Citizens reiterates Market Outperform rating on Confluent stock after Q3 beat

Published 28/10/2025, 10:04
Citizens reiterates Market Outperform rating on Confluent stock after Q3 beat

Investing.com - Citizens reiterated a Market Outperform rating and $36.00 price target on Confluent Inc (NASDAQ:CFLT) following the company’s third-quarter 2025 financial results. According to InvestingPro data, this target represents a potential 63% upside from the current price of $22.08.

Confluent reported non-GAAP earnings per share of $0.13, exceeding consensus estimates of $0.10, and total revenue of $299 million, surpassing analyst expectations of $292.9 million. The company maintains a strong financial position with a current ratio of 3.98, indicating robust liquidity.

The data streaming platform provider posted subscription revenue of approximately $286 million, up 19% year-over-year but down from 21% growth in the previous quarter. Confluent Cloud revenue reached $161 million, representing 24% year-over-year growth, a decrease from 28% in the prior quarter.

Confluent’s non-GAAP operating margin improved to 9.7%, up from 6.3% in the previous quarter and above the consensus estimate of 7.1%.

The company’s stock rose 9% in after-hours trading following the earnings release, partially offsetting its 21% year-to-date decline, which contrasts with the Nasdaq’s 20% gain and the Russell 3000’s 15% increase during the same period.

In other recent news, Confluent Inc. reported its third-quarter earnings for 2025, surpassing Wall Street expectations. The company achieved an earnings per share (EPS) of $0.13, exceeding the forecasted $0.10. Additionally, Confluent’s revenue surpassed projections, reaching $298.5 million compared to the anticipated $292.56 million. Despite these positive earnings and revenue results, the stock experienced a decline in after-hours trading, indicating a complex market sentiment. Analysts have not provided any further upgrades or downgrades following these results. These developments highlight the company’s performance amidst varying market reactions. Investors may find these earnings and revenue figures significant when assessing Confluent’s recent financial performance.

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