Cloudflare (NYSE:NET) Releases FY 2026 Earnings Guidance

Key Points

• Cloudflare raised FY 2026 guidance to $1.35 EPS and about $3.0 billion in revenue, above analyst estimates of $1.02 EPS and $2.9 billion in revenue. Q4 EPS guidance is $0.43, also ahead of consensus.
• Third-quarter revenue increased 39.2% year over year to $782.5 million, beating expectations, while EPS of $0.38 topped the $0.34 estimate.
• Cloudflare shares rose 11% on Friday after the outlook update; analysts’ consensus rating was “Moderate Buy,” with a consensus price target of $333.75.

Cloudflare (NYSE:NET - Get Free Report) issued an update on its FY 2026 earnings guidance on Friday morning. The company provided EPS guidance of 1.350-1.350 for the period, compared to the consensus estimate of 1.020. The company issued revenue guidance of $3.0 billion, compared to the consensus revenue estimate of $2.9 billion. Cloudflare also updated its Q4 2026 guidance to 0.430-0.430 EPS.

Cloudflare Stock Up 11.0%

Shares of NET traded up $26.82 during trading hours on Friday, hitting $271.33. The company had a trading volume of 4,786,839 shares, compared to its average volume of 4,050,470. The firm has a fifty day moving average price of $319.02 and a 200-day moving average price of $249.31. The company has a debt-to-equity ratio of 1.22, a quick ratio of 1.82 and a current ratio of 1.82. The stock has a market capitalization of $95.91 billion, a price-to-earnings ratio of -469.37, a P/E/G ratio of 206.44 and a beta of 1.37. Cloudflare has a 52-week low of $158.83 and a 52-week high of $370.35.

Cloudflare (NYSE:NET - Get Free Report) last released its quarterly earnings data on Thursday, November 5th. The company reported $0.38 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.34 by $0.04. Cloudflare had a negative return on equity of 3.88% and a negative net margin of 8.21%. The business had revenue of $782.51 million for the quarter, compared to analysts' expectations of $737.16 million. During the same period in the prior year, the firm posted $0.27 EPS. The firm's quarterly revenue was up 39.2% on a year-over-year basis. On average, equities research analysts forecast that Cloudflare will post 0.03 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

Several brokerages have recently weighed in on NET. UBS Group began coverage on shares of Cloudflare in a research note on Tuesday. They set a "buy" rating on the stock. The Goldman Sachs Group set a $420.00 price objective on Cloudflare and gave the stock a "buy" rating in a research note on Friday. Wedbush initiated coverage on Cloudflare in a report on Tuesday. They issued an "outperform" rating on the stock. Guggenheim lifted their target price on Cloudflare from $160.00 to $190.00 and gave the company a "buy" rating in a research report on Friday. Finally, Mizuho lifted their target price on Cloudflare from $260.00 to $310.00 and gave the company an "outperform" rating in a research report on Wednesday, July 15th. Twenty-six analysts have rated the stock with a Buy rating, seven have given a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $333.75.

Insider Activity

In other news, CFO Thomas J. Seifert sold 12,500 shares of the business's stock in a transaction dated Monday, October 19th. The shares were sold at an average price of $299.59, for a total value of $3,744,875.00. Following the sale, the chief financial officer directly owned 104,958 shares in the company, valued at $31,444,367.22. The trade was a 10.64% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Carl Ledbetter sold 5,000 shares of the company's stock in a transaction that occurred on Monday, September 14th. The shares were sold at an average price of $312.22, for a total value of $1,561,100.00. Following the sale, the director owned 878,073 shares in the company, valued at approximately $274,151,952.06. This trade represents a 0.57% 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. Insiders sold a total of 259,057 shares of company stock worth $79,516,905 over the last 90 days. Corporate insiders own 10.66% of the company's stock.

Cloudflare News Summary

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Third-quarter revenue rose 39.2% year over year to $782.5 million, above the roughly $737 million consensus, while adjusted EPS of $0.38 beat the $0.34 estimate. Cloudflare delivers strong Q3 numbers
• Positive Sentiment: The company raised its fourth-quarter 2026 outlook to EPS of $0.43 and revenue of $845–$846 million, versus consensus estimates of $0.31 and $797.9 million. Its FY 2026 guidance also moved above expectations: EPS of $1.35 versus $1.02 and revenue of about $3.0 billion versus $2.9 billion. Cloudflare raises full-year guidance
• Positive Sentiment: Enterprise momentum adds support to the growth outlook: customers spending more than $100,000 annually increased 25% year over year. Piper Sandler reaffirmed its Overweight rating and raised its price target to $337 from $333.
• Neutral Sentiment: Analyst views were mixed. Needham lowered its price target to $365 while keeping a Buy rating, and Cantor Fitzgerald cut its target to $310 and maintained Neutral.
• Negative Sentiment: Despite the growth and outlook, reports noted that gross margin declined, free cash flow grew more slowly than revenue, and the GAAP operating loss widened—potential concerns about profitability as Cloudflare scales. Cloudflare sales rise, but margins face pressure

About Cloudflare

Cloudflare, Inc provides cloud-based services that help businesses and other organizations protect, connect and improve the performance of websites, applications and networks. Its global network delivers services including content delivery, domain name system management, and protection against distributed denial-of-service attacks and other cyber threats.

The company also offers web application security, bot management and Zero Trust services for securing access to applications and internal networks.

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