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/Mis Actual Consensu

s s

Estimate

Q2 Beat $282.30 $278.40

Revenue mln mln (30

Analysts

)

Q2 Beat $0.09 $0.08

Adjusted (31

EPS Analysts

)

Q2 EPS -$0.24

Q2 Beat $17.80 $14.40

Adjusted mln mln (30

Operatin Analysts

g income )

Q2 6.3%

Adjusted

Operatin

g Margin

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 ( CFLT ) 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:

(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.)