Scotiabank Estimates Cloudflare's FY2027 Earnings (NYSE:NET)

Key Points

• Scotiabank boosted its FY2027 EPS estimate for Cloudflare to $0.40 per share from $0.17, far above the current consensus estimate of $0.01.
• Wall Street sentiment remains broadly positive, with multiple firms recently raising price targets or reiterating bullish ratings; MarketBeat’s consensus rating is Moderate Buy with a $241.35 target.
• Cloudflare recently beat quarterly expectations, reporting $0.25 EPS and $639.76 million in revenue, while revenue grew 33.5% year over year.

Cloudflare, Inc. (NYSE:NET - Free Report) - Equities research analysts at Scotiabank raised their FY2027 EPS estimates for Cloudflare in a report issued on Thursday, June 11th. Scotiabank analyst P. Colville now expects that the company will earn $0.40 per share for the year, up from their prior forecast of $0.17. The consensus estimate for Cloudflare's current full-year earnings is $0.01 per share.

NET has been the subject of a number of other research reports. Morgan Stanley reissued an "overweight" rating and set a $305.00 target price on shares of Cloudflare in a research report on Thursday, June 4th. Royal Bank Of Canada increased their target price on shares of Cloudflare from $240.00 to $260.00 and gave the company an "outperform" rating in a research report on Wednesday, June 10th. TD Cowen reissued a "buy" rating on shares of Cloudflare in a research report on Wednesday. Piper Sandler restated an "overweight" rating on shares of Cloudflare in a research note on Wednesday. Finally, Cantor Fitzgerald restated a "neutral" rating and set a $230.00 price target (up from $224.00) on shares of Cloudflare in a research note on Wednesday. Twenty research analysts have rated the stock with a Buy rating, seven have given a Hold rating and three have given a Sell rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $241.35.

Cloudflare Trading Down 0.3%

NYSE:NET opened at $227.91 on Monday. Cloudflare has a 52 week low of $158.83 and a 52 week high of $276.82. The firm has a 50 day moving average of $216.10 and a 200 day moving average of $201.73. The company has a quick ratio of 1.96, a current ratio of 1.96 and a debt-to-equity ratio of 1.29. The stock has a market capitalization of $80.56 billion, a price-to-earnings ratio of -911.62, a PEG ratio of 481.14 and a beta of 1.70.

Cloudflare (NYSE:NET - Get Free Report) last posted its earnings results 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 company had revenue of $639.76 million during the quarter, compared to analysts' expectations of $620.83 million. During the same quarter in the prior year, the company posted $0.16 earnings per share. Cloudflare's revenue for the quarter was up 33.5% compared to the same quarter last year. 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

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Trek Financial LLC purchased a new position in shares of Cloudflare in the fourth quarter worth about $1,793,000. Lingotto Investment Management LLP purchased a new position in shares of Cloudflare in the fourth quarter worth about $34,626,000. Jupiter Asset Management Ltd. lifted its stake in shares of Cloudflare by 1,984.7% in the fourth quarter. Jupiter Asset Management Ltd. now owns 197,710 shares of the company's stock worth $38,979,000 after buying an additional 188,226 shares in the last quarter. Massachusetts Financial Services Co. MA lifted its stake in shares of Cloudflare by 25.8% in the fourth quarter. Massachusetts Financial Services Co. MA now owns 1,639,661 shares of the company's stock worth $323,259,000 after buying an additional 336,768 shares in the last quarter. Finally, Bank Julius Baer & Co. Ltd Zurich lifted its stake in shares of Cloudflare by 275.6% in the fourth quarter. Bank Julius Baer & Co. Ltd Zurich now owns 37,072 shares of the company's stock worth $7,348,000 after buying an additional 27,202 shares in the last quarter. Institutional investors and hedge funds own 82.68% of the company's stock.

Insider Buying and Selling at Cloudflare

In other news, CEO Matthew Prince sold 52,384 shares of the stock in a transaction on Monday, April 6th. The shares were sold at an average price of $210.02, for a total value of $11,001,687.68. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Michelle Zatlyn sold 35,080 shares of the stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $213.98, for a total transaction of $7,506,418.40. Following the completion of the sale, the insider owned 47,425 shares in the company, valued at $10,148,001.50. The trade was a 42.52% decrease in their position. 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. In the last quarter, insiders have sold 475,400 shares of company stock worth $100,851,370. 10.66% of the stock is owned by corporate insiders.

Key Cloudflare News

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Truist Financial raised its price target on Cloudflare to $250 from $225 and reiterated a buy rating, implying further upside from current levels. Truist raises Cloudflare price target
• Positive Sentiment: Morgan Stanley also sharply increased its Cloudflare price target, adding to the bullish analyst backdrop and reinforcing the view that expectations for the company are improving. Morgan Stanley raises Cloudflare price target
• Positive Sentiment: Barclays kept a buy rating on Cloudflare, while other reports noted Wall Street’s overall average recommendation remains equivalent to a Buy, supporting investor confidence in the stock. Barclays keeps buy rating on Cloudflare
• Positive Sentiment: Zacks said Cloudflare may be well poised for a surge because of solid earnings estimate revisions, which often signals improving fundamentals and stronger near-term sentiment. Zacks says Cloudflare may surge
• Neutral Sentiment: Jim Cramer commented that Cloudflare’s long-term direction looks “pretty fabulous,” but also noted the stock has been volatile, making the takeaway more of a commentary on long-term prospects than a direct catalyst. Jim Cramer comments on Cloudflare
• Negative Sentiment: One report flagged a new sell recommendation for Cloudflare, suggesting some analysts remain cautious despite the broader bullish tone. Cloudflare new sell recommendation

Cloudflare Company Profile

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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