Snowflake, a company specializing in AI Data Cloud, has announced two major strategic moves that strengthen its position as a leading platform for enterprise agents. The company has expanded its multi-year strategic agreement with Amazon Web Services (AWS), including a committed investment of $6 billion.
Additionally, Snowflake has announced its intention to acquire Natoma, an enterprise platform based on Model Context Protocol (MCP) focused on the development and management of AI agents.
Both announcements coincide with the release of first quarter results for fiscal year 2027, during which the company achieved its best ever performance in product revenue.
The partnership with AWS marks a further step toward an agentized enterprise
The expansion of Snowflake’s collaboration with AWS involves a commitment to invest $6 billion in AWS infrastructure over several years, the largest investment to date, reflecting the growing enterprise demand for AI and data workloads running on AWS. The agreement includes more advanced product integrations in generative AI and agent-based AI, expanded marketing through AWS Marketplace, and joint investments in customer success programs, workload migrations, and sector-specific strategic solutions designed to help companies move from AI experimentation to large-scale production results. The goal is for organizations to build and deploy AI faster and more securely.
Since Snowflake became available on AWS Marketplace, customers have embraced it as the fastest way to acquire and deploy Snowflake’s AI and data capabilities, surpassing $7 billion in total sales and reaching $2 billion in sales during the 2025 calendar year, more than doubling transaction growth year-over-year.
Natoma provides secure connectivity for the enterprise agentized ecosystem
Snowflake has announced the signing of a definitive agreement regarding its intention to acquire Natoma, an Enterprise Model Context Protocol (MCP) platform for AI agents. This acquisition will enable Snowflake to establish a native, integrated governance and identity layer for AI agents and access to MCP tools, facilitating secure connection and management of how AI systems interact with applications, databases, APIs, and company tools. By extending governance to AI-powered workflows, Snowflake helps companies securely manage not only their data but also the actions performed by AI agents within various business processes.
With this acquisition, Snowflake customers will be able to securely connect Cortex Agents, Snowflake Intelligence, Cortex Code, and other AI platforms to enterprise systems across SaaS applications, cloud environments, VPCs, and on-premise infrastructure—all through a verified MCP server library. Natoma provides the control and governance framework for these connections and helps organizations manage how AI agents discover systems, access them, and act—assuring confidence, visibility, identity-based authorization, policies, and comprehensive, integrated auditing.
Product revenue achieved a 34% year-over-year growth
The first quarter results for fiscal year 2027, ending April 30, 2026, reflect product revenues of $1.33 billion, a 34% increase compared to the same period last year. The net revenue retention rate stood at 126%, and Snowflake added 616 net new customers during the quarter—a 38% increase year-over-year.
Sridhar Ramaswamy, Snowflake CEO:
“Snowflake has closed a historic quarter. Product revenues of $1.33 billion, up 34% year-over-year, mark our largest sequential dollar growth ever,” said Sridhar Ramaswamy, Snowflake’s CEO. “AI remains a powerful catalyst for Snowflake, and this first quarter represents a clear inflection point on that path. With Cortex Code and Snowflake Intelligence, we are expanding from the trusted foundation of data and business context to become the control plane of the Enterprise Agentecosystem. We’re seeing strong momentum driven by both the acceleration of our AI-powered core platform and the increasing adoption of our own AI products, positioning Snowflake to lead in this new era.”
“AI continues to accelerate our core data platform business as more customers transition to Snowflake at an ever-growing pace,” said Brian Robins, Snowflake CFO. “We now have 779 customers spending more than $1 million in the last 12 months. Of those, 46 exceeded that threshold in the first quarter, up from 26 a year ago. With this strong momentum across both our core platform and AI businesses, we are raising our full-year product revenue guidance.”