Cloudflare Beats Q3, Cuts 20% of Workforce as Revenue Chief Anderson Exits
NET sits 76% above its 52-week low of $158.83 on elevated volume (2.6× avg).
Summary
Cloudflare beat on both lines for Q3: revenue of $782.5 million versus $738.5 million consensus, up 39% year over year, with adjusted EPS of $0.38. It raised its 2026 outlook and shares rose over 15% after hours. The bigger surprise is the operating model shift: the company says it has substantially completed a transition to an agentic AI-first model, including a roughly 20% workforce reduction. Revenue president Mark Anderson will leave at the end of 2026 and stay on as an adviser through December. This follows the 8-K and 10-Q filed last night, which also disclosed a Delaware court preliminary injunction against its co-founder Capitali. The 20% cut is a large restructuring for a company this size and will be the focus on the call — whether it is a one-time efficiency move or a signal of slower hiring ahead.
At the time of this announcement, NET was trading at $280.14 on NYSE in the Technology sector, with a market capitalization of approximately $87.1B. The 52-week trading range was $158.83 to $370.35. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Wiseek News.