Cloudflare (NYSE:NET) Updates Q3 2025 Earnings Guidance

Key Points

• Cloudflare has updated its Q3 2025 earnings guidance, forecasting EPS between 0.230-0.23 and revenue of $543.5 million-$544.5 million, exceeding analysts' expectations.
• The company's stock recently increased by $6.72 to reach $207.57, with a significant trading volume of 6,714,098 shares.
• Recent analyst actions include Mizuho raising Cloudflare's price target from $155.00 to $220.00 and a general trend of both upgrades and downgrades from various analysts.

Cloudflare (NYSE:NET - Get Free Report) issued an update on its third quarter 2025 earnings guidance on Thursday morning. The company provided EPS guidance of 0.230-0.23 for the period, compared to the consensus EPS estimate of 0.214. The company issued revenue guidance of $543.5 million-$544.5 million, compared to the consensus revenue estimate of $538.3 million. Cloudflare also updated its FY 2025 guidance to 0.850-0.860 EPS.

Cloudflare Stock Performance

NET stock traded up $6.72 during trading on Thursday, reaching $207.57. The stock had a trading volume of 6,714,098 shares, compared to its average volume of 3,715,039. Cloudflare has a 52 week low of $69.26 and a 52 week high of $210.98. The stock's 50 day moving average is $182.66 and its two-hundred day moving average is $147.77. 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 has a market cap of $71.95 billion, a PE ratio of -902.48 and a beta of 1.85.

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

Analyst Ratings Changes

NET has been the subject of a number of analyst reports. Mizuho upped their price target on Cloudflare from $155.00 to $220.00 and gave the stock an "outperform" rating in a research report on Wednesday, July 16th. CICC Research upgraded Cloudflare from a "market perform" rating to an "outperform" rating and set a $154.00 price target for the company in a research report on Monday, May 12th. Piper Sandler restated a "neutral" rating and issued a $151.00 price target (up previously from $112.00) on shares of Cloudflare in a research report on Friday, May 9th. Guggenheim upped their price target on Cloudflare from $68.00 to $70.00 and gave the stock a "sell" rating in a research report on Friday, May 9th. Finally, DZ Bank restated a "sell" rating and issued a $170.00 price target on shares of Cloudflare in a research report on Tuesday, July 22nd. Three analysts have rated the stock with a sell rating, nine have assigned a hold rating, fifteen have given a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat, Cloudflare has an average rating of "Moderate Buy" and an average target price of $161.72.

Insider Buying and Selling

In related news, Director Carl Ledbetter sold 15,000 shares of the firm's stock in a transaction on Monday, July 28th. The shares were sold at an average price of $199.85, for a total value of $2,997,750.00. Following the transaction, the director directly owned 1,043,073 shares in the company, valued at approximately $208,458,139.05. This trade represents a 1.42% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CFO Thomas J. Seifert sold 59,130 shares of the firm's stock in a transaction on Monday, July 28th. The stock was sold at an average price of $200.30, for a total transaction of $11,843,739.00. Following the completion of the sale, the chief financial officer owned 241,550 shares in the company, valued at $48,382,465. This represents a 19.67% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 688,062 shares of company stock worth $121,498,887. Insiders own 10.89% of the company's stock.

Hedge Funds Weigh In On Cloudflare

An institutional investor recently raised its position in Cloudflare stock. Empowered Funds LLC grew its stake in Cloudflare, Inc. (NYSE:NET - Free Report) by 34.2% in the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 6,656 shares of the company's stock after buying an additional 1,696 shares during the quarter. Empowered Funds LLC's holdings in Cloudflare were worth $750,000 at the end of the most recent reporting period. Institutional investors and hedge funds own 82.68% of the company's stock.

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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