Freedom Broker: Partnership with Amazon Supported Snowflake Shares by $6 Billion

Snowflake (SNOW) reported Q1 2027 financial results above market expectations. Freedom Broker raises the target price for Snowflake shares from $250 to $300. Snowflake provides a cloud platform for data storage, processing, and analytics.

For the quarter, Snowflake’s revenue grew 34% YoY to $1.39 billion, beating analyst estimates. Adjusted EPS came in at $0.39, versus market forecasts of around $0.32. Against this backdrop, Freedom Broker analysts maintain a Buy recommendation and raise the target price to $300.

Key growth drivers for Snowflake include accelerated monetisation of AI‑powered products and the largest partnership in Snowflake’s history - a $6 billion agreement with Amazon Web Services (AWS).

Freedom Broker highlights rising demand for the company’s new AI solutions, especially Cortex Code, which not only generates additional revenue but also drives consumption of other Snowflake platform services.

A positive signal for investors was the signing of a strategic $6 billion AWS agreement. Analysts believe the contract guarantees Snowflake access to computing power for AI service development and will strengthen cooperation with one of the cloud market’s largest players.

Another milestone was the acquisition of Natoma, which will help Snowflake enhance control and security for enterprise AI agents.

Despite strong financial results, some metrics fell short of expectations. Notably, the volume of future contractual obligations and client invoices was below analyst forecasts. Freedom Broker explains this by counterparties’ preference for short‑term contracts and more cautious approach to long‑term commitments amid economic uncertainty.

Snowflake’s management has raised its full‑year 2027 guidance, expecting higher revenue and improved operating margins thanks to further AI adoption both for clients and internal business processes.

Not an individual investment recommendation.