Cloudflare (NYSE:NET) Posts Quarterly Earnings Results, Beats Estimates By $0.02 EPS

Cloudflare (NYSE:NET) issued its quarterly earnings results on Wednesday. The company reported $0.29 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.27 by $0.02, FiscalAI reports. The business had revenue of $696.06 million during the quarter, compared to analyst estimates of $664.66 million. Cloudflare had a negative net margin of 3.72% and a negative return on equity of 5.65%. The business’s revenue was up 35.9% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.21 earnings per share.

Cloudflare Stock Performance

NET stock traded up $21.43 during mid-day trading on Friday, reaching $305.86. The company had a trading volume of 5,678,542 shares, compared to its average volume of 4,316,943. Cloudflare has a one year low of $158.83 and a one year high of $324.73. The stock has a market capitalization of $108.11 billion, a P/E ratio of -1,221.53, a P/E/G ratio of 219.10 and a beta of 1.65. The company has a quick ratio of 1.96, a current ratio of 1.96 and a debt-to-equity ratio of 1.29. The stock’s 50-day simple moving average is $255.83 and its two-hundred day simple moving average is $218.26.

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on NET shares. Citigroup reissued a “market outperform” rating on shares of Cloudflare in a research report on Monday, July 20th. TD Cowen reiterated a “buy” rating on shares of Cloudflare in a research note on Friday. Barclays boosted their price objective on Cloudflare from $300.00 to $355.00 and gave the company an “overweight” rating in a report on Friday. New Street Research reaffirmed a “market outperform” rating on shares of Cloudflare in a report on Monday, June 15th. Finally, Needham & Company LLC lifted their target price on Cloudflare from $280.00 to $380.00 and gave the stock a “buy” rating in a research report on Friday. Two investment analysts have rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating, six have issued a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $304.30.

Insider Buying and Selling at Cloudflare

In related news, insider Michelle Zatlyn sold 35,080 shares of the firm’s stock in a transaction that occurred 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 sale, the insider directly owned 47,425 shares in the company, valued at $10,148,001.50. This trade represents a 42.52% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Matthew Prince sold 52,422 shares of the business’s stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $249.09, for a total value of $13,057,795.98. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 749,532 shares of company stock valued at $183,882,628 in the last ninety days. Company insiders own 10.66% of the company’s stock.

Hedge Funds Weigh In On Cloudflare

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

Key Cloudflare News

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Cloudflare exceeded expectations on both revenue and earnings. Second-quarter revenue rose 35.9% year over year to $696.1 million, above the roughly $664.7 million consensus, while adjusted EPS of $0.29 topped estimates of $0.27. Cloudflare Stock Pops After Strong Q2 Results
• Positive Sentiment: Management raised its outlook above Wall Street forecasts. Full-year 2026 revenue guidance increased to approximately $2.864 billion-$2.870 billion, from $2.805 billion-$2.813 billion previously, while EPS guidance rose to $1.25-$1.26 versus consensus of $0.96. Third-quarter revenue and EPS guidance also exceeded estimates. Cloudflare raises annual outlook
• Positive Sentiment: AI-related demand is strengthening the growth narrative. Cloudflare said Workers, large-customer additions and rising traffic from agentic AI are supporting momentum. New products, including an AEO Visibility Dashboard, Identity-Aware AI Gateway and Cloudflare OS, could expand its enterprise security and AI-platform opportunities. NET Q2 Earnings Call Highlights
• Positive Sentiment: Analysts raised price targets following the results. BTIG, Needham and Oppenheimer lifted their targets to $382, $380 and $380, respectively, and maintained buy or outperform ratings. Truist also raised its target to $350 and retained a buy rating. Cloudflare analyst price-target changes
• Neutral Sentiment: Usage-based revenue can create quarter-to-quarter variability. Management noted that evolving customer usage models may make reported revenue less predictable, even as underlying demand remains strong.
• Negative Sentiment: Valuation and insider selling remain risks. Cloudflare’s roughly $100 billion-plus valuation and still-negative net margin leave limited room for execution missteps. CEO Matthew Prince, CFO Thomas Seifert and director Carl Ledbetter recently sold shares under pre-arranged Rule 10b5-1 plans; these sales are not necessarily bearish but may temper sentiment after the rally.

Cloudflare Company Profile

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.