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Confluent Rallies as Q3 Beat and Guidance Raise Spur Analyst Upgrades

Analysts say a durable valuation reset hinges on several quarters of consistent execution.

Overview

  • Q3 adjusted EPS came in at $0.13 on revenue of $298.537 million, topping consensus estimates of $0.10 and $292.871 million.
  • Full-year 2025 adjusted EPS guidance was lifted to $0.39–$0.40 from $0.36.
  • Management highlighted 24% year-over-year Confluent Cloud growth and a 43% increase in remaining performance obligations, citing accelerating DSP and Flink adoption.
  • Shares rose roughly 8%–11% after the report as multiple firms raised price targets, including DA Davidson to $29 with a Buy rating.
  • Leaders did not address earlier reports of potential sale interest on the earnings call, while several analysts welcomed Flink momentum but cautioned that sustained gains require steady delivery.