Snowflake's Q1 beats expectations, shares jump 37% on strong AI-driven growth and raised guidance

Snowflake Inc reported a strong fiscal Q1 with product revenue up 34% year-on-year to $1.334 billion, surpassing analyst expectations. The company's non-GAAP operating margin expanded to 12%, and earnings per share beat estimates by over 20%. Growth was driven by increased adoption of Snowflake's AI products, with a significant rise in accounts using AI services. Snowflake also announced a $6 billion deal with Amazon Web Services and plans to acquire Natoma, signaling a deeper push into AI enterprise solutions. The company raised its full-year revenue guidance, reflecting confidence in continued AI-driven growth. This performance aligns with a broader trend of enterprise software firms benefiting from AI adoption, though high valuations remain a concern for investors.