Scotiabank Predicts Cloudflare's FY2026 Earnings (NYSE:NET)

Key Points

• Scotiabank lowered its FY2026 EPS estimate for Cloudflare to $0.02 from $0.03, while maintaining an “Outperform” rating and a $390 price target. The firm forecasts FY2027 EPS of $0.34.
• Cloudflare’s latest quarterly results exceeded expectations, with EPS of $0.29 versus $0.27 expected and revenue of $696.1 million versus $664.7 million expected. Revenue increased 35.9% year over year.
• Analyst sentiment remains favorable, with a consensus “Moderate Buy” rating and an average price target of $320.19, although insiders sold approximately $177.4 million of shares over the past 90 days.

Cloudflare, Inc. (NYSE:NET - Free Report) - Equities research analysts at Scotiabank cut their FY2026 earnings per share estimates for Cloudflare in a research report issued to clients and investors on Wednesday, August 19th. Scotiabank analyst P. Colville now expects that the company will post earnings of $0.02 per share for the year, down from their prior forecast of $0.03. Scotiabank currently has a "Outperform" rating and a $390.00 price target on the stock. The consensus estimate for Cloudflare's current full-year earnings is $0.03 per share. Scotiabank also issued estimates for Cloudflare's FY2027 earnings at $0.34 EPS.

Several other analysts have also recently commented on NET. Deutsche Bank Aktiengesellschaft raised shares of Cloudflare to a "buy" rating in a research note on Tuesday, July 7th. Mizuho upped their price objective on Cloudflare from $260.00 to $310.00 and gave the stock an "outperform" rating in a report on Wednesday, July 15th. UBS Group upped their price objective on Cloudflare from $250.00 to $350.00 and gave the stock a "neutral" rating in a report on Friday, August 7th. TD Cowen increased their price objective on Cloudflare from $300.00 to $355.00 and gave the company a "buy" rating in a research report on Friday, August 7th. Finally, Zacks Research cut Cloudflare from a "strong-buy" rating to a "hold" rating in a research note on Friday, August 14th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, seven have assigned a Hold rating and four have issued a Sell rating to the company. According to MarketBeat.com, Cloudflare presently has an average rating of "Moderate Buy" and a consensus price target of $320.19.

Cloudflare Trading Up 0.0%

Shares of NYSE NET opened at $293.16 on Monday. Cloudflare has a 1-year low of $158.83 and a 1-year high of $332.22. The company has a 50-day moving average of $268.24 and a two-hundred day moving average of $227.77. The company has a market cap of $103.62 billion, a PE ratio of -505.45, a P/E/G ratio of 180.01 and a beta of 1.65. The company has a current ratio of 1.82, a quick ratio of 1.82 and a debt-to-equity ratio of 1.22.

Cloudflare (NYSE:NET - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The company reported $0.29 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.27 by $0.02. The business had revenue of $696.06 million for the quarter, compared to the consensus estimate of $664.66 million. Cloudflare had a negative net margin of 8.21% and a negative return on equity of 3.88%. The firm's quarterly revenue was up 35.9% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.21 EPS. Cloudflare has set its Q3 2026 guidance at 0.340-0.340 EPS and its FY 2026 guidance at 1.250-1.260 EPS.

Insider Buying and Selling at Cloudflare

In other Cloudflare news, CFO Thomas J. Seifert sold 10,000 shares of the firm's stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $307.32, for a total value of $3,073,200.00. Following the transaction, the chief financial officer directly owned 110,846 shares of the company's stock, valued at approximately $34,065,192.72. This trade represents a 8.27% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Alissa Michelle Starzak sold 2,538 shares of Cloudflare stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $304.68, for a total transaction of $773,277.84. Following the sale, the insider directly owned 112,082 shares of the company's stock, valued at $34,149,143.76. This represents a 2.21% 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. Insiders sold a total of 682,415 shares of company stock valued at $177,417,210 over the last 90 days. Company insiders own 10.66% of the company's stock.

Hedge Funds Weigh In On Cloudflare

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. CX Institutional grew its position in Cloudflare by 49.4% during the second quarter. CX Institutional now owns 133 shares of the company's stock valued at $33,000 after buying an additional 44 shares during the period. Wealth Architects LLC increased its holdings in Cloudflare by 4.6% during the second quarter. Wealth Architects LLC now owns 1,022 shares of the company's stock worth $251,000 after buying an additional 45 shares during the last quarter. Forum Financial Management LP raised its position in Cloudflare by 3.5% in the second quarter. Forum Financial Management LP now owns 1,498 shares of the company's stock worth $367,000 after acquiring an additional 50 shares during the period. Quadrant Private Wealth Management LLC raised its position in Cloudflare by 3.2% in the first quarter. Quadrant Private Wealth Management LLC now owns 1,653 shares of the company's stock worth $341,000 after acquiring an additional 51 shares during the period. Finally, Essential Partners LLC boosted its stake in Cloudflare by 14.5% in the first quarter. Essential Partners LLC now owns 402 shares of the company's stock valued at $83,000 after acquiring an additional 51 shares during the last quarter. Institutional investors own 82.68% of the company's stock.

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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