Snowflake stock soared 32% in extended trading on Thursday after the software company announced a $6 billion multiyear deal with Amazon Web Services (AMZN) and raised its full-year sales outlook.
Under its agreement with Amazon, Snowflake will pay $6 billion over the next five years for access to Amazon’s Graviton central processing units, or CPUs, in its data centers.
Snowflake stock also soared on a stronger-than-expected outlook amid strong demand for AI and data services. The company forecast product revenue growth of 31% to $5.84 billion for the year, up from its previous guidance of $5.66 billion.
“AI continues to be a powerful tailwind for Snowflake, and Q1 marks a clear inflection point in that journey,” Snowflake CEO Sridhar Ramaswamy said. “With Cortex Code and Snowflake Intelligence, we are extending from the trusted foundation for enterprise data and context to become the control plane for the Agentic Enterprise. We are seeing strong momentum from both…
