Confluent's Q3 sales surpass expectations on increased cloud revenue

Confluent

27/10/2025 20:14

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

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(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.)