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 EPS 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.

Analysts Set New Price Targets

NET has been the subject of a number of research reports. KeyCorp increased their price target on Cloudflare from $300.00 to $375.00 and gave the company an “overweight” rating in a research note on Friday. UBS Group increased their target price on Cloudflare from $250.00 to $350.00 and gave the company a “neutral” rating in a research report on Friday. Needham & Company LLC lifted their price target on Cloudflare from $280.00 to $380.00 and gave the company a “buy” rating in a research note on Friday. Guggenheim boosted their price target on Cloudflare from $140.00 to $160.00 and gave the stock a “sell” rating in a report on Friday. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Cloudflare in a research note on Friday, July 17th. Two research analysts have rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating, six have assigned a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $311.48.

Cloudflare Trading Up 5.8%

NET opened at $301.00 on Friday. The company has a fifty day moving average price of $257.02 and a two-hundred day moving average price of $218.84. Cloudflare has a 1-year low of $158.83 and a 1-year high of $324.73. The company has a market cap of $106.39 billion, a P/E ratio of -518.96, a price-to-earnings-growth ratio of 212.72 and a beta of 1.65. The company has a current ratio of 1.96, a quick ratio of 1.96 and a debt-to-equity ratio of 1.29.

Cloudflare (NYSE:NET) last released its quarterly earnings data on Wednesday, August 5th. The company reported $0.29 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.27 by $0.02. The company had revenue of $696.06 million for the quarter, compared to analysts’ expectations of $664.66 million. Cloudflare had a negative net margin of 8.21% and a negative return on equity of 3.99%. The business’s revenue was up 35.9% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.21 EPS. Analysts predict that Cloudflare will post 0.03 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CEO Matthew Prince sold 52,422 shares of the company’s stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $249.09, for a total transaction of $13,057,795.98. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Michelle Zatlyn sold 35,080 shares of the stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $213.98, for a total value of $7,506,418.40. Following the completion of the transaction, the insider owned 47,425 shares in the company, valued at approximately $10,148,001.50. This represents a 42.52% 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. Over the last quarter, insiders have sold 749,532 shares of company stock worth $183,882,628. Corporate insiders own 10.66% of the company’s stock.

More Cloudflare News

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Q2 results beat expectations. Revenue rose 35.9% year over year to $696.1 million, exceeding the approximately $664.7 million consensus estimate. Adjusted EPS was $0.29 versus expectations of $0.27, supported by large-customer additions, Workers adoption and improved execution. Cloudflare Q2 earnings report
• Positive Sentiment: Cloudflare raised its forecast. Third-quarter guidance calls for approximately $736 million-$737 million in revenue and $0.34 EPS, above analyst estimates. Full-year 2026 revenue guidance was lifted to roughly $2.864 billion-$2.870 billion, while EPS guidance increased to $1.25-$1.26. Management cited resilient AI-agent demand across its network. Reuters outlook report
• Positive Sentiment: Analysts responded with higher targets. Citizens JMP raised its target to $394, while Oppenheimer and Needham increased targets to $380. BTIG, RBC, Piper Sandler and Truist also raised targets and maintained bullish ratings, signaling confidence in Cloudflare’s AI growth opportunity.
• Positive Sentiment: New AI products add potential growth avenues. Cloudflare launched Kitesurf, a cloud-hosted browser designed for AI agents, and an AEO Visibility Dashboard that helps brands track recommendations from AI assistants. TechCrunch Kitesurf report
• Neutral Sentiment: Valuation and volatility remain elevated. The rally has pushed Cloudflare near record levels, leaving the stock dependent on continued high growth, margin improvement and successful AI monetization.
• Negative Sentiment: Insider selling is a modest sentiment risk. CEO Matthew Prince, CFO Thomas Seifert and director Carl Ledbetter sold shares under pre-arranged Rule 10b5-1 plans. These transactions may concern investors but do not necessarily indicate weakening business fundamentals.

Hedge Funds Weigh In On Cloudflare

Large investors have recently made changes to their positions in the business. Brown Brothers Harriman & Co. raised its position in shares of Cloudflare by 55.4% in the third 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 period. Wealthedge Investment Advisors LLC grew its position in shares of Cloudflare by 1.3% during the 4th quarter. Wealthedge Investment Advisors LLC now owns 5,989 shares of the company’s stock valued at $1,181,000 after acquiring an additional 79 shares during the period. Orion Porfolio Solutions LLC grew its position in shares of Cloudflare by 0.4% during the 4th quarter. Orion Porfolio Solutions LLC now owns 21,297 shares of the company’s stock valued at $4,199,000 after acquiring an additional 95 shares during the period. L2 Asset Management LLC increased its stake in shares of Cloudflare by 8.1% in the 4th quarter. L2 Asset Management LLC now owns 1,474 shares of the company’s stock valued at $291,000 after purchasing an additional 110 shares in the last quarter. Finally, Wiser Advisor Group LLC acquired a new stake in Cloudflare in the 3rd quarter valued at $26,000. 82.68% of the stock is currently owned by hedge funds and other institutional investors.

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.