Cloudflare (NYSE:NET) Issues Q2 2026 Earnings Guidance

Key Points

• Q2 2026 EPS guidance raised to $0.27 (vs. consensus $0.21) with revenue guidance of $664.0M–$665.0M roughly in line with estimates, and FY2026 EPS guided to $1.19–$1.20.
• Shares jumped about 3.4% to $257.05 after the update; the company also recently beat quarterly estimates with $0.25 EPS versus a $0.23 consensus.
• Insiders have sold significant stock recently (638,766 shares worth ~$125.8M over 90 days), while analysts maintain a "Moderate Buy" consensus with an average price target of $232.62.

Cloudflare (NYSE:NET - Get Free Report) updated its second quarter 2026 earnings guidance on Thursday. The company provided EPS guidance of 0.270-0.270 for the period, compared to the consensus EPS estimate of 0.210. The company issued revenue guidance of $664.0 million-$665.0 million, compared to the consensus revenue estimate of $665.3 million. Cloudflare also updated its FY 2026 guidance to 1.190-1.200 EPS.

Analyst Ratings Changes

Several equities analysts recently issued reports on the company. The Goldman Sachs Group lowered Cloudflare from a "buy" rating to a "sell" rating in a research note on Wednesday, April 15th. Zacks Research raised Cloudflare from a "strong sell" rating to a "hold" rating in a research note on Friday, March 13th. Piper Sandler raised Cloudflare from a "neutral" rating to an "overweight" rating and set a $222.00 target price on the stock in a research note on Tuesday, April 14th. Royal Bank Of Canada increased their target price on Cloudflare from $230.00 to $240.00 and gave the stock an "outperform" rating in a research note on Wednesday, February 11th. Finally, Wolfe Research reissued a "peer perform" rating on shares of Cloudflare in a research note on Monday, January 26th. One research analyst has rated the stock with a Strong Buy rating, nineteen have given a Buy rating, seven have assigned a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $232.62.

Cloudflare Stock Up 3.4%

NET stock traded up $8.46 during mid-day trading on Thursday, reaching $257.05. The company had a trading volume of 7,723,962 shares, compared to its average volume of 4,584,134. 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 company has a market capitalization of $90.48 billion, a price-to-earnings ratio of -886.35 and a beta of 1.67. The firm has a fifty day simple moving average of $203.01 and a 200 day simple moving average of $200.50. Cloudflare has a fifty-two week low of $121.46 and a fifty-two 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, beating analysts' consensus estimates 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. Analysts forecast that Cloudflare will post -0.11 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Cloudflare news, Director John Graham-Cumming sold 2,520 shares of the stock in a transaction dated Monday, May 4th. The stock was sold at an average price of $221.58, for a total value of $558,381.60. Following the sale, the director owned 494,067 shares of the company's stock, valued at $109,475,365.86. This trade represents a 0.51% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Thomas J. Seifert sold 10,000 shares of the stock in a transaction dated Friday, April 17th. The shares were sold at an average price of $197.98, for a total value of $1,979,800.00. Following the completion of the sale, the chief financial officer directly owned 221,681 shares in the company, valued at $43,888,404.38. This represents a 4.32% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 638,766 shares of company stock worth $125,757,221 over the last ninety days. Company insiders own 10.89% of the company's stock.

Institutional Investors Weigh In On Cloudflare

Institutional investors have recently added to or reduced their stakes in the business. Empowered Funds LLC grew its stake in Cloudflare by 34.2% during the 1st quarter. Empowered Funds LLC now owns 6,656 shares of the company's stock worth $750,000 after buying an additional 1,696 shares during the last quarter. Sivia Capital Partners LLC purchased a new position in Cloudflare during the 2nd quarter worth approximately $424,000. Cerity Partners LLC grew its stake in Cloudflare by 30.1% during the 2nd quarter. Cerity Partners LLC now owns 27,531 shares of the company's stock worth $5,391,000 after buying an additional 6,363 shares during the last quarter. Sei Investments Co. grew its stake in Cloudflare by 40.1% during the 2nd quarter. Sei Investments Co. now owns 329,036 shares of the company's stock worth $64,432,000 after buying an additional 94,112 shares during the last quarter. Finally, The Manufacturers Life Insurance Company grew its stake in Cloudflare by 14.6% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 16,461 shares of the company's stock worth $3,224,000 after buying an additional 2,093 shares during the last quarter. Hedge funds and other institutional investors own 82.68% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.