Cloudflare (NYSE:NET) Issues FY 2026 Earnings Guidance

Cloudflare (NYSE:NET) issued an update on its FY 2026 earnings guidance on Thursday morning. The company provided EPS guidance of 1.190-1.200 for the period, compared to the consensus EPS estimate of 0.880. The company issued revenue guidance of $2.8 billion-$2.8 billion, compared to the consensus revenue estimate of $2.8 billion. Cloudflare also updated its Q2 2026 guidance to 0.270-0.270 EPS.

Cloudflare Price Performance

NET stock traded up $8.46 on Thursday, reaching $257.05. 8,515,631 shares of the company’s stock were exchanged, compared to its average volume of 4,629,557. The stock has a fifty day moving average of $204.88 and a 200-day moving average of $200.83. Cloudflare has a twelve month low of $121.46 and a twelve month high of $260.00. The firm has a market cap of $90.48 billion, a PE ratio of -886.35 and a beta of 1.67. The company has a quick ratio of 1.98, a current ratio of 1.98 and a debt-to-equity ratio of 1.35.

Cloudflare (NYSE:NET) last announced its quarterly earnings data on Thursday, May 7th. The company reported $0.25 earnings per share for the quarter, topping analysts’ consensus estimates of $0.23 by $0.02. Cloudflare had a negative return on equity of 7.24% and a negative net margin of 4.72%.The firm had revenue of $639.76 million for the quarter, compared to analyst estimates of $620.83 million. During the same quarter in the prior year, the company posted $0.16 earnings per share. Cloudflare’s quarterly revenue was up 33.5% on a year-over-year basis. Cloudflare has set its FY 2026 guidance at 1.190-1.200 EPS and its Q2 2026 guidance at 0.270-0.270 EPS. As a group, equities analysts predict that Cloudflare will post -0.11 EPS for the current fiscal year.

Wall Street Analyst Weigh In

Several research firms have weighed in on NET. Scotiabank lowered their target price on Cloudflare from $255.00 to $225.00 and set a “sector perform” rating on the stock in a report on Wednesday, February 11th. Citigroup began coverage on Cloudflare in a report on Wednesday, April 15th. They issued a “buy” rating on the stock. Wolfe Research reissued a “peer perform” rating on shares of Cloudflare in a report on Monday, January 26th. Guggenheim upped their target price on Cloudflare from $117.00 to $140.00 and gave the company a “sell” rating in a report on Wednesday, February 11th. Finally, DZ Bank raised Cloudflare from a “hold” rating to a “buy” rating and set a $215.00 target price on the stock in a report on Friday, February 13th. One research analyst has rated the stock with a Strong Buy rating, nineteen have issued a Buy rating, seven have given a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $232.62.

Insider Transactions at Cloudflare

In other news, insider Michelle Zatlyn sold 35,080 shares of the firm’s stock in a transaction dated Thursday, February 19th. The stock was sold at an average price of $187.39, for a total value of $6,573,641.20. Following the transaction, the insider directly owned 34,514 shares in the company, valued at $6,467,578.46. This trade represents a 50.41% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Thomas J. Seifert sold 41,557 shares of the firm’s stock in a transaction dated Friday, February 20th. The stock was sold at an average price of $185.04, for a total value of $7,689,707.28. Following the completion of the transaction, the chief financial officer owned 85,452 shares in the company, valued at approximately $15,812,038.08. This trade represents a 32.72% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 638,766 shares of company stock worth $125,757,221 in the last three months. 10.89% of the stock is currently owned by company insiders.

Trending Headlines about Cloudflare

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Q1 beat: Cloudflare reported revenue up ~33% y/y (~$639.8M) and beat consensus on non‑GAAP EPS, showing continued top‑line growth that supports the company’s AI/edge strategy. Cloudflare Announces First Quarter 2026 Financial Results
• Positive Sentiment: Upside to profit guidance: management issued Q2 and fiscal‑year EPS ranges that are above Street EPS consensus, which could imply meaningful near‑term margin improvement if execution holds. Company Press Release / Slide Deck
• Positive Sentiment: Market/industry recognition and ecosystem moves: Cloudflare was named a Leader in Forrester’s edge report and is partnering with Wiz on AI app security — items that support the long‑term thesis around edge + AI infrastructure. Forrester / Market Note Wiz Partnership
• Neutral Sentiment: Analyst views remain mixed: several shops retain buy/hold ratings with average targets roughly near current levels, leaving limited immediate catalyst from upgrades. Barclays Reaffirmation
• Neutral Sentiment: Insider sales were reported (pre‑arranged plans), which some traders note but that activity appears routine rather than a clear red flag. Insider Trades
• Negative Sentiment: Major restructuring: Cloudflare announced layoffs of ~1,100 people (~20% of workforce) to reposition for an “agentic AI era,” raising execution and execution‑risk concerns tied to the transition. Business Insider Layoff Memo WSJ Coverage
• Negative Sentiment: Revenue guide and near‑term outlook: Q2 revenue guidance was essentially flat/slightly below consensus (guidance ~ $664–665M vs. estimates ~ $665M), which, combined with the layoffs, triggered investor concern about demand timing and growth sustainability. Reuters: Guidance & Cuts MSN: Guidance Reaction
• Negative Sentiment: Market reaction: the announcement prompted a sharp after‑hours selloff as investors digested the combination of restructuring, near‑term guidance and high valuation; commentators note momentum/valuation left the name vulnerable even after a good quarter. CNBC: After‑hours Selloff Earnings Discussion / Video

Institutional Investors Weigh In On Cloudflare

A number of large investors have recently modified their holdings of NET. Alyeska Investment Group L.P. grew its stake in shares of Cloudflare by 268.3% in the fourth quarter. Alyeska Investment Group L.P. now owns 332,299 shares of the company’s stock valued at $65,513,000 after buying an additional 242,069 shares in the last quarter. Defiance ETFs LLC acquired a new stake in shares of Cloudflare in the fourth quarter valued at about $37,350,000. Pinebridge Investments LLC acquired a new stake in shares of Cloudflare in the fourth quarter valued at about $36,241,000. Woodline Partners LP grew its stake in shares of Cloudflare by 1,000.1% in the third quarter. Woodline Partners LP now owns 183,206 shares of the company’s stock valued at $39,314,000 after buying an additional 166,552 shares in the last quarter. Finally, Marshall Wace LLP grew its stake in shares of Cloudflare by 31.1% in the fourth quarter. Marshall Wace LLP now owns 690,747 shares of the company’s stock valued at $136,181,000 after buying an additional 163,966 shares in the last quarter. Institutional investors and hedge funds own 82.68% of the company’s stock.

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.