Investing.com -- Snowflake Inc. (NYSE: SNOW) reported first quarter results that exceeded analyst expectations, with shares surging 30% following the announcement of a major AWS collaboration and raised full-year guidance.

The AI Data Cloud company posted adjusted earnings per share of $0.39, beating the analyst consensus of $0.32 by $0.07. Revenue reached $1.39 billion, surpassing the $1.32 billion estimate and representing 33% YoY growth.

Product revenue of $1.33 billion grew 34% YoY, marking what the company called its strongest sequential dollar growth in history.

The company also announced a new multi-year agreement with AWS designed to accelerate enterprise AI adoption globally. Snowflake committed to spending $6 billion on AWS infrastructure over the next five years, marking its largest infrastructure commitment to date and underscoring rising demand for AI and data workloads. The partnership will deepen integrations between Snowflake’s AI Data Cloud and AWS services, allowing enterprises to build and deploy AI applications directly on governed enterprise data without moving sensitive information between systems.

"Snowflake delivered a milestone quarter, with product revenue of $1.33 billion, up 34% year-over-year, marking the strongest sequential dollar growth in our history," said Sridhar Ramaswamy, CEO of Snowflake. "AI continues to be a powerful tailwind for Snowflake, and Q1 marks a clear inflection point in that journey."

The company now has 779 customers with trailing 12-month product revenue exceeding $1 million, up 29% YoY, with 46 customers crossing that threshold in the first quarter compared to 26 a year ago. Net revenue retention rate stood at 126%, while remaining performance obligations reached $9.21 billion, up 38% YoY.

For the second quarter, Snowflake expects product revenue of $1.415 billion to $1.420 billion, representing 30% YoY growth. The midpoint of $1.4175 billion would exceed typical sequential patterns. The company raised its full-year fiscal 2027 product revenue guidance to $5.84 billion, representing 31% YoY growth, up from previous guidance of $5.66 billion.