DA Davidson has downgraded Confluent Inc (CFLT) to Neutral from Buy, reflecting increased caution regarding the company's outlook. The revision, effective December 8, 2025, may be indicative of concerns related to competitive pressures, market conditions, or execution risks that could impact performance.
Confluent, headquartered in Mountain View, California, is a technology firm focused on creating a data infrastructure platform that emphasises data in motion. With a market capitalisation of $10.4 billion and a trailing twelve-month EPS of -0.90, the company currently employs 3,060 full-time staff. It went public on June 24, 2021, and offers a cloud-native solution that supports diverse deployment models across multi-cloud and hybrid infrastructures.
Analyst ratings, such as those provided by DA Davidson, represent professional assessments based on research and financial models. While these evaluations can offer valuable insights, they are predicated on assumptions and estimates that may not always materialise. Investment decisions should consider various factors, including company fundamentals, competitive positioning, and industry trends.
Confluent's upcoming earnings report is scheduled for July 28, 2026, with estimates of $0.12 EPS and $335.5 million in revenue. Recent earnings performance has shown a positive trend, with Q3 2025 EPS reported at $0.13, exceeding estimates by 31.3%. Analyst consensus currently stands at 8 Strong Buy, 20 Buy, 10 Hold, 1 Sell, and 0 Strong Sell, suggesting a general preference for the stock despite the recent downgrades.
This update provides insight into the shifting perceptions of analysts regarding Confluent as it navigates a competitive landscape.