Snowflake Shares Surge 37% After Earnings Beat and $6 Billion AWS Commitment

Snowflake's stock soared nearly 37% in extended trading Wednesday, putting the cloud-based data platform on track for its best single-day gain ever, after the company reported stronger-than-expected first-quarter results and disclosed a $6 billion spending commitment to Amazon Web Services over five years.

The AWS deal includes the purchase of Amazon's custom silicon and chips for artificial intelligence, underscoring Snowflake's effort to deepen its cloud infrastructure ties as demand for AI-capable data platforms intensifies.

For the first quarter, Snowflake posted adjusted earnings of 39 cents per share on revenue of $1.39 billion. Analysts polled by LSEG had anticipated 32 cents per share and $1.32 billion in revenue, meaning the company exceeded expectations on both lines.

Separately, Snowflake said it is acquiring AI startup Natoma, adding to the flurry of announcements accompanying its earnings release.

The results and AWS commitment lifted shares of several Snowflake peers in premarket trading. DataDog rose 6%, while ServiceNow climbed more than 5.5%, reflecting how investor sentiment around one major cloud software name can ripple through the sector.

Snowflake's surge arrived alongside a busy earnings session for the technology and retail sectors. Salesforce beat Wall Street's first-quarter estimates on both the top and bottom lines, but its guidance for current-quarter revenue of between $11.27 billion and $11.35 billion fell just short of analyst expectations of $11.36 billion, according to LSEG. Salesforce shares slipped roughly 1% in premarket trading as a result, even as the company raised its full-year earnings guidance range.

Best Buy posted an earnings and revenue beat for the first quarter, with comparable sales up 2% year-over-year. Gaming, computing, mobile phones, and services led that growth. Shares rose nearly 8%, and the company reaffirmed its full-year guidance.

Dollar Tree surged more than 11% after reporting adjusted earnings of $1.74 per share, clearing the FactSet analyst consensus of $1.53 per share. The discount retailer also announced a partnership with DoorDash to offer on-demand delivery from its stores.

Kohl's climbed nearly 11% after reporting a narrower-than-expected first-quarter loss of 13 cents per share, compared to analyst expectations for a loss of 19 cents per share, according to FactSet.

On the downside, Marvell Technology slipped almost 3% despite an upbeat outlook. The semiconductor company guided for adjusted earnings of 93 cents per share on revenue of $2.70 billion for the current quarter, ahead of the Street's estimates of 90 cents and $2.60 billion, per LSEG — though the stock's decline suggested investors may have expected more.

For Snowflake, the combination of a landmark infrastructure commitment and a clear earnings beat signals the company's intent to position itself at the center of enterprise AI workloads. Whether the AWS deal translates into durable margin expansion will be a key metric for analysts to track in coming quarters.

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