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Snowflake’s AI-Driven Quarter Spurs Rally as Salesforce’s Guidance Keeps Investors Cautious

Investor confidence rose after Snowflake showed consumption-led revenue gains and pledged a $6 billion AWS infrastructure commitment that signals growing enterprise demand for AI workloads.

Overview

  • Snowflake, which reported results on Wednesday, delivered a blowout fiscal Q1 with $1.39 billion in revenue, raised full-year product revenue guidance to $5.84 billion and said product revenue for the quarter was $1.33 billion.
  • The company announced a five-year, $6 billion infrastructure collaboration with Amazon Web Services and agreed to acquire Natoma to speed adoption of AI agents that connect models to governed enterprise data.
  • Markets reacted strongly with Snowflake shares jumping roughly 30–36% in after-hours and premarket trading as management pointed to rising large-account adoption and higher remaining performance obligations.
  • Salesforce also reported fast growth in its Agentforce AI platform, saying Agentforce ARR has topped $1.2 billion, but its softer forward guidance and weaker backlog metrics left investors cautious and kept its stock largely flat.
  • The quarter shifted the SaaS debate by showing that consumption-based data platforms can benefit from AI workloads and that the key signals going forward will be guidance, enterprise adoption among million-dollar customers, and infrastructure commitments that lock in cloud spend.