Confluent Stock Skyrockets As IBM Seals $11 Billion Buyout
International Business Machines Corp. (NYSE:IBM) agreed to acquire Confluent, Inc. (NASDAQ:CFLT) for $31 per share, giving the data streaming pioneer an enterprise value of $11 billion.
Confluent stock surged after the deal.
The deal brings Confluent’s real-time, open-source data streaming platform into IBM’s portfolio, enabling enterprises to connect, process, and govern reliable data and events in real time, a foundation for deploying AI at scale.
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Together, IBM and Confluent will integrate applications, analytics, data systems, and AI agents to enhance hybrid cloud intelligence and operational resilience.
Growing Demand For Real-Time Data
The partnership addresses the growing need for connected, trusted data, as IDC forecasts over one billion new applications emerging by 2028 that require real-time data access to drive productivity and AI capabilities.
Confluent’s platform prepares data for AI, keeping it clean, connected, and ready for real-time decision-making while eliminating silos.
Over the past four years, Confluent’s total addressable market doubled from $50 billion to $100 billion.
Portfolio Expansion And Product Synergies
Integrating Confluent with IBM’s AI infrastructure, automation, and data offerings positions the combined company to capture the growing demand for enterprise AI solutions.
The acquisition complements IBM’s hybrid cloud and AI strategy, expanding its Data and Automation portfolio, and builds on IBM’s 25-year history of open-source innovation through prior acquisitions like Red Hat and HashiCorp.
The deal also promises product synergies, operational efficiencies, and revenue growth, leveraging IBM’s global reach and ecosystem partnerships across Anthropic, AWS, GCP, Microsoft, Snowflake, and more.
IBM and Confluent boards have approved the transaction, which is expected to close by mid-2026, pending Confluent shareholder and regulatory approvals.
IBM held $14.9 billion in cash and equivalents as of September 30, 2025.
The stock has gained over 40% year-to-date due to strong momentum from AI and hybrid cloud growth.
IBM exceeded third-quarter expectations as strong results in its Infrastructure and Automation divisions offset slower performance in Red Hat and other software segments.
Analyst Commentary
Bank of America Securities analyst Wamsi Mohan noted a clean beat on revenue and earnings per share.
Mohan highlighted that robust Automation and Infrastructure results countered weaker Red Hat (Hybrid Cloud) and Transaction Processing software outcomes.
Even with the software slowdown, IBM raised its full-year 2025 guidance, projecting over 5% revenue growth, higher profit margins, and roughly $14 billion in free cash flow.
Mohan also noted strong Consulting division performance, driven by AI-related business, and emphasized IBM’s ongoing shift toward higher-margin software and services while maintaining solid cash generation.
IBM Price Action: IBM shares were up 1.49% at $312.52 at the time of publication on Monday, according to Benzinga Pro data.
CFLT Price Action: Confluent shares were up 28.69% at $29.85 at the time of publication on Monday.
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