Confluent (CFLT) Stock Forecast & Price Target

Confluent Inc has demonstrated significant growth potential, with subscription revenue increasing by 20.5% year-over-year, accounting for approximately 96% of total revenue. The company anticipates a rise in Platform revenue, driven by enhanced pipeline visibility and a notable 40%-plus increase in late-stage pipeline progression in the second quarter. Furthermore, key metrics such as a 21% year-over-year increase in contracted Remaining Performance Obligations (cRPO) and a 31% rise in Remaining Performance Obligations (RPO) indicate strong demand and confidence in Confluent's future growth trajectory.

Confluent Inc. has lowered its revenue outlook for the second half of calendar year 2025, indicating that Month-over-Month Consumption is significantly lower than in prior years, contributing to a reduction in Cloud revenue as a percentage of subscription revenue. Key financial metrics such as Dollar-Based Net Retention Rate (DBNRR) have decreased to 114%, down from 117% in the previous quarter, while Gross Revenue Retention (GRR) has also dipped marginally below 90%. The company faces risks of multiple compression and negative investor sentiment due to slower growth expectations in its core event streaming market and challenges in product and go-to-market execution.