Cloudflare (NYSE:NET) Releases FY 2026 Earnings Guidance

Key Points

• Cloudflare issued upbeat FY 2026 guidance, forecasting EPS of $1.250–$1.260 versus the $0.960 consensus and revenue of approximately $2.9 billion versus the $2.8 billion estimate. Q3 EPS guidance was set at $0.34.
• Analysts maintain a generally positive view, with a consensus rating of “Moderate Buy” and an average price target of $265.27, although Benchmark downgraded the stock to “underperform” and UBS rated it “neutral.”
• Cloudflare shares fell $9.63 to $283.33 in Thursday trading, while insiders sold $166.0 million worth of stock during the latest quarter under pre-arranged trading plans.

Cloudflare (NYSE:NET - Get Free Report) issued an update on its FY 2026 earnings guidance on Thursday morning. The company provided EPS guidance of 1.250-1.260 for the period, compared to the consensus estimate of 0.960. The company issued revenue guidance of $2.9 billion-$2.9 billion, compared to the consensus revenue estimate of $2.8 billion. Cloudflare also updated its Q3 2026 guidance to 0.340-0.340 EPS.

Analysts Set New Price Targets

NET has been the subject of several recent analyst reports. Piper Sandler reissued an "overweight" rating on shares of Cloudflare in a report on Wednesday, June 10th. Benchmark downgraded shares of Cloudflare to an "underperform" rating in a report on Tuesday, July 7th. Sanford C. Bernstein restated a "market perform" rating and issued a $136.00 price target on shares of Cloudflare in a research note on Wednesday, June 10th. KeyCorp restated an "overweight" rating on shares of Cloudflare in a research report on Wednesday, June 10th. Finally, UBS Group boosted their price target on shares of Cloudflare from $220.00 to $250.00 and gave the stock a "neutral" rating in a report on Wednesday, June 10th. Two research analysts have rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, six have issued a Hold rating and four have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $265.27.

Cloudflare Stock Performance

NET traded down $9.63 on Thursday, reaching $283.33. The company had a trading volume of 5,482,078 shares, compared to its average volume of 4,307,386. The company has a quick ratio of 1.96, a current ratio of 1.96 and a debt-to-equity ratio of 1.29. Cloudflare has a 1 year low of $158.83 and a 1 year high of $305.00. The stock has a market capitalization of $100.15 billion, a PE ratio of -1,133.31, a P/E/G ratio of 225.36 and a beta of 1.65. The stock has a 50-day moving average price of $254.72 and a 200-day moving average price of $217.56.

Cloudflare (NYSE:NET - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The company reported $0.25 EPS for the quarter, beating analysts' consensus estimates of $0.23 by $0.02. Cloudflare had a negative net margin of 3.72% and a negative return on equity of 5.65%. The firm had revenue of $639.75 million during the quarter, compared to the consensus estimate of $620.83 million. During the same quarter last year, the firm earned $0.16 earnings per share. The firm's revenue was up 33.5% compared to the same quarter last year. As a group, research analysts forecast that Cloudflare will post 0.03 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Director Carl Ledbetter sold 5,000 shares of Cloudflare stock in a transaction dated Tuesday, July 7th. The stock was sold at an average price of $268.11, for a total transaction of $1,340,550.00. Following the sale, the director directly owned 888,073 shares of the company's stock, valued at approximately $238,101,252.03. The trade was a 0.56% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director John Graham-Cumming sold 2,520 shares of the stock in a transaction that occurred on Monday, July 6th. The stock was sold at an average price of $247.28, for a total value of $623,145.60. Following the transaction, the director directly owned 494,909 shares in the company, valued at approximately $122,381,097.52. This represents a 0.51% 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 sold a total of 689,532 shares of company stock valued at $165,956,228 in the last quarter. Corporate insiders own 10.66% of the company's stock.

Trending Headlines about Cloudflare

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Q2 results exceeded estimates. Cloudflare reported adjusted EPS of $0.29, ahead of the $0.27 consensus, while revenue reached $696.06 million versus expectations of $664.66 million. The revenue beat indicates continued demand for the company’s connectivity, security and developer services. Cloudflare Stock Pops on Q2 Earnings Print
• Positive Sentiment: Third-quarter guidance was well above consensus. Cloudflare forecast EPS of $0.34 and revenue of $736 million to $737 million, compared with analyst estimates of $0.26 and $722.4 million, respectively. The outlook suggests management expects momentum to continue and may help support the company’s growth premium. Cloudflare Q2 Earnings and Guidance
• Positive Sentiment: AI product expansion adds to the growth story. Cloudflare launched an AEO Visibility Dashboard that shows whether AI assistants recommend a customer’s business. The company also recently introduced Identity-Aware AI Gateway and Cloudflare OS, expanding its opportunity in AI security, governance and enterprise infrastructure. Cloudflare Adds AEO Visibility Dashboard
• Neutral Sentiment: Profitability remains a consideration. Despite the adjusted EPS beat, Cloudflare continues to report a negative net margin and negative return on equity. Investors will likely focus on whether strong revenue growth translates into sustained GAAP profitability and cash-flow improvement.
• Negative Sentiment: Valuation and insider selling remain risks. Cloudflare’s market capitalization and valuation multiples leave limited room for weaker growth or disappointing guidance. CEO Matthew Prince also sold multiple blocks of shares totaling tens of millions of dollars under pre-arranged Rule 10b5-1 plans. While scheduled sales do not necessarily signal deteriorating fundamentals, they may temper sentiment. Cloudflare CEO Stock Sale

Institutional Trading of Cloudflare

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

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.

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