Is Snowflake (SNOW) a Buy Ahead of Q3 Earnings Amid AI-Driven Growth and Technical Support Levels?

Snowflake Inc. (SNOW) has emerged as a pivotal player in the AI-powered cloud data sector, with its recent financial performance and strategic innovations fueling optimism among investors. As the company approaches its fiscal Q3 2026 earnings release on December 3, 2025, the question of whether SNOW is a compelling buy hinges on two critical factors: its AI-driven growth trajectory and the technical support levels that define strategic entry points.

Earnings Momentum and Guidance: A Foundation for Optimism

Snowflake's Q3 2025 results underscored its resilience, , exceeding expectations. This momentum has translated into robust guidance for Q3 2026, , . Analysts have taken note, , both signaling confidence in Snowflake's ability to outperform. These projections are underpinned by strong demand in the Cloud Data Warehouse (CDW) and Data Engineering segments, which remain central to Snowflake's revenue engine.

AI-Driven Growth: A Catalyst for Long-Term Value

Snowflake's AI initiatives are increasingly central to its growth narrative. The adoption of has surged, . At Summit 2025, the company unveiled agentic AI tools like Snowflake Intelligence and Cortex AISQL, which democratize AI workflows for business users and developers. These innovations are not just incremental-they are reshaping Snowflake's value proposition. For instance, partnerships with SAP and Deloitte enable customers to integrate heterogeneous data sources for real-time analytics, positioning Snowflake as a bridge between legacy systems and modern cloud environments.

Quantitatively, AI is already driving tangible results: . While AI-driven revenue contribution remains unspecified, .

Technical Support Levels: Strategic Entry Points

From a technical perspective, SNOW has shown resilience near key support levels. , . . , .

However, risks persist. A shift toward open data formats like Apache Iceberg could pressure storage revenue, . These factors necessitate a cautious approach, .

Balancing Risks and Rewards

Despite its strengths, Snowflake faces headwinds from hyperscalers like AWS and Microsoft, which are aggressively expanding their AI offerings. Additionally, macroeconomic pressures-such as tighter IT budgets-could dampen customer spending. Yet, Snowflake's cloud-native architecture and focus on interoperability (e.g., Snowflake Openflow and Apache Iceberg support) provide a competitive edge in an increasingly fragmented market.

Conclusion: A Buy for the Long-Term Vision

For investors with a medium- to long-term horizon, Snowflake presents a compelling case. Its AI-driven product roadmap, coupled with strong earnings momentum and favorable technical levels, positions SNOW as a buy ahead of Q3 earnings. While short-term volatility is inevitable, the company's strategic investments in agentic AI and open data ecosystems align with the broader industry's shift toward cloud-native intelligence.