Cloudflare (NYSE:NET) Releases Quarterly Earnings Results

Posted by George Bondi on Aug 7th, 2026

Cloudflare (NYSE:NET – Get Free Report) released its quarterly earnings results on Thursday. The company reported $0.29 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.27 by $0.02, FiscalAI reports. 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 3.72% and a negative return on equity of 5.65%. The firm’s revenue for the quarter was up 35.9% compared to the same quarter last year. During the same period last year, the company earned $0.21 EPS. Cloudflare updated its Q3 2026 guidance to 0.340-0.340 EPS and its FY 2026 guidance to 1.250-1.260 EPS.

Here are the key takeaways from Cloudflare’s conference call:

Q2 results exceeded expectations, with revenue rising 36% year over year to $696.1 million, operating income reaching $96.1 million, and free cash flow increasing 69% to $56.4 million.
Enterprise momentum accelerated, with large customers up 27% year over year to 4,698, dollar-based net retention reaching 120%, and record additions across every major customer spending tier.
Cloudflare’s Workers developer platform and agentic AI strategy are gaining traction, with the developer base surpassing 7.4 million and the company stating that Workers has become a meaningful revenue contributor alongside strong adoption of pool-of-funds contracts.
Management raised confidence in its outlook, guiding for third-quarter revenue of $736 million–$737 million and full-year revenue of $2.864 billion–$2.870 billion, while saying it is pacing ahead of its goal to reach GAAP profitability by the end of 2028.
Gross margin declined 320 basis points year over year to 73.1%, while full-year restructuring charges are now expected to reach up to $165 million, including up to $130 million in cash costs.

Cloudflare Trading Down 3.3%

Shares of NET 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. Cloudflare has a 12-month low of $158.83 and a 12-month high of $305.00. The firm has a market cap of $100.15 billion, a P/E ratio of -1,133.31, a P/E/G ratio of 219.10 and a beta of 1.65. The company has a debt-to-equity ratio of 1.29, a quick ratio of 1.96 and a current ratio of 1.96. The company’s fifty day simple moving average is $255.83 and its 200 day simple moving average is $218.26.

Insider Transactions at Cloudflare

In other Cloudflare news, CFO Thomas J. Seifert sold 55,000 shares of the company’s stock in a transaction dated 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 directly owned 113,790 shares in the company, valued at $34,171,137. This represents a 32.58% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark J. Hawkins sold 133 shares of the firm’s stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $277.74, for a total value of $36,939.42. Following the completion of the transaction, the director owned 10,632 shares in the company, valued at approximately $2,952,931.68. This trade represents a 1.24% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 749,532 shares of company stock worth $183,882,628 in the last three months. 10.66% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Cloudflare

Several institutional investors have recently bought and sold shares of the business. Sunbelt Securities Inc. boosted its position in Cloudflare by 18.4% during the 4th quarter. Sunbelt Securities Inc. now owns 1,409 shares of the company’s stock worth $278,000 after purchasing an additional 219 shares during the period. Strive Financial Group LLC acquired a new position in shares of Cloudflare during the fourth quarter worth about $50,000. Mercer Global Advisors Inc. ADV lifted its stake in shares of Cloudflare by 1.2% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 26,768 shares of the company’s stock worth $5,277,000 after purchasing an additional 313 shares in the last quarter. Virtue Capital Management LLC lifted its stake in shares of Cloudflare by 814.5% during the fourth quarter. Virtue Capital Management LLC now owns 7,746 shares of the company’s stock worth $1,518,000 after purchasing an additional 6,899 shares in the last quarter. Finally, Vident Advisory LLC boosted its position in shares of Cloudflare by 9.0% in the fourth quarter. Vident Advisory LLC now owns 13,869 shares of the company’s stock worth $2,734,000 after buying an additional 1,143 shares during the period. 82.68% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

NET has been the subject of several recent analyst reports. Benchmark cut shares of Cloudflare to an “underperform” rating in a research note on Tuesday, July 7th. Citizens Jmp lifted their price objective on Cloudflare from $270.00 to $330.00 and gave the company a “market outperform” rating in a research report on Monday, July 20th. Stifel Nicolaus set a $260.00 target price on Cloudflare in a research note on Friday, May 8th. UBS Group raised their price target on Cloudflare from $220.00 to $250.00 and gave the stock a “neutral” rating in a research note on Wednesday, June 10th. Finally, Susquehanna lifted their price target on Cloudflare from $190.00 to $200.00 and gave the company a “neutral” rating in a report on Monday, May 11th. Two equities 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 company’s stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $265.27.

Read Our Latest Report on NET

Trending Headlines about Cloudflare

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.

About Cloudflare

(Get Free Report)

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.

Earnings History for Cloudflare (NYSE:NET)

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