Confluent's Q2 revenue up 20%, beats estimates

Confluent

30/07/2025 21:16

Overview

Confluent Q2 2025 revenue rises 20% yr/yr, beating analyst expectations, per LSEG data

Adjusted EPS for Q2 beats consensus, reflecting improved operational efficiency

Confluent Cloud revenue grows 28% yr/yr, highlighting strong platform adoption

Outlook

Confluent expects Q3 subscription revenue of $281-$282 mln

Confluent forecasts FY 2025 subscription revenue of $1.105-$1.11 bln

Company anticipates Q3 non-GAAP operating margin of ~7%

Company projects FY 2025 non-GAAP net income per share of ~$0.36

Result Drivers

CLOUD REVENUE GROWTH - Confluent Cloud revenue increased by 28% yr/yr, driven by strong platform adoption

FLINK ARR - Flink ARR grew approximately 3x over the past two quarters, reinforcing data streaming platform strategy

CUSTOMER EXPANSION - Number of customers with $100,000 or greater in ARR rose 10% yr/yr, indicating growing demand

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$282.30 mln
$278.40 mln (30 Analysts)
Q2 Adjusted EPS
Beat
$0.09
$0.08 (31 Analysts)
Q2 EPS
-$0.24
Q2 Adjusted Operating income
Beat
$17.80 mln
$14.40 mln (30 Analysts)
Q2 Adjusted Operating Margin
6.3%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 26 "strong buy" or "buy", 6 "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 $30.00, about 10.1% above its July 29 closing price of $26.97

The stock recently traded at 64 times the next 12-month earnings vs. a P/E of 60 three months ago

Press Release: ID:nBwblKszna

(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.)