Snowflake Soars on Earnings Beat and Plan to Spend $6 Billion on Amazon Cloud

Why It Matters

The beat and raised outlook reinforce Snowflake’s momentum in enterprise data and AI use cases, while the $6 billion AWS commitment deepens its strategic dependence on Amazon and boosts AWS’s semiconductor business—sharpening competitive dynamics with rivals like Datadog. This combination strengthens Snowflake’s growth trajectory and partner-driven infrastructure positioning.

Summary

Snowflake reported stronger-than-expected Q results, beating EPS by $0.07 and posting revenue of $1.39 billion with product revenue ahead of consensus and an upgraded full-year product revenue outlook. The company said AI remains a major tailwind and disclosed 779 customers spending more than $1 million on a trailing 12-month basis, signaling broadening enterprise adoption. Snowflake also announced it will increase investment in Amazon Web Services to $6 billion, including purchases of AWS’s Graviton custom ARM chips. The stock jumped as much as 24% on the news ahead of further details on the conference call.

Original Description

Amazon said Wednesday that its cloud division has landed a $6 billion spending commitment from Snowflake, which includes the use of the company's custom silicon and chips for artificial intelligence.