Snowflake shares jump 37% after strong AI-driven Q1 earnings beat and raised revenue forecast.

Snowflake reported a strong Q1 with product revenue up 34% year-on-year to $1.334 billion, beating analyst expectations and its own guidance. The company’s operating margin expanded significantly, and earnings per share surpassed estimates by over 20%. Growth was driven by increased adoption of Snowflake’s AI products, with a notable rise in accounts using AI services. Snowflake also secured a $6 billion deal with Amazon Web Services and plans to acquire Natoma to deepen its AI enterprise capabilities. The company raised its full-year revenue guidance, reflecting confidence in continued AI-driven growth, though high valuations remain a concern for investors. This performance aligns with a broader trend of enterprise software firms benefiting from AI adoption at scale.