Snowflake (SNOW) is set to release third-quarter fiscal 2026 results on Dec. 3. The Zacks Consensus Estimate for earnings is 31 cents per share, indicating 55% year-over-year growth. Revenue estimates are at $1.18 billion, up 25.39% from the previous year. SNOW has a history of beating earnings estimates. Factors to Note for SNOW’s Q3 include an expanding clientele and strong revenue projections.

Snowflake’s performance is expected to reflect an expanding clientele and strong revenue growth. The company reported a net revenue retention rate of 125% in the last quarter and added 533 net new customers. Snowflake expects product revenues between $1.125 billion and $1.13 billion for Q3, indicating 25-26% growth. The stock has outperformed its sector and industry.

Snowflake is benefiting from its strong portfolio, with over 250 new capabilities launched in the first half of fiscal 2026. Investments in AI and ML technology have driven customer engagement, with over 6,100 customers using Snowflake’s AI and ML weekly. The company’s rich partner base, including collaborations with major players like SAP and Microsoft, has expanded its reach.

Snowflake’s long-term prospects rely on its innovative portfolio and strong partner base. However, stiff competition and elevated infrastructure spending pose challenges. The stock is currently overvalued, trading at a premium compared to industry peers. Investors should wait for a more favorable entry point before accumulating the stock. Snowflake carries a Zacks Rank #3 (Hold).

Read more at Nasdaq: Should You Buy, Sell, or Hold SNOW Stock Before Q3 Earnings Release?