Investors in Confluent (CFLT) are giving a lukewarm reception to the data-streaming software maker’s latest product launches aimed at improving AI use in businesses.
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On Wednesday, Confluent introduced Confluent Intelligence, a service to help businesses scale their AI workloads, and Real-Time Context Engine, a fully managed service to improve AI context training. It also rolled out enhancements to its product, Streaming Agents, enabling businesses to create production-ready AI agents with just a few lines of code.
Lastly, it rolled out Confluent Private Cloud, a platform for organizations to manage their data streaming processes on private infrastructure, thereby overcoming the challenge of scaling data streaming on Apache Kafka, the popular open-source data streaming platform established by Confluent co-founders while they worked at LinkedIn.
CFLT stock traded marginally higher on Wednesday afternoon, rising by 0.69% to $23.91 as of 2:04 p.m. EDT.
What’s Driving Confluent’s AI Push?
Confluent, which is reportedly mulling over buyout offers from private equity firms and top technology companies, builds software that enables businesses to process and manage their data in real time. This is important for training and running AI models.
With Confluent Intelligence, the California-based company seeks to help companies deliver context — the ability to make inferences and decisions — directly into their AI applications based on new data or events, rather than waiting for scheduled updates.
In parallel, the Real-Time Context Engine helps businesses avoid stale, fragmented data by unifying data processing and providing uninterrupted streams of data for more intelligent, faster AI decisions.
Meanwhile, the unenthusiastic reception comes despite Confluent reporting strong Q3 2025 results on Monday, with growth in subscription revenue and a 43% expansion in remaining performance obligations — that is, revenue to be unlocked in the future from unfulfilled contracts.
The company even added more large customers — those each generating over $100,000 in yearly recurring revenue — during the quarter than in any other over the past two years. Confluent reportedly lost a major customer earlier in July.
Is Confluent a Good Stock to Buy?
On Wall Street, Confluent’s shares currently have a Moderate Buy consensus rating. This is based on 19 Buys, seven Holds, and one Sell assigned by 27 analysts over the past three months.
However, the average CFLT price target of $27.38 suggests about 14% upside from its current price.
