EARNINGS DELIVERED — SNOW — Thursday, May 28, 2026
Yesterday we said the bar was already at 30% revenue growth and a $5.84B FY guide — Snowflake had to clear both. It did better.
The print
- Product revenue: $1.33 billion, +34% YoY, accelerating from 30% growth in the prior quarter.
- Full-year product revenue guidance: raised to $5.84 billion (+31% YoY).
- Fiscal Q2 guidance: $1.415B–$1.42B (+30% YoY).
- Net revenue retention: 126% — expansion from existing customers is the engine, not new logos.
- Non-GAAP operating margin: +300 bps YoY to 12%.
- Customer count: 13,912 (+616 net new, +38% YoY in net adds).
The bigger story — the $6B AWS deal
Simultaneously with earnings, Snowflake announced a five-year, $6 billion commitment to AWS, built around Amazon’s Graviton CPUs for the constant background workloads that AI agents require (not training compute). For context:
- Snowflake’s prior five-year AWS commitment was $2.5B (signed in 2023). Before that, $1.2B (signed at IPO in 2020).
- The new $6B deal is roughly equal to Snowflake’s entire historical AWS Marketplace revenue since 2012 (~$7B).
- Snowflake’s customers doubled their AWS spending in 2025, hitting $2B — the deal is partly committing to spending that’s already trajectory.
Stock up 37% in after-hours trading once the market processed both the print and the deal.
The Play
The reaction’s already cooked into the open. Chasing SNOW at +37% gives back a lot of edge to whoever bought at the close — the post-earnings move is the rip, the next 5-10 days are the digestion.
What’s NOT priced in: the $6B AWS deal locks Snowflake into Amazon’s AI infrastructure stack for five years, which means Graviton-CPU pricing leverage flows to NVDA/AMD-alternative narratives, not Snowflake itself. The trade now isn’t chasing SNOW. It’s looking at which cloud-margin shorts just got compressed (any company arguing it’s an AWS Graviton alternative just lost 5 years of pipeline at SNOW).
Market Tea covered SNOW yesterday as an earnings preview. Today’s the print + AWS-deal follow-up. Tomorrow’s the analyst-reaction wave.