Cloudflare (NYSE:NET) Issues Quarterly Earnings Results

Cloudflare (NYSE:NET) announced its quarterly earnings results on Tuesday. The company reported $0.28 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.27 by $0.01, FiscalAI reports. The company had revenue of $614.51 million during the quarter, compared to the consensus estimate of $591.67 million. Cloudflare had a negative return on equity of 6.54% and a negative net margin of 5.12%.

Cloudflare Stock Performance

Shares of NET traded up $6.69 during trading hours on Tuesday, reaching $180.44. 10,450,638 shares of the company traded hands, compared to its average volume of 4,736,387. The stock has a market cap of $63.20 billion, a P/E ratio of -601.47, a price-to-earnings-growth ratio of 150.14 and a beta of 1.97. The stock’s fifty day moving average is $191.44 and its 200 day moving average is $205.16. Cloudflare has a 1-year low of $89.42 and a 1-year high of $260.00. The company has a debt-to-equity ratio of 1.46, a quick ratio of 2.04 and a current ratio of 2.04.

Wall Street Analyst Weigh In

A number of brokerages have recently weighed in on NET. Jefferies Financial Group set a $185.00 price objective on shares of Cloudflare in a report on Thursday, February 5th. BTIG Research raised Cloudflare from a “neutral” rating to a “buy” rating and set a $199.00 price target on the stock in a research note on Wednesday, February 4th. Wall Street Zen raised shares of Cloudflare from a “hold” rating to a “buy” rating in a research note on Saturday, November 8th. Citigroup decreased their price objective on shares of Cloudflare from $318.00 to $260.00 and set a “buy” rating for the company in a research note on Friday, January 16th. Finally, Piper Sandler dropped their target price on shares of Cloudflare from $249.00 to $220.00 and set a “neutral” rating for the company in a research report on Monday, January 5th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, nine have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, Cloudflare has a consensus rating of “Moderate Buy” and a consensus price target of $234.11.

Cloudflare News Summary

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Q4 results beat consensus: EPS $0.28 vs $0.27 expected and revenue $614.5M vs $591.7M — a clear execution beat that likely boosted the stock. View Press Release
• Positive Sentiment: Strong commercial momentum: Cloudflare said it closed its largest annual contract ever (~$42.5M/year) and reported total new ACV growth of ~50% YoY — the fastest since 2021, supporting faster revenue scaling expectations. Cloudflare Announces Fourth Quarter and Fiscal Year 2025 Financial Results
• Positive Sentiment: Consistent earnings execution: Cloudflare has beaten EPS estimates for seven straight quarters, reinforcing investor confidence in management’s ability to translate growth into delivered results. Live Earnings: Will Cloudflare Rise After Q4 Earnings Tonight?
• Positive Sentiment: Longer-term durability narrative: Coverage highlighting Cloudflare as resilient to AI disruption supports a growth-at-scale investment thesis for software/infrastructure players. Best Software Stocks to Buy That AI Can’t Disrupt (NET, APP, MDB)
• Neutral Sentiment: Company updated Q1 and FY2026 guidance (entry notes updated guidance) but the available summary here omits specific guidance figures, creating short-term uncertainty until full guidance details are reviewed in the release/slide deck. View Slide Deck
• Neutral Sentiment: Analyst/preview coverage and commentary (Seeking Alpha, MSN) are discussing expectations and catalysts for the print; these can amplify moves but don’t add new data beyond the release. Cloudflare Q4 earnings on deck: What to expect
• Negative Sentiment: Profitability remains a concern: Cloudflare still reports a negative net margin (~-5.1%) and negative return on equity, so despite revenue/ACV strength, investors must weigh continued unprofitability on a GAAP basis. View Press Release

Insider Activity at Cloudflare

In other Cloudflare news, CEO Matthew Prince sold 52,384 shares of the business’s stock in a transaction that occurred on Wednesday, November 19th. The stock was sold at an average price of $195.32, for a total value of $10,231,642.88. Following the sale, the chief executive officer owned 22,175 shares in the company, valued at approximately $4,331,221. The trade was a 70.26% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Michelle Zatlyn sold 35,099 shares of the company’s stock in a transaction that occurred on Thursday, November 20th. The stock was sold at an average price of $199.26, for a total value of $6,993,826.74. Following the sale, the insider owned 24,555 shares in the company, valued at approximately $4,892,829.30. This represents a 58.84% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 630,827 shares of company stock worth $124,436,992 over the last 90 days. Insiders own 10.89% of the company’s stock.

Institutional Investors Weigh In On Cloudflare

Institutional investors have recently bought and sold shares of the stock. Wiser Advisor Group LLC bought a new stake in Cloudflare during the 3rd quarter valued at approximately $26,000. Wexford Capital LP purchased a new position in Cloudflare in the third quarter worth about $30,000. Brown Brothers Harriman & Co. grew its position in shares of Cloudflare by 55.4% during the 3rd quarter. Brown Brothers Harriman & Co. now owns 157 shares of the company’s stock valued at $34,000 after acquiring an additional 56 shares during the period. JPL Wealth Management LLC bought a new stake in Cloudflare during the 3rd quarter worth approximately $45,000. Finally, Quarry LP lifted its holdings in Cloudflare by 164.6% in the 3rd quarter. Quarry LP now owns 254 shares of the company’s stock worth $55,000 after purchasing an additional 158 shares in the last quarter. 82.68% of the stock is currently owned by hedge funds and other institutional investors.

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.