10:39 AM EST, 11/21/2025 (MT Newswires) -- Snowflake (SNOW) looks set to surpass Wall Street's third-quarter revenue estimates as the growing popularity of artificial intelligence fuels demand for data warehouses, Oppenheimer said in a Friday note.

The cloud-based data warehousing company is scheduled to release its quarterly results on Dec. 3.

Snowflake's year-over-year product revenue growth could approach 29% to 30%, ahead of the consensus estimate of nearly 26%, which is in line with the company's guidance. The company posted a 32% jump in product revenue for the second quarter.

"Our checks suggest Snowflake's market momentum is good across regions and verticals, and that it's seeing strong product attach rates and incremental gains in AI and (machine learning) workloads versus tough competition," Oppenheimer analysts including Ittai Kidron wrote. "We expect new products to again outperform management's expectations."

The company will likely set out a conservative fourth-quarter guidance, the analyst said.

Oppenheimer's checks showed that Snowflake operates in an increasingly competitive environment, especially in head-to-head engagements versus Databricks.

"While the general pattern continues to favor Snowflake for data warehouse workloads and Databricks for AI and ML workloads, each is making inroads into the other's territory with examples of wins for both companies," Kidron said. "That said, we believe Snowflake is seeing success getting into AI-driven workloads."

Oppenheimer has an outperform rating and a price target of $295 on Snowflake's stock.

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