Cloudflare (NYSE:NET) Issues FY 2026 Earnings Guidance

Key Points

• FY‑2026 guidance: Cloudflare issued EPS guidance of 1.190–1.200, well above the consensus of 0.880, and set revenue guidance of $2.8 billion (in line with consensus); Q2 FY‑2026 EPS guidance is 0.270.
• Stock reaction and valuation: Shares jumped about 3.4% to $257.05 on heavy volume, giving the company a market cap of roughly $90.5 billion and leaving the stock near its 52‑week high of $260.00.
• Insider selling: Executives including CEO Matthew Prince and Michelle Zatlyn have materially reduced holdings, with insiders selling 638,766 shares (~$125.8M) in the past 90 days; insiders now own 10.89% of the stock.

Cloudflare (NYSE:NET - Get Free Report) issued an update on its FY 2026 earnings guidance on Thursday morning. The company provided EPS guidance of 1.190-1.200 for the period, compared to the consensus EPS estimate of 0.880. The company issued revenue guidance of $2.8 billion-$2.8 billion, compared to the consensus revenue estimate of $2.8 billion. Cloudflare also updated its Q2 2026 guidance to 0.270-0.270 EPS.

Cloudflare Stock Up 3.4%

Shares of NET traded up $8.46 during trading hours on Thursday, hitting $257.05. The company had a trading volume of 7,723,962 shares, compared to its average volume of 4,584,134. The firm has a fifty day moving average price of $203.01 and a 200-day moving average price of $200.50. The company has a debt-to-equity ratio of 1.35, a quick ratio of 1.98 and a current ratio of 1.98. The stock has a market capitalization of $90.48 billion, a price-to-earnings ratio of -886.35 and a beta of 1.67. Cloudflare has a 52-week low of $121.46 and a 52-week high of $260.00.

Cloudflare (NYSE:NET - Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The company reported $0.25 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.23 by $0.02. Cloudflare had a negative return on equity of 7.24% and a negative net margin of 4.72%.Cloudflare has set its FY 2026 guidance at 1.190-1.200 EPS and its Q2 2026 guidance at 0.270-0.270 EPS. On average, equities research analysts forecast that Cloudflare will post -0.11 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

NET has been the subject of several recent analyst reports. Barclays lifted their price target on Cloudflare from $235.00 to $250.00 and gave the stock an "overweight" rating in a research report on Wednesday, February 11th. Citigroup initiated coverage on Cloudflare in a research report on Wednesday, April 15th. They issued a "buy" rating for the company. Cantor Fitzgerald reaffirmed a "neutral" rating and issued a $224.00 price target on shares of Cloudflare in a research report on Wednesday, February 11th. Needham & Company LLC decreased their target price on Cloudflare from $285.00 to $250.00 and set a "buy" rating for the company in a research report on Wednesday, February 11th. Finally, BTIG Research boosted their target price on Cloudflare from $199.00 to $243.00 and gave the stock a "buy" rating in a research report on Wednesday, February 11th. One investment analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating, seven have issued a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat, Cloudflare currently has an average rating of "Moderate Buy" and an average price target of $232.62.

Insiders Place Their Bets

In other Cloudflare news, CEO Matthew Prince sold 52,384 shares of the business's stock in a transaction dated Thursday, February 26th. The stock was sold at an average price of $173.78, for a total value of $9,103,291.52. Following the completion of the transaction, the chief executive officer owned 22,911 shares of the company's stock, valued at approximately $3,981,473.58. The trade was a 69.57% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Michelle Zatlyn sold 35,080 shares of the business's stock in a transaction dated Thursday, February 19th. The shares were sold at an average price of $187.39, for a total value of $6,573,641.20. Following the sale, the insider owned 34,514 shares of the company's stock, valued at approximately $6,467,578.46. This represents a 50.41% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 638,766 shares of company stock valued at $125,757,221. 10.89% of the stock is owned by insiders.

Institutional Investors Weigh In On Cloudflare

Large investors have recently made changes to their positions in the company. Wiser Advisor Group LLC bought a new stake in shares of Cloudflare during the 3rd quarter valued at about $26,000. HM Payson & Co. bought a new stake in shares of Cloudflare during the 4th quarter valued at about $25,000. Wexford Capital LP bought a new stake in shares of Cloudflare during the 3rd quarter valued at about $30,000. Brown Brothers Harriman & Co. grew its stake in shares of Cloudflare by 55.4% during the 3rd quarter. Brown Brothers Harriman & Co. now owns 157 shares of the company's stock valued at $34,000 after purchasing an additional 56 shares during the period. Finally, JPL Wealth Management LLC bought a new position in shares of Cloudflare during the 3rd quarter valued at approximately $45,000. 82.68% of the stock is currently owned by institutional investors.

Cloudflare Company Profile

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.

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