Confluent's Q4 performance exceeds expectations, with revenue up 21%

LootboxPhobia · 2026-02-11T22:47:09+00:00

Confluent, based in Mountain View, California, released an Q4 earnings report that exceeded expectations, with revenue up 21% year-over-year, and strong performance in both subscription revenue and cloud services. The company reported earnings of $0.12 per share and $27.6 million in non-GAAP operating income, indicating continued growth. Confluent is advancing its acquisition of IBM, which is expected to be completed in 2026.

LootboxPhobia

2026-02-11 22:47:09

Abstract generation in progress

Mountain View, California - Data streaming pioneer Confluent, Inc. (NASDAQ:CFLT) announced its Q4 earnings that exceeded analyst expectations, with revenue up 21% year-over-year, and the company continued to maintain a strong adoption rate of cloud services. Following the earnings release, the company’s stock dipped slightly by 0.16%.

In the fourth quarter, Confluent reported adjusted earnings per share of $0.12, surpassing analyst estimates of $0.10. Revenue reached $314.8 million, above the consensus estimate of $308.06 million, representing a 21% increase from the same period last year. Subscription revenue, which constitutes the core of the company’s business, grew 20% year-over-year to $301.6 million, while Confluent Cloud revenue increased 23% to $169 million.

“Confluent delivered a strong performance in the fourth quarter, capping off a successful year, with Confluent Cloud growing 23% year-over-year,” said Jay Kreps, Co-Founder and CEO of Confluent. “Our advancements in AI products and ongoing innovation in our core offerings further solidify our leadership in this category this quarter.”

The company reported non-GAAP operating income of $27.6 million for the quarter, up from $13.6 million in the same period last year, with non-GAAP operating profit margin increasing from 5.2% to 8.8%. Confluent also noted that it currently has 1,521 customers with annual recurring revenue of $100,000 or more, a 10% increase year-over-year.

For the full fiscal year 2025, Confluent reported subscription revenue of $1.12 billion, up 21%, and Confluent Cloud revenue grew 27% to $624 million.

Amid these results, Confluent is advancing its acquisition deal with IBM, announced in December 2025, in which IBM will acquire the company for $31.00 per share in cash, valuing the enterprise at $11 billion. The transaction is expected to close in mid-2026, pending approval from shareholders and regulators.

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