Shares in the AI data cloud provider Snowflake Inc (NYSE: SNOW) are surging this morning in premarket trading after the company reported better-than-expected results for its Q1 2027.
Here’s what you need to know about those results, and how SNOW stock is reacting.
What’s happened?
Yesterday, after markets closed, Snowflake reported the results of its first fiscal quarter for 2027, which ended on April 30. Those results were some of the best the company has reported. Specifically, they included:
- Total revenue of $1.39 billion, up 33% year-over year
- Product revenue of $1.33 billion, up 34% YOY
- Earnings per share (EPS): 39 cents
To put those numbers into greater perspective, they handily beat what most analysts were expecting. As CNBC notes, LSEG analysts had expected Snowflake to post $1.32 billion in revenue for the quarter and an EPS of 32 cents.
And, as could be expected for a company that sells software as a service (SaaS) solutions on its AI Data Cloud for the artificial intelligence era that we’re all living in, AI was a big driver of the company’s revenue growth.
“AI continues to be a powerful tailwind for Snowflake, and Q1 marks a clear inflection point in that journey,” CEO Sridhar Ramaswamy said of the Q1 results, adding, “We are seeing strong momentum from both AI-driven acceleration of our core platform and growing adoption of our first-party AI products, positioning Snowflake to lead in this new era.”
Snowflake offers AI dataset SaaS solutions that run on top of various cloud storage platforms like Amazon Web Services, Google Cloud Platform, and Microsoft Azure, allowing companies to analyze massive datasets and run agent AI on them.
The death of the SaaSpocalypse?
Since last year, many industry watchers have warned of the “SaaSpocalypse,” a term used to describe the fear that generative and agentic AI capabilities will bring an end to the legacy software as a service (SaaS) industry, which has powered the enterprise space for decades now.
Fears of the SaaSpocalypse have caused major SaaS companies like Salesforce Inc (NYSE: CRM) to see their stock prices decline significantly over the past 12 months.
Yet Snowflake’s most recent results suggest that fears of the impending SaaSpocalypse may be exaggerated—or at least show that some SaaS companies can thrive in the AI era.
Indeed, investors today just aren’t cheering Snowflake’s Q1 results; they are cheering Snowflake’s Q2 forecast, which suggests that companies are actively seeking out SaaS solutions built for the AI era.
In its latest quarterly report, Snowflake said it expects its Q2 product revenue to be between $1.415 billion and $1.42 billion, exceeding its stellar Q1 product revenue and representing a 30% year-over-year growth versus its previous Q2.
As noted by CNBC, analysts had expected Snowflake to issue Q2 product revenue guidance of just $1.37 billion.
Snowflake also announced that it was expanding its collaboration with Amazon by committing to spend an additional $6 billion on its Graviton AI chips and Amazon Web Services (AWS) over the next five years.
A SaaS company generally doesn’t commit to spending that type of money if it thinks its SaaS business may face apocalyptic conditions in the years ahead.
SNOW stock jumps 38%
Snowflake’s earnings beat and better-than-expected Q2 guidance seem to have reinvigorated interest in the company’s stock.
As of this writing, SNOW shares are currently up more than 38% to $242 per share in premarket trading.
That’s a high the company’s share price has not seen since December. Since the beginning of the year, SNOW shares, like those of many SaaS companies, have taken a beating, partly due to SaaSpocalypse fears.
Before today’s premarket SNOW price jump, SNOW shares closed yesterday at $175.26, which represented a decline of over 20% year-to-date. And based on yesterday’s closing price, SNOW shares were down more than 15% over the past 12 months.
But with today’s current 38% premarket rise, SNOW shares are now firmly in the green for 2026. Investors will be hoping they stay that way—and that Snowflake’s Q1 results mean fears of the impending SaaSpocalypse have been greatly overblown.