Confluent (CFLT) Stock Forecast & Price Target

Confluent Inc reported a 20.5% year-over-year increase in Subscription Revenue, which accounted for approximately 96% of Total Revenue, reflecting strong demand for its data streaming platform. The company anticipates a higher growth rate in Platform revenue, supported by increased pipeline visibility in the second half of 2025, while early results for the second quarter show a notable 40%-plus increase in late-stage pipeline progression. Additionally, significant metrics such as Flink approaching $10 million in ARR and a 21% year-over-year growth in current Remaining Performance Obligations (cRPO) bolster Confluent's positive outlook.

Confluent Inc. has recently reduced its Cloud Revenue outlook for the second half of CY25, citing expectations of notably lower Month-over-Month Consumption compared to prior periods, with trends observed in 2QCY25 being flat to slightly down from 1QCY25. The company has also experienced a decline in critical financial metrics, including a decrease in Dollar-Based Net Retention Rate (DBNRR) to 114% from 117% and a drop in Gross Retention Rate (GRR) to below 90%, highlighting pressures on customer growth and revenue stability. Additionally, investor sentiment could be negatively impacted by concerns over future growth in the core event streaming market, alongside potential multiple compression if quarterly results or guidance consistently fall short of expectations.