worth 6 billion USD. [1]
A stronger position in the AWS cloud
The agreement with Amazon Web Services fits into Snowflake’s broader direction, as it is increasingly positioning itself as a data platform capable of benefiting from the growing adoption of artificial intelligence in companies. The five-year cooperation is intended to provide the company with access to Graviton chips at a time when computing capacity for AI solutions is in high demand. At the same time, it is expected to deepen the integration of Snowflake tools for storing, processing, and analyzing data within the AWS environment, which is used by most of its customers. The company’s own technologies, such as Cortex Code and Snowpark, also build on this trend. They help companies create generative applications and deploy machine learning models over their own data.
Goldman Sachs raised the target price
Goldman Sachs also reacted to the favorable results by raising the target price for Snowflake shares from 216 to 278 USD and maintaining its “buy” recommendation. The main reason was the outperformance of expectations in the first fiscal quarter, when product revenue exceeded the consensus by 5% and the EBIT margin was better by 250 basis points. The forecast for fiscal year 2027, in which analysts expect earnings of 1.94 USD per share, is also positive. Goldman Sachs identifies the migration of customers from older data platforms to more modern solutions and the development of the Cortex Code tool as particularly important growth factors. [1]
Growth potential is still awaiting confirmation
From an investment perspective, Snowflake remains a story with significant potential, but the market will continue to monitor whether it can turn its technological ambitions into more stable financial performance. Current results, a stronger outlook, cooperation with AWS, and the growing use of artificial intelligence have improved sentiment around the company, but the longer-term performance of its shares shows investor caution. Over the past five years, as of 28 May 2026, Snowflake shares fell by 26.37%, reflecting previous doubts about the pace of growth and high valuation.* The coming periods will therefore show whether the company can transform growing demand for data and AI solutions into higher revenue, better profitability, and stronger investor confidence.
Five-year performance of Snowflake Inc shares [USD]*
(Source: CNBC)
[1] Forward-looking statements represent assumptions and current expectations that may not be accurate, or are based on the current economic environment, which may change. These statements do not guarantee future performance. Forward-looking statements by their nature involve risk and uncertainty because they relate to future events and circumstances that cannot be predicted, and actual developments and results may differ materially from the results expressed or implied in any forward-looking statements.
* Data relating to the past are not a guarantee of future returns.
Warning! This marketing material is not and must not be understood as investment advice. Data relating to the past are not a guarantee of future returns. Investing in a foreign currency may affect returns as a result of fluctuations. All securities transactions may result in both profits and losses. Forward-looking statements represent assumptions and current expectations that may not be accurate, or are based on the current economic environment, which may change. ETFobchodník is a trading brand of CAPITAL MARKETS, o.c.p., a.s., regulated by the National Bank of Slovakia
Sources:
https://www.cnbc.com/2026/05/27/snowflake-amazon-graviton-cloud-chips.html
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