FY2026 Earnings Forecast for Cloudflare Issued By Scotiabank

Key Points

• Scotiabank raised its FY2026 EPS estimate for Cloudflare to $(0.04) from $(0.12), while keeping a Sector Perform rating and a $225 price target. It also projected FY2027 earnings of $0.07 per share.
• Cloudflare’s latest quarter beat expectations, reporting $0.25 EPS on $639.76 million in revenue, with revenue up 33.5% year over year. The company also guided FY2026 EPS to 1.190–1.200 and Q2 2026 EPS to 0.27.
• Analyst sentiment remains broadly positive, with 18 Buy ratings, 7 Hold ratings, and 3 Sell ratings, giving Cloudflare a Moderate Buy consensus and an average price target of $236.68.

Cloudflare, Inc. (NYSE:NET - Free Report) - Stock analysts at Scotiabank upped their FY2026 earnings estimates for shares of Cloudflare in a research report issued to clients and investors on Thursday, May 14th. Scotiabank analyst P. Colville now anticipates that the company will earn ($0.04) per share for the year, up from their previous estimate of ($0.12). Scotiabank currently has a "Sector Perform" rating and a $225.00 price target on the stock. The consensus estimate for Cloudflare's current full-year earnings is ($0.09) per share. Scotiabank also issued estimates for Cloudflare's FY2027 earnings at $0.07 EPS.

NET has been the subject of several other reports. Barclays upped their price objective on shares of Cloudflare from $235.00 to $250.00 and gave the stock an "overweight" rating in a report on Wednesday, February 11th. UBS Group reaffirmed a "neutral" rating and set a $220.00 price objective on shares of Cloudflare in a report on Wednesday, February 11th. Jefferies Financial Group initiated coverage on shares of Cloudflare in a report on Wednesday, April 15th. They set a "buy" rating for the company. Guggenheim upped their price objective on shares of Cloudflare from $117.00 to $140.00 and gave the stock a "sell" rating in a report on Wednesday, February 11th. Finally, DZ Bank raised shares of Cloudflare from a "hold" rating to a "buy" rating and set a $215.00 price target for the company in a report on Friday, February 13th. Eighteen research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and three have issued a Sell rating to the company. According to MarketBeat.com, Cloudflare currently has a consensus rating of "Moderate Buy" and an average price target of $236.68.

Cloudflare Price Performance

NYSE NET opened at $197.14 on Monday. The company has a current ratio of 1.96, a quick ratio of 1.96 and a debt-to-equity ratio of 1.29. The company has a fifty day simple moving average of $206.94 and a 200 day simple moving average of $199.92. The company has a market cap of $69.68 billion, a P/E ratio of -788.54 and a beta of 1.67. Cloudflare has a 1 year low of $152.41 and a 1 year high of $260.00.

Cloudflare (NYSE:NET - Get Free Report) last posted its quarterly earnings data 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. The business had revenue of $639.76 million during the quarter, compared to the consensus estimate of $620.83 million. Cloudflare had a negative net margin of 3.72% and a negative return on equity of 5.65%. Cloudflare's quarterly revenue was up 33.5% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.16 EPS. Cloudflare has set its FY 2026 guidance at 1.190-1.200 EPS and its Q2 2026 guidance at 0.270-0.270 EPS.

Institutional Trading of Cloudflare

Hedge funds have recently bought and sold shares of the stock. Norges Bank bought a new position in shares of Cloudflare during the 4th quarter worth about $718,316,000. Jennison Associates LLC lifted its holdings in shares of Cloudflare by 135.8% during the 1st quarter. Jennison Associates LLC now owns 4,394,484 shares of the company's stock worth $906,758,000 after acquiring an additional 2,530,872 shares during the period. Corient Private Wealth LLC lifted its holdings in shares of Cloudflare by 4,042.6% during the 4th quarter. Corient Private Wealth LLC now owns 1,399,378 shares of the company's stock worth $275,887,000 after acquiring an additional 1,365,598 shares during the period. Groupama Asset Managment lifted its holdings in shares of Cloudflare by 82.6% during the 3rd quarter. Groupama Asset Managment now owns 2,100,000 shares of the company's stock worth $450,639,000 after acquiring an additional 950,000 shares during the period. Finally, Vanguard Group Inc. lifted its holdings in shares of Cloudflare by 2.6% during the 3rd quarter. Vanguard Group Inc. now owns 32,317,249 shares of the company's stock worth $6,934,958,000 after acquiring an additional 821,684 shares during the period. 82.68% of the stock is owned by institutional investors.

Insider Transactions at Cloudflare

In other Cloudflare news, insider Michelle Zatlyn sold 25,641 shares of the stock in a transaction on Wednesday, April 22nd. The shares were sold at an average price of $209.15, for a total value of $5,362,815.15. Following the completion of the sale, the insider directly owned 34,514 shares of the company's stock, valued at $7,218,603.10. This represents a 42.62% decrease in their position. The sale 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, Director John Graham-Cumming sold 2,520 shares of the stock in a transaction on Monday, May 4th. The shares were sold at an average price of $221.58, for a total transaction of $558,381.60. Following the completion of the sale, the director directly owned 494,067 shares of the company's stock, valued at approximately $109,475,365.86. This trade represents a 0.51% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 636,246 shares of company stock worth $125,320,379. 10.89% of the stock is currently owned by insiders.

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.

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