Cloudflare (NYSE:NET) Updates Q2 2026 Earnings Guidance

Cloudflare (NYSE:NET) issued an update on its second quarter 2026 earnings guidance on Thursday morning. The company provided earnings per share guidance of 0.270-0.270 for the period, compared to the consensus earnings per share estimate of 0.210. The company issued revenue guidance of $664.0 million-$665.0 million, compared to the consensus revenue estimate of $665.3 million. Cloudflare also updated its FY 2026 guidance to 1.190-1.200 EPS.

Analyst Ratings Changes

Several equities analysts recently weighed in on the stock. Wolfe Research reaffirmed a “peer perform” rating on shares of Cloudflare in a research report on Monday, January 26th. The Goldman Sachs Group downgraded shares of Cloudflare from a “buy” rating to a “sell” rating in a research report on Wednesday, April 15th. Cantor Fitzgerald restated a “neutral” rating and set a $224.00 price target on shares of Cloudflare in a report on Wednesday, February 11th. Truist Financial set a $225.00 price objective on shares of Cloudflare in a research note on Tuesday, January 20th. Finally, Scotiabank decreased their price objective on shares of Cloudflare from $255.00 to $225.00 and set a “sector perform” rating for the company in a report on Wednesday, February 11th. Nineteen equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and three have given a Sell rating to the company’s stock. Based on data from MarketBeat, Cloudflare has an average rating of “Moderate Buy” and a consensus price target of $233.12.

Cloudflare Stock Performance

Shares of NET opened at $196.56 on Friday. The company has a market capitalization of $69.18 billion, a PE ratio of -786.22 and a beta of 1.67. The company has a debt-to-equity ratio of 1.35, a current ratio of 1.98 and a quick ratio of 1.98. Cloudflare has a one year low of $130.20 and a one year high of $260.00. The company’s fifty day moving average price is $204.88 and its 200 day moving average price is $200.83.

Cloudflare (NYSE:NET) last released its quarterly earnings results on Thursday, May 7th. The company reported $0.25 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.23 by $0.02. The company had revenue of $639.76 million during the quarter, compared to analysts’ expectations of $620.83 million. Cloudflare had a negative net margin of 3.72% and a negative return on equity of 5.84%. The business’s quarterly 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, analysts expect that Cloudflare will post -0.11 earnings per share for the current year.

Insider Transactions at Cloudflare

In other Cloudflare news, insider Michelle Zatlyn sold 25,641 shares of the firm’s stock in a transaction that occurred on Wednesday, April 22nd. The stock was sold at an average price of $209.15, for a total value of $5,362,815.15. Following the sale, the insider owned 34,514 shares of the company’s stock, valued at $7,218,603.10. This trade represents a 42.62% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark J. Hawkins sold 133 shares of Cloudflare stock in a transaction that occurred on Friday, May 1st. The stock was sold at an average price of $211.62, for a total value of $28,145.46. Following the completion of the transaction, the director directly owned 10,189 shares in the company, valued at approximately $2,156,196.18. This represents a 1.29% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 638,766 shares of company stock worth $125,757,221. Insiders own 10.89% of the company’s stock.

Cloudflare News Summary

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

Institutional Trading of Cloudflare

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. First Trust Advisors LP increased its holdings in shares of Cloudflare by 1.6% during the 4th quarter. First Trust Advisors LP now owns 4,019,157 shares of the company’s stock worth $792,377,000 after purchasing an additional 63,198 shares during the period. Invesco Ltd. lifted its stake in shares of Cloudflare by 1.3% in the third quarter. Invesco Ltd. now owns 3,964,733 shares of the company’s stock valued at $850,792,000 after buying an additional 49,485 shares during the period. Northern Trust Corp lifted its stake in shares of Cloudflare by 3.3% in the fourth quarter. Northern Trust Corp now owns 1,971,595 shares of the company’s stock valued at $388,700,000 after buying an additional 62,475 shares during the period. Charles Schwab Investment Management Inc. grew its position in Cloudflare by 4.4% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 1,531,220 shares of the company’s stock worth $301,880,000 after buying an additional 64,678 shares in the last quarter. Finally, Nuveen LLC grew its position in Cloudflare by 1.8% during the fourth quarter. Nuveen LLC now owns 725,008 shares of the company’s stock worth $142,935,000 after buying an additional 12,905 shares in the last quarter. 82.68% of the stock is currently owned by institutional investors and hedge funds.

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.