Cloudflare (NYSE:NET) Issues FY 2026 Earnings Guidance

Cloudflare (NYSE:NET) issued an update on its FY 2026 earnings guidance on Thursday. The company provided earnings per share guidance of 1.250-1.260 for the period, compared to the consensus earnings per share estimate of 0.960. The company issued revenue guidance of $2.9 billion-$2.9 billion, compared to the consensus revenue estimate of $2.8 billion. Cloudflare also updated its Q3 2026 guidance to 0.340-0.340 EPS.

Cloudflare Price Performance

Cloudflare stock traded down $9.63 during mid-day trading on Thursday, reaching $283.33. 5,482,078 shares of the company were exchanged, compared to its average volume of 4,307,386. The company has a fifty day simple moving average of $254.72 and a 200-day simple moving average of $217.56. The firm has a market cap of $100.15 billion, a PE ratio of -1,133.31, a PEG ratio of 225.36 and a beta of 1.65. The company has a debt-to-equity ratio of 1.29, a current ratio of 1.96 and a quick ratio of 1.96. Cloudflare has a 12 month low of $158.83 and a 12 month high of $305.00.

Cloudflare (NYSE:NET) last issued its quarterly earnings results on Thursday, May 7th. The company reported $0.25 EPS for the quarter, topping analysts’ consensus estimates of $0.23 by $0.02. Cloudflare had a negative return on equity of 5.65% and a negative net margin of 3.72%.The company had revenue of $639.75 million for the quarter, compared to analysts’ expectations of $620.83 million. During the same quarter last year, the business earned $0.16 earnings per share. Cloudflare’s revenue was up 33.5% on a year-over-year basis. As a group, equities research analysts expect that Cloudflare will post 0.03 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

Several research firms recently issued reports on NET. Guggenheim restated a “sell” rating and issued a $140.00 target price on shares of Cloudflare in a report on Wednesday, June 10th. Deutsche Bank Aktiengesellschaft raised shares of Cloudflare to a “buy” rating in a report on Tuesday, July 7th. Royal Bank Of Canada restated an “outperform” rating and issued a $290.00 target price on shares of Cloudflare in a research note on Thursday, July 16th. Susquehanna upped their target price on shares of Cloudflare from $190.00 to $200.00 and gave the stock a “neutral” rating in a report on Monday, May 11th. Finally, Oppenheimer boosted their price objective on Cloudflare from $300.00 to $330.00 and gave the stock an “outperform” rating in a report on Thursday, July 23rd. Two research analysts have rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, six have issued a Hold rating and four have assigned a Sell rating to the stock. Based on data from MarketBeat.com, Cloudflare presently has a consensus rating of “Moderate Buy” and a consensus price target of $265.27.

Insider Buying and Selling

In related news, CEO Matthew Prince sold 33,631 shares of the firm’s stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $296.10, for a total transaction of $9,958,139.10. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director John Graham-Cumming sold 2,520 shares of the business’s stock in a transaction that occurred on Monday, July 6th. The stock was sold at an average price of $247.28, for a total transaction of $623,145.60. Following the completion of the transaction, the director owned 494,909 shares of the company’s stock, valued at approximately $122,381,097.52. The trade was a 0.51% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 689,532 shares of company stock valued at $165,956,228. Insiders own 10.66% of the company’s stock.

Trending Headlines about Cloudflare

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Q2 results exceeded estimates. Cloudflare reported adjusted EPS of $0.29, ahead of the $0.27 consensus, while revenue reached $696.06 million versus expectations of $664.66 million. The revenue beat indicates continued demand for the company’s connectivity, security and developer services. Cloudflare Stock Pops on Q2 Earnings Print
• Positive Sentiment: Third-quarter guidance was well above consensus. Cloudflare forecast EPS of $0.34 and revenue of $736 million to $737 million, compared with analyst estimates of $0.26 and $722.4 million, respectively. The outlook suggests management expects momentum to continue and may help support the company’s growth premium. Cloudflare Q2 Earnings and Guidance
• Positive Sentiment: AI product expansion adds to the growth story. Cloudflare launched an AEO Visibility Dashboard that shows whether AI assistants recommend a customer’s business. The company also recently introduced Identity-Aware AI Gateway and Cloudflare OS, expanding its opportunity in AI security, governance and enterprise infrastructure. Cloudflare Adds AEO Visibility Dashboard
• Neutral Sentiment: Profitability remains a consideration. Despite the adjusted EPS beat, Cloudflare continues to report a negative net margin and negative return on equity. Investors will likely focus on whether strong revenue growth translates into sustained GAAP profitability and cash-flow improvement.
• Negative Sentiment: Valuation and insider selling remain risks. Cloudflare’s market capitalization and valuation multiples leave limited room for weaker growth or disappointing guidance. CEO Matthew Prince also sold multiple blocks of shares totaling tens of millions of dollars under pre-arranged Rule 10b5-1 plans. While scheduled sales do not necessarily signal deteriorating fundamentals, they may temper sentiment. Cloudflare CEO Stock Sale

Institutional Investors Weigh In On Cloudflare

Large investors have recently added to or reduced their stakes in the stock. HM Payson & Co. bought a new position in shares of Cloudflare in the 4th quarter worth approximately $25,000. Wiser Advisor Group LLC bought a new position in Cloudflare in the third quarter worth approximately $26,000. Wexford Capital LP purchased a new position in shares of Cloudflare during the 3rd quarter worth $30,000. Brown Brothers Harriman & Co. boosted its stake in shares of Cloudflare by 55.4% during the 3rd quarter. Brown Brothers Harriman & Co. now owns 157 shares of the company’s stock worth $34,000 after acquiring an additional 56 shares during the last quarter. Finally, JPL Wealth Management LLC bought a new stake in shares of Cloudflare during the 3rd quarter valued at $45,000. Institutional investors 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.