May 27 (Reuters) - Snowflake raised its annual product revenue forecast on Wednesday, signaling growing demand for AI-driven workloads and cloud migrations, sending shares of the cloud-based data analytics platform surging 29% in extended trading.
The company also signed a five-year deal worth $6 billion with Amazon Web Services tied to AWS' Graviton processors and AI infrastructure, as their partnership deepens around enterprise AI.
The latest deal will include deeper product integrations around generative
and agentic AI, expanded go-to-market efforts through AWS Marketplace and workload migrations aimed at helping businesses move from experimenting with AI projects to using them routinely.
Snowflake enables businesses to store, analyze and share large volumes of data across applications, and has seen strong adoption of its AI tools such as Cortex Code and Snowpark.
The company raised its product revenue forecast for fiscal 2027 to $5.84 billion, from $5.66 billion projected earlier.
"We now have 779 customers spending more than $1 million on a trailing 12-month basis," finance chief Brian Robins said.
Snowflake's growth was fueled by surging enterprise demand for its core data warehousing products, with migrations from legacy systems and increased use of machine learning tools adding momentum.
It expects second-quarter product revenue to be between $1.415 billion and $1.420 billion, compared with analysts' average estimate of $1.37 billion, according to data compiled by LSEG.
Total revenue for the first quarter came in at $1.39 billion, above the estimate of $1.32 billion.
(Reporting by Harshita Mary Varghese in Bengaluru; Editing by Shilpi Majumdar)
