Snowflake Inc. (NYSE:SNOW) shares are trading higher Thursday after the company reported better-than-expected first-quarter earnings. Also, the company announced it signed a multi-year strategic collaboration agreement with Amazon Web Services to accelerate enterprise agentic AI adoption.
- Snowflake stock is showing upward bias. What’s the outlook for SNOW shares?
Q1 Highlights
Snowflake reported adjusted earnings per share of 39 cents, beating the consensus estimate of 32 cents. In addition, it reported revenue of $1.39 billion, beating the consensus estimate of $1.32 billion and representing a 33% year-over-year growth.
The company said product revenue totaled $1.33 billion in the quarter, up 34% year-over-year. Snowflake also reported a net revenue retention rate of 126%.
Snowflake said it now has 779 customers with trailing 12-month product revenue greater than $1 million, representing 29% year-over-year growth. The company also reported 813 Forbes Global 2000 customers and remaining performance obligations of $9.21 billion, up 38% year-over-year.
Snowflake added 616 net new customers in the quarter, including 13 new Forbes Global 2000 customers.
"AI continues to be a powerful tailwind for Snowflake," said CEO Sridhar Ramaswamy.
Ramaswamy said the company is seeing strong momentum from AI-driven acceleration of its core platform and growing adoption of its first-party AI products.
CFO Brian Robins said the company raised its full-year product revenue guidance due to momentum across both its core platform and AI business.
AWS Collaboration
Snowflake also announced a multi-year strategic collaboration agreement with Amazon Web Services focused on accelerating enterprise agentic AI adoption. As part of the agreement, Snowflake committed $6 billion in Graviton compute and AI spend on AWS over five years.
The company said the collaboration expands integrations across generative AI and agentic AI products while increasing joint go-to-market efforts through AWS Marketplace.
Snowflake said lifetime sales through AWS Marketplace have surpassed $7 billion and exceeded $2 billion in calendar year 2025.
Analyst Consensus & Recent Actions
The stock carries a Buy rating with an average price target of $242.48. Recent analyst moves include:
- Stifel: Buy (Raises Target to $300.00) (May 28)
- Morgan Stanley: Overweight (Raises Target to $300.00) (May 28)
- Goldman Sachs: Buy (Raises Target to $278.00) (May 28)
Technical Setup Remains Bullish
Snowflake is in a strong uptrend on intermediate timeframes, trading 56.1% above its 20-day SMA ($155.30) and 58.4% above its 50-day SMA ($153.04). It's also 19.7% above the 200-day SMA ($202.49), which keeps the longer-term bias constructive even as the stock digests gains.
Momentum is best framed through MACD: it's above its signal line and the histogram is positive, which points to improving upside pressure versus the prior downswing. In plain terms, when MACD is above the signal line, it suggests buyers are gaining control and downside momentum is fading.
One caution flag is the bigger-picture trend history: the 50-day SMA remains below the 200-day SMA, keeping the February death cross in place even after the rally. That "old" bearish crossover matters less when price is reclaiming and holding above the 200-day, but it can still make overhead supply more stubborn if the stock pulls back from recent highs.
- Key Resistance: $255.50 — a nearby pivot area where rallies can stall after an extended run above the 20-day and 50-day averages
- Key Support: $214.00 — a nearby floor to watch if the stock mean-reverts toward the 200-day SMA zone
Snowflake Shares Advance
SNOW Price Action: At the time of publication, Snowflake shares are trading 36.31% higher at $238.90, according to data from Benzinga Pro.
Image via Shutterstock
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