Snowflake reported Q1 FY2027 earnings last week
Product revenue hit $1.334B, growth accelerated to 34% YoY. The company raised its full-year outlook from 27% to 31%.
The same day, Snowflake signed a five-year, $6B infrastructure deal with AWS - more than 2X its prior contract from three years ago.
Interestingly, Snowflake exceeded $2B in AWS Marketplace sales in calendar 2025, also 2X+ YoY. Lifetime sales crossed $7B.
Against FY2026 total revenue of $4.68B, marketplace now accounts for ~45% of Snowflake’s revenue.
A few years ago, that share would have sparked debate over whether relying on one partner was wise. Today it shows the scale and the central place that cloud marketplaces have reached in enterprise software distribution.
Cloud partnership GTM is now priced into guidance raise
CFO Brian Robins confirmed the AWS deal is fully factored into Snowflake’s raised FY2027 outlook. AWS committed to “expanded go-to-market investment and collaboration” — co-sell, joint customer programs, and workload migration support.
Robins also noted the contract helps offset lower gross margins on AI products like Cortex Code by reducing infrastructure costs. That’s how Snowflake holds 75% product gross margin guidance despite surging AI revenue. The AWS deal fuels growth and protects margins at the same time.
Discovery, not just procurement
Snowflake calls AWS Marketplace “the fastest path to procure and deploy” its AI and data capabilities. The expanded agreement is designed to help customers ‘discover, procure, and deploy AI and data solutions through AWS Marketplace’ and includes joint investments in customer success, workload migrations, and strategic industry solutions.
AWS field teams actively help Snowflake win enterprise accounts. Customers buying and deploying AI products — Cortex AI, Snowflake Intelligence, Cortex Code — are doing it through marketplace, against cloud commits.
CEO Sridhar Ramaswamy:
“With AWS, we are making it easier for enterprises to bring AI directly to governed data.”
New benchmark — with a challenger
Snowflake’s $7B lifetime and $2B+ annual pace sets the bar for data and AI companies. But Salesforce — a line-of-business software company — is already at ~$3B annually and crossed $5B+ total on AWS.
The race at the top keeps accelerating. Stay tuned as we track the $1B+ Marketplace Club.
3 lessons for alliance leaders:
When ~45% of a $5B+ company’s revenue flows through one marketplace, it becomes core commercial infrastructure
Partners pricing co-sell into growth guidance is the clearest signal cloud GTM is now an operating model
$2B annual is the new marketplace benchmark for top ISVs
How much of your revenue runs through cloud marketplaces?
Latest Insights & Analysis
We help our clients to define customer-centric strategies that stimulate innovation and create value
