AI Demand Drives Up Performance and Guidance as Executives Sell Shares Worth Billions

Snowflake Inc. (SNOW) reported first-quarter results for fiscal 2027 with product revenue of about $1.3 billion and total revenue near $1.4 billion—growth in the mid-30% range. The company disclosed a 126% net revenue retention rate and approximately $9.2 billion in remaining performance obligations. Citing strong demand for its AI-powered offerings, Snowflake raised its full-year guidance for both product revenue and non-GAAP operating margin. Although the quarter remained unprofitable on a GAAP basis, the company delivered positive non-GAAP operating income and adjusted free cash flow. Management reiterated its AI-focused growth strategy, highlighting expanded strategic partnerships with AWS, OpenAI and SAP and the signing of a definitive agreement to acquire AI-agent platform provider Natoma.

On May 26 and 29, CEO Frank Slootman exercised stock options at an $8.88 strike price and immediately sold an equivalent number of shares in a cashless exercise, monetizing roughly $120 million (₩150 – 200 billion). He still directly owns over 500,000 shares and retains substantial economic interests through various family trusts.

On the same day, Snowflake announced a new five-year, approximately $6 billion infrastructure commitment with AWS to scale AI workloads and finalized its Natoma acquisition deal. In early June, the company broadened collaborations with Thomson Reuters, Sanofi and Anthropic, while introducing new AI products—such as the coding agent “CoCo” and the knowledge-worker agent “CoWork”—and enhanced governance features, expanding its enterprise AI and agent portfolio.

Headquartered in the U.S., Snowflake is a cloud data-warehouse and AI-data-cloud provider that has attracted global enterprises and public-sector customers with its consumption-based pricing model. It is now positioning itself as a platform that goes beyond data storage and analytics to include MCP-based AI-agent governance and development tools, emerging as a key player in the enterprise AI infrastructure market alongside major tech and cloud providers.