Cloudflare (NYSE:NET – Get Free Report) issued an update on its fourth quarter 2026 earnings guidance on Friday. The company provided earnings per share guidance of 0.430-0.430 for the period, compared to the consensus EPS estimate of 0.310. The company issued revenue guidance of $845.0 million-$846.0 million, compared to the consensus revenue estimate of $797.9 million. Cloudflare also updated its FY 2026 guidance to 1.350-1.350 EPS.
Wall Street Analysts Forecast Growth
Several equities analysts have commented on NET shares. Scotiabank increased their price target on Cloudflare from $300.00 to $390.00 and gave the company an “outperform” rating in a report on Friday, August 7th. Wolfe Research upgraded shares of Cloudflare from a “peer perform” rating to an “outperform” rating in a research note on Friday. Jefferies Financial Group set a $315.00 price objective on shares of Cloudflare and gave the stock a “hold” rating in a report on Friday. Barclays raised their target price on shares of Cloudflare from $355.00 to $400.00 and gave the company an “overweight” rating in a research note on Monday, October 12th. Finally, Morgan Stanley began coverage on shares of Cloudflare in a report on Tuesday. They issued an “overweight” rating on the stock. Twenty-six investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $333.89.
Read Our Latest Stock Analysis on Cloudflare
Cloudflare Stock Performance
NYSE:NET traded up $27.80 during mid-day trading on Friday, hitting $272.31. 5,888,459 shares of the company’s stock traded hands, compared to its average volume of 4,055,993. The firm has a market capitalization of $96.25 billion, a price-to-earnings ratio of -469.50, a price-to-earnings-growth ratio of 206.44 and a beta of 1.37. The firm has a 50 day moving average of $319.02 and a two-hundred day moving average of $249.31. The company has a current ratio of 1.82, a quick ratio of 1.82 and a debt-to-equity ratio of 1.22. Cloudflare has a 12 month low of $158.83 and a 12 month high of $370.35.
Cloudflare (NYSE:NET – Get Free Report) last issued its quarterly earnings results on Thursday, November 5th. The company reported $0.38 EPS for the quarter, topping the consensus estimate of $0.34 by $0.04. Cloudflare had a negative return on equity of 3.88% and a negative net margin of 8.21%. The company had revenue of $782.51 million for the quarter, compared to the consensus estimate of $737.16 million. During the same period in the previous year, the business posted $0.27 EPS. The company’s revenue for the quarter was up 39.2% on a year-over-year basis. On average, equities analysts forecast that Cloudflare will post 0.03 earnings per share for the current fiscal year.
Insider Transactions at Cloudflare
In related news, CFO Thomas J. Seifert sold 12,500 shares of the company’s stock in a transaction on Monday, October 19th. The shares were sold at an average price of $299.59, for a total transaction of $3,744,875.00. Following the completion of the transaction, the chief financial officer directly owned 104,958 shares in the company, valued at $31,444,367.22. This represents a 10.64% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Michelle Zatlyn sold 33,003 shares of the stock in a transaction on Wednesday, October 7th. The shares were sold at an average price of $348.29, for a total transaction of $11,494,614.87. Following the completion of the sale, the insider directly owned 69,775 shares of the company’s stock, valued at approximately $24,301,934.75. This trade represents a 32.11% 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. Over the last quarter, insiders have sold 259,057 shares of company stock worth $79,516,905. Insiders own 10.66% of the company’s stock.
Cloudflare News Roundup
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.
Read More
- Five stocks we like better than Cloudflare
- CVS Raised Its Outlook and Announced a Breakup—So Why Did the Stock Drop?
- Array and Shoals Are Merging: Who Really Wins the All-Stock Solar Deal?
- Duolingo’s User Growth Is Outpacing Bookings, But Is Its Strategy Paying Off?
- Block by Block: Cash App Builds a Stronger Foundation
Receive News & Ratings for Cloudflare Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Cloudflare and related companies with MarketBeat.com's FREE daily email newsletter.
