Cloudflare (NYSE:NET) Releases FY 2026 Earnings Guidance

Cloudflare (NYSE:NET) issued an update on its FY 2026 earnings guidance on Friday. The company provided earnings per share (EPS) guidance of 1.350-1.350 for the period, compared to the consensus estimate of 1.020. The company issued revenue guidance of $3.0 billion, compared to the consensus revenue estimate of $2.9 billion. Cloudflare also updated its Q4 2026 guidance to 0.430-0.430 EPS.

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on NET. BTIG Research boosted their price objective on Cloudflare from $382.00 to $413.00 and gave the company a “buy” rating in a report on Tuesday, October 6th. Wells Fargo & Company upped their target price on shares of Cloudflare from $380.00 to $400.00 and gave the stock an “overweight” rating in a report on Wednesday, October 28th. The Goldman Sachs Group set a $420.00 target price on Cloudflare and gave the stock a “buy” rating in a report on Friday. Stephens initiated coverage on shares of Cloudflare in a report on Tuesday. They issued an “overweight” rating for the company. Finally, Cantor Fitzgerald reduced their target price on shares of Cloudflare from $340.00 to $310.00 and set a “neutral” rating on the stock in a research note on Friday. Twenty-six analysts have rated the stock with a Buy rating, seven have issued a Hold rating and four have issued a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $333.89.

Cloudflare Stock Performance

Cloudflare stock traded up $27.80 during mid-day trading on Friday, reaching $272.31. 5,888,459 shares of the company were exchanged, compared to its average volume of 4,055,993. Cloudflare has a twelve month low of $158.83 and a twelve month high of $370.35. The company has a debt-to-equity ratio of 1.22, a quick ratio of 1.82 and a current ratio of 1.82. The firm’s 50-day simple moving average is $319.02 and its two-hundred day simple moving average is $249.31. The firm has a market cap of $96.25 billion, a PE ratio of -469.50, a price-to-earnings-growth ratio of 206.44 and a beta of 1.37.

Cloudflare (NYSE:NET) last announced its quarterly earnings results on Thursday, November 5th. The company reported $0.38 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.34 by $0.04. The firm had revenue of $782.51 million during the quarter, compared to the consensus estimate of $737.16 million. Cloudflare had a negative return on equity of 3.88% and a negative net margin of 8.21%. The firm’s quarterly revenue was up 39.2% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.27 EPS. Equities analysts predict that Cloudflare will post 0.03 earnings per share for the current fiscal year.

Insider Transactions at Cloudflare

In other news, insider Michelle Zatlyn sold 33,003 shares of Cloudflare stock in a transaction that occurred on Wednesday, October 7th. The stock was sold at an average price of $348.29, for a total transaction of $11,494,614.87. Following the sale, the insider owned 69,775 shares of the company’s stock, valued at approximately $24,301,934.75. The trade was a 32.11% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Thomas J. Seifert sold 12,500 shares of the stock in a transaction that occurred on Monday, October 19th. The stock was sold at an average price of $299.59, for a total value of $3,744,875.00. Following the completion of the transaction, the chief financial officer directly owned 104,958 shares of the company’s stock, valued at $31,444,367.22. This trade represents a 10.64% 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 ninety days, insiders have sold 259,057 shares of company stock worth $79,516,905. 10.66% of the stock is currently owned by company insiders.

Key Stories Impacting Cloudflare

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Q3 revenue rose 39.2% year over year to $782.5 million, topping expectations, while adjusted EPS of $0.38 also beat estimates. Why Cloudflare Stock Opened Higher Today
• Positive Sentiment: Management issued Q4 guidance well above consensus: revenue of $845–$846 million versus about $798 million expected, and EPS of $0.43 versus $0.31. Its FY 2026 outlook also increased to roughly $3.0 billion in revenue and $1.35 EPS, both ahead of analyst expectations. Cloudflare Q3 Earnings Beat Estimates
• Positive Sentiment: Enterprise adoption and AI platform usage were key growth drivers. Cloudflare doubled its active developer base to 10 million and reported its first revenue from AI bot traffic, supporting the case for continued demand for its platform. Why Cloudflare Stock Opened Higher Today
• Positive Sentiment: Wolfe Research upgraded NET to “outperform,” while Piper Sandler reaffirmed “overweight” and raised its price target to $337. Wolfe Research rating
• Neutral Sentiment: Analyst views were mixed: Needham lowered its target but maintained a “buy” rating, while Cantor Fitzgerald cut its target and kept a “neutral” rating. Cantor Fitzgerald rating
• Negative Sentiment: Gross margin pressure, slower growth in free cash flow than revenue, and a wider GAAP operating loss temper the upbeat growth story. Cloudflare Sales Up 39%, Gross Margin Falls
• Negative Sentiment: Cloudflare’s high valuation leaves little room for execution misses, and broader technology-sector selling recently pressured the shares despite strong company results. Cloudflare Just Had Its Best Quarter Ever

About Cloudflare

Cloudflare, Inc provides cloud-based services that help businesses and other organizations protect, connect and improve the performance of websites, applications and networks. Its global network delivers services including content delivery, domain name system management, and protection against distributed denial-of-service attacks and other cyber threats.

The company also offers web application security, bot management and Zero Trust services for securing access to applications and internal networks.