Cursor hits $2 billion in annual revenue as run rate doubles
Cursor surpassed $2 billion in annualized revenue, according to a Bloomberg source. The startup’s revenue run rate doubled over the past three months. The disclosure counters recent skepticism regarding user defections to competing tools like Anthropic’s Claude Code.
This revenue milestone underscores the rapid scaling of AI-assisted software development tools. It highlights a shift in Cursor’s business model toward enterprise contracts over individual developers.
Corporate buyers now account for approximately 60% of Cursor’s revenue, the source said. While some individual developers have switched to the more competitively priced Claude Code, attrition has been lower among higher-spending corporate customers. OpenAI’s Codex, as well as startups Replit, Cognition, and Lovable, also compete in this market.
Investors valued Cursor at $29 billion across three rounds in 12 months. That’s looking pretty suspect right now.
Cursor went from $1M to $1B ARR faster than any SaaS company in history. The trip back down could be just as fast.
An entire engineering team at Valon just canceled… https://t.co/WGsindLFEK
— Aakash Gupta (@aakashgupta) February 27, 2026
Cursor was last valued at $29.3 billion in November following a $2.3 billion funding round. The round was co-led by Accel and Coatue. Founded in 2022, Cursor did not immediately respond to a request for comment.