Will New AI and Multicloud Innovations Change Confluent's (CFLT) Long-Term Investment Narrative?

• In late October 2025, Confluent unveiled a suite of major innovations including Confluent Intelligence, Real-Time Context Engine, Streaming Agents, Confluent Private Cloud, and expanded Tableflow integrations across multicloud environments.
• This wave of product development uniquely positions Confluent to address enterprise demand for secure, real-time data streaming and context-driven artificial intelligence solutions.
• Now, we’ll explore how Confluent’s enterprise AI and multicloud advancements could reshape its long-term investment narrative.

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Confluent Investment Narrative Recap

To be a shareholder in Confluent, you need to believe in the growing importance of real-time AI workloads and multicloud data streaming as foundational trends in enterprise IT. The recent rollout of Confluent Intelligence and related products directly speaks to this vision, but it may not immediately resolve the most pressing short-term catalyst, accelerating cloud subscription revenue growth amid elevated competition and customer optimization. Meanwhile, the company's core risk of losing large AI-native customers to self-managed or on-premise platforms remains material and unchanged by these launches.

Among the latest announcements, Confluent Private Cloud stands out for its relevance to the risk of customer migration. By enabling highly regulated enterprises to deploy advanced streaming infrastructure securely on their own premises, Confluent may address some reasons driving customers to abandon cloud-based solutions for self-managed environments. This could limit churn but does not eliminate the risk of clients seeking open-source or cheaper alternatives.

Yet, despite these upgrades, investors should also be aware that customer cost optimization and on-premise migrations continue to present difficult questions about...

Read the full narrative on Confluent (it's free!)

Confluent's narrative projects $1.7 billion in revenue and $220.6 million in earnings by 2028. This requires 16.5% yearly revenue growth and a $532.3 million increase in earnings from -$311.7 million currently.

Uncover how Confluent's forecasts yield a $27.87 fair value, a 18% upside to its current price.

Exploring Other Perspectives

Fair value estimates from three Simply Wall St Community members range from US$27.87 to US$33.70 per share. With product adoption challenges and revenue growth pressures in mind, you can compare a range of thoughtful opinions on Confluent's future.

Explore 3 other fair value estimates on Confluent - why the stock might be worth as much as 43% more than the current price!

Build Your Own Confluent Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Confluent research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Confluent research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Confluent's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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