Cloudflare (NYSE:NET) Updates FY 2025 Earnings Guidance

Key Points

• Cloudflare updated its FY 2025 earnings guidance, projecting earnings per share of 0.850-0.860, surpassing the consensus estimate of 0.797, while revenue guidance remains steady at $2.1 billion.
• The company's stock rose by 3.3% to reach $207.57, with a market capitalization of $71.95 billion and a P/E ratio of -902.48.
• In recent analyst ratings, the price target for Cloudflare was adjusted by Jefferies Financial Group to $150.00 while Capital One Financial upgraded their rating to "strong-buy."

Cloudflare (NYSE:NET - Get Free Report) issued an update on its FY 2025 earnings guidance on Thursday morning. The company provided earnings per share guidance of 0.850-0.860 for the period, compared to the consensus earnings per share estimate of 0.797. The company issued revenue guidance of $2.1 billion-$2.1 billion, compared to the consensus revenue estimate of $2.1 billion. Cloudflare also updated its Q3 2025 guidance to 0.230-0.23 EPS.

Cloudflare Trading Up 3.3%

Shares of NET stock traded up $6.72 during trading hours on Thursday, reaching $207.57. The company's stock had a trading volume of 6,567,762 shares, compared to its average volume of 3,712,662. The stock has a market capitalization of $71.95 billion, a P/E ratio of -902.48 and a beta of 1.85. The company has a current ratio of 3.20, a quick ratio of 3.20 and a debt-to-equity ratio of 0.90. The firm's fifty day simple moving average is $182.66 and its 200 day simple moving average is $147.77. Cloudflare has a one year low of $69.26 and a one year high of $210.98.

Cloudflare (NYSE:NET - Get Free Report) last released its earnings results on Thursday, July 31st. The company reported ($0.13) EPS for the quarter, missing analysts' consensus estimates of $0.18 by ($0.31). Cloudflare had a negative return on equity of 6.31% and a negative net margin of 4.62%. Equities research analysts expect that Cloudflare will post -0.11 EPS for the current year.

Analyst Ratings Changes

NET has been the topic of several recent research reports. Jefferies Financial Group decreased their price objective on Cloudflare from $170.00 to $150.00 and set a "hold" rating on the stock in a research note on Friday, May 9th. Piper Sandler reiterated a "neutral" rating and issued a $151.00 target price (up previously from $112.00) on shares of Cloudflare in a report on Friday, May 9th. KeyCorp assumed coverage on Cloudflare in a research report on Friday, June 6th. They set an "overweight" rating and a $210.00 target price for the company. Capital One Financial upgraded Cloudflare from a "hold" rating to a "strong-buy" rating in a report on Thursday, May 8th. Finally, Needham & Company LLC lifted their target price on Cloudflare from $145.00 to $160.00 and gave the company a "buy" rating in a research report on Friday, May 9th. Three analysts have rated the stock with a sell rating, nine have issued a hold rating, fifteen have given a buy rating and one has issued a strong buy rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $161.72.

Insider Activity

In related news, CFO Thomas J. Seifert sold 59,130 shares of the stock in a transaction on Monday, July 28th. The shares were sold at an average price of $200.30, for a total transaction of $11,843,739.00. Following the completion of the transaction, the chief financial officer owned 241,550 shares in the company, valued at approximately $48,382,465. This represents a 19.67% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Thomas J. Seifert sold 34,270 shares of the company's stock in a transaction on Monday, July 21st. The stock was sold at an average price of $200.17, for a total transaction of $6,859,825.90. Following the sale, the chief financial officer directly owned 241,550 shares in the company, valued at $48,351,063.50. This trade represents a 12.42% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 688,062 shares of company stock valued at $121,498,887 in the last ninety days. 10.89% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Cloudflare

An institutional investor recently raised its position in Cloudflare stock. Empowered Funds LLC lifted its stake in Cloudflare, Inc. (NYSE:NET - Free Report) by 34.2% during the first quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 6,656 shares of the company's stock after acquiring an additional 1,696 shares during the period. Empowered Funds LLC's holdings in Cloudflare were worth $750,000 at the end of the most recent reporting period. 82.68% of the stock is currently owned by institutional investors.

Cloudflare Company Profile

Cloudflare, Inc operates as a cloud services provider that delivers a range of services to businesses worldwide. The company provides an integrated cloud-based security solution to secure a range of combination of platforms, including public cloud, private cloud, on-premise, software-as-a-service applications, and IoT devices; and website and application security products comprising web application firewall, bot management, distributed denial of service, API gateways, SSL/TLS encryption, script management, security center, and rate limiting products.

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