Snowflake reported fiscal Q1 2027 revenue of $1.39 billion, up 33% year over year, and the stock rose more than 36% the next session for its best day on record, per CNBC. Product revenue of $1.33 billion grew 34%, an acceleration from 30% the prior quarter. The company also signed a five-year, $6 billion AWS contract and raised full-year product revenue guidance to $5.84 billion, according to the earnings report.
The number that explains the move is that 34% product-revenue growth rate, up from 30%. Reacceleration is rare at Snowflake's scale, and it is what justified a 36% one-day repricing on a company that was already large. Net revenue retention came in at 126%, meaning existing customers are spending more, and non-GAAP operating margin expanded more than 300 basis points to 12%. Growth and margin moved the same direction in the same quarter, which is the combination the market pays up for.
The $6 billion AWS commitment cuts both ways. It more than doubles the prior deal and locks in lower egress and compute costs that help Snowflake's gross margin over five years. It also deepens a dependency on a partner that competes with Snowflake through Redshift. For operators evaluating the stack, the read is that Snowflake bought cost certainty and capacity, and paid for it in concentration risk.
Bottom Line
A reacceleration to 34% product growth with expanding margins is the rare beat that earns its pop. Watch whether the AWS deal's cost savings actually show up in next quarter's gross margin.