Snowflake Stock Soars As AI Deals Ignite New Rally

Snowflake Inc. surges as investors cheer a major AI-driven cloud partnership, with stocks have been trading up by 36.68 percent.

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Key Takeaways

Q1 FY27 product revenue jumped to $1.33B, up 34% year over year, with total revenue at $1.39B and raised full-year product revenue and margin guidance despite ongoing GAAP losses.
For fiscal Q1, SNOW beat expectations with non-GAAP EPS of $0.39 versus $0.32 and revenue of $1.39B versus $1.32B, powered by AI products like Cortex Code and Snowflake Intelligence.
The company signed its largest-ever multi-year collaboration with AWS, committing $6B of AI-focused infrastructure spend to deepen product integration and joint go-to-market.
Management plans to acquire Natoma to add a governance and identity layer for AI agents, connecting Snowflake Intelligence and Cortex tools into core enterprise apps and data sources.
After the Q1 beat and guidance hike, SNOW surged about 30% as traders reacted to the AWS expansion, Natoma deal, and an AI-driven growth outlook backed by broadly positive Street ratings.

Live Update At 10:03:24 EDT: On Thursday, May 28, 2026 Snowflake Inc. stock [NYSE: SNOW] is trending up by 36.68%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

SNOW has looked like a different animal on the chart since late May 2026. The stock closed at $150.76 on 2026/05/14 and ground higher into earnings, then exploded from $175.26 on 2026/05/27 to $239.47 on 2026/05/28. That’s roughly a 37% two-day surge, confirming the post-earnings squeeze the news headlines flagged.

Intraday, SNOW held up impressively. On the latest session, it opened near $237, dipped briefly to about $229.49, then pushed back toward the highs around $239.75 into the close. That kind of tight intraday range after a massive gap tells traders real buyers are supporting the move, not just algos chasing headlines.

More Breaking News

Fundamentally, Snowflake reported trailing 12‑month revenue of about $4.68B, growing more than 30% annually. Gross margin near 67.2% shows a high-value software model, but profitability ratios are still negative, with profit margins around ‑28% and ROE deeply in the red. SNOW is a classic growth-over-earnings name, trading at roughly 13.1x sales and about 20x free cash flow, with an enterprise value near $59.46B. For active traders, that mix—big growth, rich multiples, and new momentum—sets the stage for sharp trend moves in both directions.

Why Traders Are Watching SNOW After This AI Breakout

Snowflake just delivered the kind of quarter that resets expectations. Q1 FY27 product revenue hit $1.33B, up 34% year over year, with total revenue at $1.39B, up 33%. Management didn’t just beat; they raised Q2 and full‑year product revenue and margin guidance. For traders, that combination—beat plus guide-up—is one of the strongest catalysts you’ll see in earnings season.

SNOW’s non‑GAAP EPS came in at $0.39 versus $0.32 expected, and revenue topped the $1.32B consensus. Management pointed straight at AI demand as the driver, calling out traction for Cortex Code and Snowflake Intelligence. That is exactly the narrative the market wants right now: a data platform turning into a core AI infrastructure play.

Then came the kicker. Snowflake announced its largest-ever multi‑year strategic collaboration agreement with Amazon Web Services. The company committed $6B over five years for Graviton compute and AI infrastructure, tightening its alignment with AWS. For traders, this tells you Snowflake is not trying to fight the hyperscalers; it is hitching itself to them and aiming to capture more AI workloads through tighter integration and AWS Marketplace distribution.

On top of that, Snowflake plans to acquire Natoma, an enterprise Model Context Protocol platform. This pushes SNOW up the stack—from just storing and managing data to governing and orchestrating AI agents that act across Slack, email, CRM, Jira, databases, and internal APIs. Deeper in the workflow means stickier usage and potentially higher spend per customer, which helps explain the 126% net revenue retention and the $9.21B in remaining performance obligations the company reported.

For momentum traders, the message is simple: the market just re‑priced SNOW as an AI‑levered growth story again.

Conclusion

After the Q1 FY27 print, SNOW’s roughly 29%–30% after‑hours and next‑day jump was not a random spike. Earnings beat on revenue, EPS, and margins. Guidance went higher for Q2 and the full year. AI demand is accelerating, and Snowflake secured a $6B AWS collaboration plus the Natoma acquisition to deepen its AI capabilities and governance story. That is a full-stack catalyst package.

Wall Street’s reaction lines up with the price action. Wedbush reiterated an Outperform with a $270 target, calling Snowflake a prime data infrastructure winner in enterprise AI. Bank of America nudged its target up to $205 with a Buy, while RBC and Citi trimmed targets to $220 and $260 but still kept Outperform/Buy ratings, citing sector multiple pressure rather than a broken story. Traders need to understand that: the fundamentals just improved, but expectations and valuation are now higher as well.

Technically, SNOW is extended after the gap, yet the tight intraday action shows real accumulation. For short-term traders, that often means focusing on clear support levels, honoring stop losses, and avoiding the FOMO chase. As Tim Sykes likes to say, “The market rewards prepared traders who cut losses quickly and only trade the best setups.” And as Tim Bohen, lead trainer with StocksToTrade says, “Time and experience have taught me that missed opportunities are part of the game. There’s always another setup around the corner.” SNOW’s new AI‑driven leg higher is one of those setups to study closely—for education, planning, and disciplined trading, not for blind guessing.

This is stock news, not investment advice. StocksToTrade News delivers real-time stock market updates tailored to highlight the key catalysts driving short-term price movements. Our coverage is designed for active traders and investors who thrive in fast-moving markets, with a focus on volatile sectors like penny stocks, AI stocks, Robinhood stocks and other momentum plays. From earnings reports and FDA approvals to mergers, new contracts, and unusual trading volume, we break down the events that can spark significant price action.

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