Cloudflare (NYSE:NET) Updates FY 2026 Earnings Guidance

Cloudflare (NYSE:NET) updated its FY 2026 earnings guidance on Thursday. 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.

Cloudflare Trading Down 3.3%

Cloudflare stock traded down $9.63 during trading hours on Thursday, hitting $283.33. The stock had a trading volume of 5,482,078 shares, compared to its average volume of 3,075,594. The business’s 50 day simple moving average is $255.83 and its 200-day simple moving average is $218.26. Cloudflare has a one year low of $158.83 and a one year high of $305.00. The stock has a market cap of $100.15 billion, a price-to-earnings ratio of -1,133.31, a P/E/G ratio of 219.10 and a beta of 1.65. The company has a quick ratio of 1.96, a current ratio of 1.96 and a debt-to-equity ratio of 1.29.

Cloudflare (NYSE:NET) last released its quarterly earnings results on Thursday, August 6th. The company reported $0.29 earnings per share 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 company had revenue of $696.06 million for the quarter, compared to analysts’ expectations of $664.66 million. During the same period in the previous year, the business posted $0.21 earnings per share. The business’s quarterly revenue was up 35.9% compared to the same quarter last year. Cloudflare has set its Q3 2026 guidance at 0.340-0.340 EPS and its FY 2026 guidance at 1.250-1.260 EPS. On average, equities analysts predict that Cloudflare will post 0.03 EPS for the current fiscal year.

Analyst Ratings Changes

A number of research firms have weighed in on NET. Truist Financial boosted their target price on shares of Cloudflare from $250.00 to $300.00 and gave the stock a “buy” rating in a report on Tuesday, July 21st. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Cloudflare in a research note on Friday, July 17th. Susquehanna increased their target price on shares of Cloudflare from $190.00 to $200.00 and gave the company a “neutral” rating in a research report on Monday, May 11th. Scotiabank upgraded shares of Cloudflare from a “sector perform” rating to a “sector outperform” rating and raised their price target for the stock from $225.00 to $300.00 in a report on Tuesday, July 7th. Finally, Guggenheim restated a “sell” rating and issued a $140.00 price target on shares of Cloudflare in a research report on Wednesday, June 10th. Two research analysts have rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating, six have issued a Hold rating and four have given a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $265.27.

Insiders Place Their Bets

In related news, insider Michelle Zatlyn sold 35,080 shares of the 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 directly owned 47,425 shares of the company’s stock, valued at $10,148,001.50. This represents a 42.52% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Thomas J. Seifert sold 55,000 shares of the firm’s stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $300.30, for a total transaction of $16,516,500.00. Following the completion of the sale, the chief financial officer owned 113,790 shares of the company’s stock, valued at $34,171,137. The trade was a 32.58% 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. In the last three months, insiders have sold 749,532 shares of company stock worth $183,882,628. Corporate insiders own 10.66% of the company’s stock.

Key Cloudflare News

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Cloudflare beat second-quarter expectations. The company reported adjusted EPS of $0.29 versus the $0.27 consensus and revenue of $696.06 million versus estimates of approximately $664.7 million. Revenue increased 35.9% year over year, reinforcing demand for Cloudflare’s connectivity, security and developer products. Cloudflare Q2 earnings report
• Positive Sentiment: Management raised its outlook above Wall Street forecasts. Full-year 2026 EPS guidance increased to $1.25-$1.26, compared with consensus of $0.96, while revenue guidance was set at approximately $2.9 billion versus expectations of $2.8 billion. Third-quarter guidance also exceeded estimates, with EPS of $0.34 and revenue of $736-$737 million. Cloudflare raises annual outlook
• Positive Sentiment: AI demand is becoming a major growth driver. Cloudflare cited rising AI-agent traffic across its network and launched tools including an AEO Visibility Dashboard, Identity-Aware AI Gateway and Cloudflare OS. These offerings could expand its enterprise security, AI infrastructure and developer-platform markets. Cloudflare AEO Visibility Dashboard
• Neutral Sentiment: Analyst reaction is mixed. Jefferies maintained a Hold rating, while broader coverage remains generally favorable. The stock’s high beta and sharp recent rally may be contributing to profit-taking even after the earnings beat.
• Negative Sentiment: Insider selling may weigh on sentiment. CEO Matthew Prince sold more than $45 million of shares across multiple transactions, and director Carl Ledbetter sold 5,000 shares for about $1.4 million. The transactions were conducted under pre-arranged Rule 10b5-1 plans, limiting their value as a signal about business prospects, but they can still pressure investor sentiment. SEC insider filing
• Negative Sentiment: Valuation remains a key risk. With Cloudflare valued at roughly $100 billion and still reporting a negative net margin, investors may demand continued acceleration in growth, profitability and cash flow. Any guidance or AI-demand disappointment could trigger further volatility.

Institutional Trading of Cloudflare

Several large investors have recently made changes to their positions in NET. Empowered Funds LLC increased its holdings in shares of Cloudflare by 34.2% during the first 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 bought a new position in shares of Cloudflare in the 2nd quarter worth $424,000. Cerity Partners LLC grew its position in Cloudflare by 30.1% in the 2nd 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 during the period. Sei Investments Co. grew its position in Cloudflare by 40.1% in the 2nd quarter. Sei Investments Co. now owns 329,036 shares of the company’s stock valued at $64,432,000 after purchasing an additional 94,112 shares during the period. Finally, The Manufacturers Life Insurance Company increased its stake in Cloudflare by 14.6% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 16,461 shares of the company’s stock valued at $3,224,000 after purchasing an additional 2,093 shares in the last quarter. 82.68% of the stock is currently owned by institutional investors and hedge funds.

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.