Cloudflare (NYSE:NET) Issues FY 2026 Earnings Guidance

Cloudflare (NYSE:NET) updated its FY 2026 earnings guidance on Thursday. The company provided earnings per share (EPS) guidance of 1.190-1.200 for the period, compared to the consensus estimate of 0.880. The company issued revenue guidance of $2.8 billion-$2.8 billion, compared to the consensus revenue estimate of $2.8 billion. Cloudflare also updated its Q2 2026 guidance to 0.270-0.270 EPS.

Analysts Set New Price Targets

A number of equities analysts recently commented on the company. Weiss Ratings reiterated a “sell (d-)” rating on shares of Cloudflare in a research note on Monday, April 20th. Truist Financial set a $225.00 target price on Cloudflare in a report on Tuesday, January 20th. Wells Fargo & Company lifted their target price on Cloudflare from $265.00 to $270.00 and gave the stock an “overweight” rating in a research report on Wednesday, February 11th. TD Cowen reiterated a “buy” rating on shares of Cloudflare in a report on Tuesday, January 27th. Finally, Zacks Research raised Cloudflare from a “strong sell” rating to a “hold” rating in a research report on Friday, March 13th. Nineteen equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat.com, Cloudflare has a consensus rating of “Moderate Buy” and a consensus price target of $233.12.

Cloudflare Stock Performance

Shares of NYSE NET opened at $196.56 on Friday. The company has a quick ratio of 1.98, a current ratio of 1.98 and a debt-to-equity ratio of 1.35. The firm’s 50-day moving average price is $204.88 and its two-hundred day moving average price is $200.83. Cloudflare has a 52-week low of $130.20 and a 52-week high of $260.00. The stock has a market capitalization of $69.18 billion, a P/E ratio of -786.22 and a beta of 1.67.

Cloudflare (NYSE:NET) last posted its earnings results on Thursday, May 7th. The company reported $0.25 EPS for the quarter, beating the consensus estimate of $0.23 by $0.02. The company had revenue of $639.76 million during the quarter, compared to analyst estimates of $620.83 million. Cloudflare had a negative return on equity of 5.84% and a negative net margin of 3.72%.The business’s revenue was up 33.5% compared to the same quarter last year. During the same period in the prior year, the company earned $0.16 earnings per share. Cloudflare has set its FY 2026 guidance at 1.190-1.200 EPS and its Q2 2026 guidance at 0.270-0.270 EPS. As a group, sell-side analysts forecast that Cloudflare will post -0.11 earnings per share for the current year.

Insider Buying and Selling

In other Cloudflare news, CFO Thomas J. Seifert sold 41,557 shares of the business’s stock in a transaction dated Friday, February 20th. The shares were sold at an average price of $185.04, for a total transaction of $7,689,707.28. Following the completion of the transaction, the chief financial officer directly owned 85,452 shares of the company’s stock, valued at $15,812,038.08. The trade was a 32.72% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Michelle Zatlyn sold 35,080 shares of the company’s stock in a transaction dated Thursday, February 19th. The stock was sold at an average price of $187.39, for a total transaction of $6,573,641.20. Following the completion of the transaction, the insider owned 34,514 shares of the company’s stock, valued at approximately $6,467,578.46. This trade represents a 50.41% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 638,766 shares of company stock worth $125,757,221 in the last three months. 10.89% of the stock is owned by insiders.

More Cloudflare News

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Cloudflare reported first-quarter EPS of $0.25 and revenue of about $639.8 million, both above Wall Street expectations, with revenue up 33.5% year over year. Article Title
• Positive Sentiment: The company lifted its full-year 2026 outlook, signaling continued confidence in longer-term demand despite the post-earnings drop. Article Title
• Neutral Sentiment: Piper Sandler raised its price target to $250 and kept an Overweight rating, suggesting some analysts still see upside after the pullback. Article Title
• Neutral Sentiment: Cloudflare also highlighted AI as a major long-term growth driver and said it is shifting toward an AI-first operating model, which could improve efficiency over time. Article Title
• Negative Sentiment: The company said it will cut about 1,100 jobs, or roughly 20% of its workforce, as it restructures around AI, raising concerns about disruption and execution risk. Article Title
• Negative Sentiment: Investors were disappointed that Cloudflare’s near-term revenue guidance came in just below expectations, fueling fears that growth may slow as AI infrastructure costs pressure margins. Article Title

Hedge Funds Weigh In On Cloudflare

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Wiser Advisor Group LLC bought a new stake in Cloudflare during the 3rd quarter valued at $26,000. HM Payson & Co. bought a new position in shares of Cloudflare in the fourth quarter worth $25,000. Wexford Capital LP acquired a new position in shares of Cloudflare during the third quarter valued at $30,000. Brown Brothers Harriman & Co. increased its holdings in shares of Cloudflare by 55.4% during the third quarter. Brown Brothers Harriman & Co. now owns 157 shares of the company’s stock valued at $34,000 after purchasing an additional 56 shares during the period. Finally, JPL Wealth Management LLC bought a new stake in shares of Cloudflare during the third quarter valued at about $45,000. 82.68% of the stock is owned by 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.