Overview
Confluent Q3 revenue grows 19% yr/yr, beating analyst expectations
Adjusted EPS for Q3 beats consensus, reflecting improved profitability
Confluent Cloud revenue increases 24% yr/yr, showing strong customer commitment
Outlook
Confluent expects Q4 2025 subscription revenue of $295.5-$296.5 mln
Company anticipates FY 2025 subscription revenue of $1,113.5-$1,114.5 mln
Confluent projects FY 2025 non-GAAP EPS of $0.39-$0.40
Result Drivers
CLOUD REVENUE GROWTH - Confluent Cloud revenue increased 24% yr/yr, reflecting strong customer commitment and consumption growth
PLATFORM ADOPTION - Accelerating adoption of DSP components, particularly Flink, contributed to growth
DIVERSIFIED STRATEGY - Strong performance attributed to diversified growth strategy and margin expansion
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $298.50 mln | $292.87 mln (31 Analysts) |
Q3 Adjusted EPS | Beat | $0.13 | $0.09 (31 Analysts) |
Q3 EPS | -$0.19 | ||
Q3 Adjusted Operating income | Beat | $29.10 mln | $20.71 mln (31 Analysts) |
Q3 Adjusted Operating Margin | 9.70% |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 23 "strong buy" or "buy", 9 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for Confluent Inc is $25.00, about 8.8% above its October 24 closing price of $22.80
The stock recently traded at 51 times the next 12-month earnings vs. a P/E of 59 three months ago
Press Release: ID:nBw8Rpq1Sa
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)