Cloudflare (NYSE:NET) Releases Q3 2026 Earnings Guidance

Cloudflare (NYSE:NET) updated its third quarter 2026 earnings guidance on Thursday morning. The company provided earnings per share (EPS) guidance of 0.340-0.340 for the period, compared to the consensus earnings per share estimate of 0.260. The company issued revenue guidance of $736.0 million-$737.0 million, compared to the consensus revenue estimate of $722.4 million. Cloudflare also updated its FY 2026 guidance to 1.250-1.260 EPS.

Cloudflare Price Performance

NYSE NET traded up $23.29 during trading hours on Friday, reaching $307.71. 5,126,087 shares of the stock traded hands, compared to its average volume of 4,311,943. The stock has a 50 day simple moving average of $255.83 and a two-hundred day simple moving average of $218.26. Cloudflare has a 1 year low of $158.83 and a 1 year high of $324.73. The company has a debt-to-equity ratio of 1.29, a current ratio of 1.96 and a quick ratio of 1.96. The company has a market cap of $108.77 billion, a price-to-earnings ratio of -1,227.85, a price-to-earnings-growth ratio of 219.10 and a beta of 1.65.

Cloudflare (NYSE:NET) last released its quarterly earnings data on Wednesday, August 5th. The company reported $0.29 EPS for the quarter, topping the consensus estimate of $0.27 by $0.02. The firm had revenue of $696.06 million for the quarter, compared to the consensus estimate of $664.66 million. Cloudflare had a negative return on equity of 5.65% and a negative net margin of 3.72%.The company’s quarterly revenue was up 35.9% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.21 earnings per share. On average, analysts predict that Cloudflare will post 0.03 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on the company. Stifel Nicolaus set a $260.00 price objective on Cloudflare in a research note on Friday, May 8th. BTIG Research lifted their target price on shares of Cloudflare from $314.00 to $382.00 and gave the stock a “buy” rating in a research note on Friday. Truist Financial upped their price target on shares of Cloudflare from $300.00 to $350.00 and gave the company a “buy” rating in a report on Friday. TD Cowen reissued a “buy” rating on shares of Cloudflare in a research report on Friday. Finally, Needham & Company LLC raised their price target on shares of Cloudflare from $280.00 to $380.00 and gave the stock a “buy” rating in a report on Friday. Two investment analysts have rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating, six have given a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $304.30.

Insider Transactions at Cloudflare

In other Cloudflare news, CFO Thomas J. Seifert sold 55,000 shares of the stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $300.30, for a total value of $16,516,500.00. Following the completion of the transaction, the chief financial officer owned 113,790 shares in the company, valued at approximately $34,171,137. This represents a 32.58% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Matthew Prince sold 33,631 shares of the stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $296.10, for a total transaction of $9,958,139.10. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 749,532 shares of company stock valued at $183,882,628. Insiders own 10.66% of the company’s stock.

Key Cloudflare News

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Cloudflare exceeded expectations on both revenue and earnings. Second-quarter revenue rose 35.9% year over year to $696.1 million, above the roughly $664.7 million consensus, while adjusted EPS of $0.29 topped estimates of $0.27. Cloudflare Stock Pops After Strong Q2 Results
• Positive Sentiment: Management raised its outlook above Wall Street forecasts. Full-year 2026 revenue guidance increased to approximately $2.864 billion-$2.870 billion, from $2.805 billion-$2.813 billion previously, while EPS guidance rose to $1.25-$1.26 versus consensus of $0.96. Third-quarter revenue and EPS guidance also exceeded estimates. Cloudflare raises annual outlook
• Positive Sentiment: AI-related demand is strengthening the growth narrative. Cloudflare said Workers, large-customer additions and rising traffic from agentic AI are supporting momentum. New products, including an AEO Visibility Dashboard, Identity-Aware AI Gateway and Cloudflare OS, could expand its enterprise security and AI-platform opportunities. NET Q2 Earnings Call Highlights
• Positive Sentiment: Analysts raised price targets following the results. BTIG, Needham and Oppenheimer lifted their targets to $382, $380 and $380, respectively, and maintained buy or outperform ratings. Truist also raised its target to $350 and retained a buy rating. Cloudflare analyst price-target changes
• Neutral Sentiment: Usage-based revenue can create quarter-to-quarter variability. Management noted that evolving customer usage models may make reported revenue less predictable, even as underlying demand remains strong.
• Negative Sentiment: Valuation and insider selling remain risks. Cloudflare’s roughly $100 billion-plus valuation and still-negative net margin leave limited room for execution missteps. CEO Matthew Prince, CFO Thomas Seifert and director Carl Ledbetter recently sold shares under pre-arranged Rule 10b5-1 plans; these sales are not necessarily bearish but may temper sentiment after the rally.

Hedge Funds Weigh In On Cloudflare

A number of hedge funds have recently bought and sold shares of NET. Sunbelt Securities Inc. raised its stake in shares of Cloudflare by 18.4% in the fourth quarter. Sunbelt Securities Inc. now owns 1,409 shares of the company’s stock worth $278,000 after buying an additional 219 shares during the period. Strive Financial Group LLC bought a new position in shares of Cloudflare in the fourth quarter worth about $50,000. Mercer Global Advisors Inc. ADV raised its stake in Cloudflare by 1.2% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 26,768 shares of the company’s stock valued at $5,277,000 after purchasing an additional 313 shares during the period. Virtue Capital Management LLC lifted its holdings in Cloudflare by 814.5% in the 4th quarter. Virtue Capital Management LLC now owns 7,746 shares of the company’s stock worth $1,518,000 after purchasing an additional 6,899 shares in the last quarter. Finally, Vident Advisory LLC grew its holdings in Cloudflare by 9.0% during the 4th quarter. Vident Advisory LLC now owns 13,869 shares of the company’s stock valued at $2,734,000 after buying an additional 1,143 shares in the last quarter. Hedge funds and other institutional investors own 82.68% of the company’s stock.

About Cloudflare

Cloudflare, Inc is a global web infrastructure and security company that provides a suite of services designed to improve the performance, reliability and security of internet properties. Its core offerings include a content delivery network (CDN), distributed denial-of-service (DDoS) protection, managed DNS, and a web application firewall (WAF). Cloudflare also provides tools for bot management, SSL/TLS, load balancing and rate limiting to help organizations maintain uptime and protect web applications from attack.

In addition to traditional edge and security services, Cloudflare has expanded into edge computing and developer platforms.