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Snowflake’s $6 Billion AWS Deal: Is The AI Data Cloud Entering A New Phase?

Snowflake Inc. reported a first quarter fiscal 2027 marked by accelerating product revenue growth and increasing integration of AI-driven capabilities within its platform. Product revenue reached $1.334 billion, growing 34% year-over-year, up from 30% in the prior quarter and 26% a year ago. This growth reflects both momentum in Snowflake’s core data platform business and rapid adoption of AI products like Snowflake Intelligence and Cortex Code (CoCo). The net revenue retention rate improved to 126%, indicative of strong customer expansion. Operational discipline contributed to non-GAAP operating margin improvement, expanding by over 300 basis points year-over-year to 12%. The company also raised its full-year product revenue growth guidance from 27% to 31%, reflecting confidence in sustained demand driven by AI innovation. Snowflake highlighted the accelerating adoption and expanding use cases of agentic AI products.