Cloudflare (NYSE:NET) Issues FY 2026 Earnings Guidance

Cloudflare (NYSE:NET) updated its FY 2026 earnings guidance on Thursday morning. The company provided EPS guidance of 1.250-1.260 for the period, compared to the consensus 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.

Analyst Ratings Changes

NET has been the subject of several research analyst reports. 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. Mizuho increased their target price on shares of Cloudflare from $260.00 to $310.00 and gave the stock an “outperform” rating in a report on Wednesday, July 15th. KeyCorp restated an “overweight” rating on shares of Cloudflare in a research report on Friday. Sanford C. Bernstein reaffirmed a “market perform” rating and issued a $136.00 price target on shares of Cloudflare in a report on Wednesday, June 10th. Finally, Needham & Company LLC raised their target price on shares of Cloudflare from $250.00 to $280.00 and gave the stock a “buy” rating in a report on Wednesday, June 10th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating, six have given a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat, Cloudflare presently has a consensus rating of “Moderate Buy” and a consensus target price of $272.31.

Cloudflare Stock Down 3.3%

Cloudflare stock opened at $283.33 on Friday. The firm’s 50 day moving average price is $255.83 and its two-hundred day moving average price is $218.26. The firm has a market cap of $100.15 billion, a PE ratio of -1,133.31, a P/E/G ratio of 219.10 and a beta of 1.65. Cloudflare has a twelve month low of $158.83 and a twelve month high of $305.00. The company has a debt-to-equity ratio of 1.29, a quick ratio of 1.96 and a current ratio of 1.96.

Cloudflare (NYSE:NET) last announced its quarterly earnings data on Wednesday, August 5th. The company reported $0.29 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.27 by $0.02. Cloudflare had a negative return on equity of 5.65% and a negative net margin of 3.72%.The business had revenue of $696.06 million during the quarter, compared to analyst estimates of $664.66 million. During the same period last year, the company earned $0.21 earnings per share. Cloudflare’s quarterly revenue was up 35.9% compared to the same quarter last year. On average, research analysts predict that Cloudflare will post 0.03 EPS for the current fiscal year.

Insider Transactions at Cloudflare

In other Cloudflare news, CEO Matthew Prince sold 52,422 shares of Cloudflare stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $249.09, for a total value of $13,057,795.98. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Michelle Zatlyn sold 35,080 shares of the company’s stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $213.98, for a total transaction of $7,506,418.40. Following the transaction, the insider owned 47,425 shares of the company’s stock, valued at approximately $10,148,001.50. The trade was a 42.52% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 749,532 shares of company stock worth $183,882,628. Company insiders own 10.66% of the company’s stock.

More Cloudflare News

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Quarterly results exceeded expectations. Cloudflare reported adjusted earnings of $0.29 per share versus the $0.27 consensus, while revenue rose 35.9% year over year to $696.1 million, ahead of estimates near $664.7 million. Cloudflare Q2 2026 results
• Positive Sentiment: Cloudflare raised guidance above analyst forecasts. Full-year revenue guidance increased to approximately $2.86 billion-$2.87 billion from $2.805 billion-$2.813 billion previously, above the roughly $2.81 billion consensus. The company also projected third-quarter revenue of $736 million-$737 million and EPS of $0.34, both ahead of expectations. Cloudflare raises annual outlook
• Positive Sentiment: AI adoption is boosting demand. Management said the rapid growth of AI agents is driving traffic through Cloudflare’s network. New offerings—including the AEO Visibility Dashboard, Identity-Aware AI Gateway and Cloudflare OS—could expand enterprise demand for AI security, governance and infrastructure services. Cloudflare AI-driven demand
• Neutral Sentiment: Analyst views remain mixed. Jefferies maintained a Hold rating, although the broader analyst consensus is Moderate Buy. Cloudflare’s shares remain near their 52-week high, increasing the market’s focus on execution and additional guidance upgrades.
• Negative Sentiment: Insider selling could temper sentiment. CEO Matthew Prince sold more than $45 million of shares in several transactions, CFO Thomas Seifert sold 55,000 shares, and director Carl Ledbetter sold 5,000 shares. The transactions were made under pre-arranged Rule 10b5-1 plans and therefore are not necessarily indications of weakening business confidence, but they may encourage profit-taking. Cloudflare insider sales
• Negative Sentiment: Valuation remains elevated. Cloudflare’s approximately $100 billion market capitalization and continuing negative net margin leave limited room for disappointing growth, profitability or AI-demand trends. The stock’s high beta also suggests continued volatility.

Institutional Investors Weigh In On Cloudflare

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. First Trust Advisors LP increased its stake in shares of Cloudflare by 1.6% in the 4th quarter. First Trust Advisors LP now owns 4,019,157 shares of the company’s stock valued at $792,377,000 after acquiring an additional 63,198 shares during the last quarter. Invesco Ltd. boosted its stake in Cloudflare by 1.3% during the 3rd quarter. Invesco Ltd. now owns 3,964,733 shares of the company’s stock worth $850,792,000 after acquiring an additional 49,485 shares during the last quarter. Northern Trust Corp grew its holdings in Cloudflare by 3.3% during the fourth quarter. Northern Trust Corp now owns 1,971,595 shares of the company’s stock valued at $388,700,000 after purchasing an additional 62,475 shares during the period. Charles Schwab Investment Management Inc. increased its stake in Cloudflare by 4.4% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 1,531,220 shares of the company’s stock valued at $301,880,000 after purchasing an additional 64,678 shares in the last quarter. Finally, Nuveen LLC raised its holdings in Cloudflare by 1.8% in the fourth quarter. Nuveen LLC now owns 725,008 shares of the company’s stock worth $142,935,000 after purchasing an additional 12,905 shares during the period. Institutional investors and hedge funds 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.