Shares of Snowflake surged 35% after the company exceeded Wall Street earnings expectations, raised guidance, and announced plans to spend $6 billion on compute infrastructure from Amazon.
The rally put Snowflake on track for its best trading day ever, while also lifting broader software and AI-related stocks across the market.
Snowflake executives said growing demand for AI-powered products such as Cortex Code and Snowflake Intelligence is driving a major expansion in the company’s revenue opportunities. Finance chief Brian Robins described AI as creating a “step function change” in the company’s growth potential.
The company also highlighted increasing use of Amazon’s in-house AI chips as part of its infrastructure strategy.
For the fiscal first quarter, Snowflake topped analyst expectations on both revenue and adjusted earnings while projecting stronger-than-expected product revenue and operating margins for the next quarter.
Investors viewed the results as a sign that enterprise software companies can benefit from the AI boom rather than being displaced by it, easing fears around a broader “SaaSpocalypse” scenario where AI tools reduce demand for traditional software services.
The earnings report boosted several major enterprise software stocks. ServiceNow rose roughly 5%, while Oracle and Palantir Technologies also posted gains following Snowflake’s results.
Snowflake additionally announced plans to acquire AI startup Natoma, further expanding its AI capabilities, though financial terms were not disclosed.
The company reported strong customer growth, including a sharp increase in large enterprise accounts spending more than $1 million annually. Analysts said the results suggest Snowflake’s AI monetization strategy may be reaching a major inflection point as enterprises increasingly invest in AI infrastructure, developer tools, and cloud-based automation platforms.
