Snowflake expands AWS partnership, acquires Natoma, delivers strong Q1

Snowflake said it will spend $6 billion on Amazon Web Services' AI offerings and Graviton chips, announced that it will acquire Natoma and reported first quarter results.

The barrage of news landed a few days ahead of its flagship Summit conference.

Here's a breakdown of the news.

AWS expanded partnership

Snowflake said it will expand its ongoing partnership with AWS. The two companies, which are already intertwined as Snowflake has sold more than $7 billion on AWS Marketplace, rolled out a multi-year partnership that includes joint go-to-market efforts and infrastructure commitments.

Under the deal:

• The two companies will expand efforts to migrate workloads and move enterprises to a combined AI stack.
• Snowflake will buy $6 billion in Graviton compute and AI services over five years.
• AWS and Snowflake will offer deeper product integrations across genAI and agentic AI.
• Go-to-market efforts will revolve around joint investments in customer success programs, migrations and industry offerings.

Sridhar Ramaswamy, CEO of Snowflake, said the AWS partnership will enable enterprises to bring AI to governed data. AWS CEO Matt Garman said the Snowflake partnership will help joint customers that need to scale data warehousing and AI workloads.

Natoma acquisition

Snowflake said it will acquire Natoma, which provides an enterprise Model Context Protocol platform for AI agents.

According to Snowflake, Natoma will give the company the ability to integrate governance, identity and MCP tool access in a native package. Ramaswamy said: "Agents don’t just need access to data. They need the right context, permissions and policy guardrails to operate safely inside the enterprise. Snowflake has long served as the governed data foundation for enterprises, and with Natoma’s expertise in identity governance and privileged access management, we can extend that trust layer to AI-driven actions and workflows."

The plan for Snowflake is to securely connect Cortex Agents, Snowflake Intelligence, Cortex Code and other AI platforms. Natoma's technology will be integrated into Snowflake's AI Data Cloud.

Snowflake's Q1 tops estimates

Snowflake's first quarter non-GAAP earnings were 39 cents a share, 7 cents ahead of Wall Street estimates, and revenue checked in at $1.39 billion, up 33% from a year ago.

The net loss for the first quarter was $295.6 million, or 86 cents a share.

The company raised its outlook for the second quarter and projected product revenue of $1.41 billion to $1.42 billion, up 30% from a year ago. For fiscal 2027, Snowflake said product revenue will be $5.84 billion, up 31% and ahead of its previous guidance of $5.66 billion.

Key figures for the first quarter include:

• Snowflake reported 779 customers with trailing 12-month product revenue of more than $1 million.
• Remaining performance obligations in the quarter were $9.21 billion, up 38%.
• More than 13,600 accounts are using Snowflake AI.