Shares of Snowflake are surging after the company beat Wall Street’s projections in its latest earnings report, delivering on its AI thesis, with Q1 revenue up 33%.
It also announced an acquisition of an AI agent platform.
Snowflake stock soared 30% in after-hours trading. It that move were to hold on Thursday, it would more than erase Snowflake’s nearly 20% decline so far this year.
Here are the numbers:
Revenue of $1.39 billion in the first quarter (compared to analyst estimates of $1.32 billion).
Adjusted earnings per share of $0.39 (estimate: $0.32). Full-year product revenue guidance for 2027 of $5.84 billion, up from previous guidance of $5.66 billion (estimate: $5.67 billion).
Snowflake is a cloud-based database company — essentially allowing businesses to mine their data for insights, charging for compute and storage along the way.
The company's stock has fallen this year as the company manages competition from hyperscalers like Amazon Web Services as well as the high cost of AI-related build out as they double-down on AI-tools.
Last year, Snowflake — which now calls itself "the AI Data Cloud company" — announced $200 million deal to power its agentic AI with Anthropic's Claude.
Alongside its Q1 earnings, Snowflake also announced it has signed an agreement to purchase Natoma, a platform for securely integrating AI agents with data, like Snowflake's. Terms of the deal weren’t disclosed.
“AI agents will only become enterprise-ready if organizations can govern how they operate across systems, applications and tools,” said Pratyus Patnaik, Co-Founder and CEO of Natoma. “Together with Snowflake, we’re building the governance and connectivity layer that enables enterprises to securely operationalize AI at scale.”