Cloudflare (NYSE:NET) Updates Q3 2026 Earnings Guidance

Cloudflare (NYSE:NET) updated its third quarter 2026 earnings guidance on Thursday morning. The company provided earnings per share guidance of 0.340-0.340 for the period, compared to the consensus earnings per share estimate of 0.260. The company issued revenue guidance of $736.0 million-$737.0 million, compared to the consensus revenue estimate of $722.4 million. Cloudflare also updated its FY 2026 guidance to 1.250-1.260 EPS.

Analyst Ratings Changes

Several research analysts have recently commented on NET shares. Stifel Nicolaus set a $260.00 target price on Cloudflare in a research note on Friday, May 8th. Piper Sandler raised their price target on Cloudflare from $250.00 to $333.00 and gave the company an “overweight” rating in a report on Friday. Truist Financial lifted their price objective on shares of Cloudflare from $300.00 to $350.00 and gave the stock a “buy” rating in a research report on Friday. UBS Group increased their price objective on shares of Cloudflare from $250.00 to $350.00 and gave the company a “neutral” rating in a research report on Friday. Finally, Mizuho raised their target price on shares of Cloudflare from $260.00 to $310.00 and gave the stock an “outperform” rating in a research note on Wednesday, July 15th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating, six have issued a Hold rating and three have given a Sell rating to the stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $311.48.

Cloudflare Price Performance

NYSE NET traded up $16.57 on Friday, hitting $301.00. 8,765,257 shares of the company’s stock were exchanged, compared to its average volume of 3,205,803. The stock has a 50-day moving average of $257.02 and a 200-day moving average of $218.84. The stock has a market cap of $106.39 billion, a price-to-earnings ratio of -518.96, a P/E/G ratio of 212.72 and a beta of 1.65. Cloudflare has a 52 week low of $158.83 and a 52 week high of $324.73. The company has a current ratio of 1.96, a quick ratio of 1.96 and a debt-to-equity ratio of 1.29.

Cloudflare (NYSE:NET) last posted its quarterly earnings results on Wednesday, August 5th. The company reported $0.29 EPS for the quarter, topping analysts’ consensus estimates of $0.27 by $0.02. The company had revenue of $696.06 million during the quarter, compared to analysts’ expectations of $664.66 million. Cloudflare had a negative return on equity of 3.99% and a negative net margin of 8.21%.Cloudflare’s revenue was up 35.9% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.21 EPS. Analysts expect that Cloudflare will post 0.03 earnings per share for the current year.

Insider Activity at Cloudflare

In other Cloudflare news, CEO Matthew Prince sold 33,631 shares of the company’s stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $296.10, for a total value of $9,958,139.10. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark J. Hawkins sold 133 shares of Cloudflare stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $277.74, for a total value of $36,939.42. Following the sale, the director directly owned 10,632 shares in the company, valued at $2,952,931.68. The trade was a 1.24% 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 90 days, insiders sold 749,532 shares of company stock valued at $183,882,628. Company insiders own 10.66% of the company’s stock.

Key Cloudflare News

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Q2 results beat expectations. Revenue rose 35.9% year over year to $696.1 million, exceeding the approximately $664.7 million consensus estimate. Adjusted EPS was $0.29 versus expectations of $0.27, supported by large-customer additions, Workers adoption and improved execution. Cloudflare Q2 earnings report
• Positive Sentiment: Cloudflare raised its forecast. Third-quarter guidance calls for approximately $736 million-$737 million in revenue and $0.34 EPS, above analyst estimates. Full-year 2026 revenue guidance was lifted to roughly $2.864 billion-$2.870 billion, while EPS guidance increased to $1.25-$1.26. Management cited resilient AI-agent demand across its network. Reuters outlook report
• Positive Sentiment: Analysts responded with higher targets. Citizens JMP raised its target to $394, while Oppenheimer and Needham increased targets to $380. BTIG, RBC, Piper Sandler and Truist also raised targets and maintained bullish ratings, signaling confidence in Cloudflare’s AI growth opportunity.
• Positive Sentiment: New AI products add potential growth avenues. Cloudflare launched Kitesurf, a cloud-hosted browser designed for AI agents, and an AEO Visibility Dashboard that helps brands track recommendations from AI assistants. TechCrunch Kitesurf report
• Neutral Sentiment: Valuation and volatility remain elevated. The rally has pushed Cloudflare near record levels, leaving the stock dependent on continued high growth, margin improvement and successful AI monetization.
• Negative Sentiment: Insider selling is a modest sentiment risk. CEO Matthew Prince, CFO Thomas Seifert and director Carl Ledbetter sold shares under pre-arranged Rule 10b5-1 plans. These transactions may concern investors but do not necessarily indicate weakening business fundamentals.

Institutional Investors Weigh In On Cloudflare

Institutional investors have recently added to or reduced their stakes in the business. Empowered Funds LLC lifted its position in Cloudflare by 34.2% in the 1st quarter. Empowered Funds LLC now owns 6,656 shares of the company’s stock valued at $750,000 after acquiring an additional 1,696 shares in the last quarter. Sivia Capital Partners LLC purchased a new stake in shares of Cloudflare in the second quarter worth approximately $424,000. Cerity Partners LLC lifted its holdings in shares of Cloudflare by 30.1% in the second quarter. Cerity Partners LLC now owns 27,531 shares of the company’s stock valued at $5,391,000 after purchasing an additional 6,363 shares in the last quarter. Sei Investments Co. boosted its position in shares of Cloudflare by 40.1% during the second quarter. Sei Investments Co. now owns 329,036 shares of the company’s stock valued at $64,432,000 after buying an additional 94,112 shares during the last quarter. Finally, The Manufacturers Life Insurance Company raised its position in Cloudflare by 14.6% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 16,461 shares of the company’s stock valued at $3,224,000 after buying an additional 2,093 shares during the last quarter. 82.68% of the stock is owned by institutional investors.

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.