Early Snowflake Investor Nails a 50% Rebound That May Only Be Warming Up

Austin Smith

Fri, July 3, 2026 astatine 11:33 AM CDT 3 min read

Snowflake has softly go 1 of the loudest AI-software rebounds of the year. Shares changed hands astatine $260 connected Wednesday, up ~54% from the $169 adjacent connected February 25, erstwhile the Q4 people landed into a tense SaaS tape. The betterment accelerated aft May, erstwhile absorption delivered a 4th that changed the speech from "consumption headwinds" to "AI inflection." Eric Bleeker of 24/7 Wall St had already added Snowflake (NYSE:SNOW) to his AI portfolio earlier that reset.

The 4th that flipped the publication

Q1 FY27, reported May 27, was the benignant of people bulls had been waiting 2 years for. Revenue roseate 33.5% to $1.39 billion, and non-GAAP EPS of $0.39 cleared the $0.32 statement for a 4th consecutive beat. The fig that mattered most, though, was remaining show obligations of $9.21 billion, up 38%. In a depletion business, RPO maturation outrunning gross maturation means customers are pre-committing to workloads they person not yet run. That is the awesome the marketplace kept demanding.

CEO Sridhar Ramaswamy called it "the strongest sequential dollar maturation successful our history" and pointed astatine the AI stack arsenic the reason. More than 13,600 accounts are present utilizing Snowflake AI features, Cortex Code sits wrong 7,100+ accounts, and Snowflake Intelligence usage much than doubled 4th implicit quarter. Net gross retention held astatine 126%, meaning each dollar of past year's lawsuit is present spending $1.26.

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The AWS handshake and the AI ecosystem commercialized

The different header was a $6 cardinal multi-year collaboration with Amazon (NASDAQ:AMZN) covering AWS infrastructure, co-selling, and endeavor AI deployments. Snowflake runs connected AWS, Azure, and Google Cloud, but Amazon is the anchor tenant, and a committedness this size tells you AWS is consenting to money Snowflake's maturation to support AI-native information workloads wrong its walls alternatively than losing them to Microsoft (NASDAQ:MSFT) Fabric. Snowflake besides deepened its OpenAI concern and closed a woody to bargain Natoma, an endeavor Model Context Protocol level for AI agents. Read together, these are the pieces of a level trying to become, arsenic Ramaswamy enactment it, "the power level for the Agentic Enterprise."

What has to support moving

Management raised full-year FY27 merchandise gross guidance to $5.84 billion, oregon 31% growth, and lifted the non-GAAP operating borderline people to 13.5% from 12.5%. The counterweight is real: Snowflake inactive ran a $326 cardinal GAAP operating nonaccomplishment successful the quarter, and depletion gross tin wobble if customers throttle usage.