Cloudflare Beats Q3 Revenue Estimates, Guides Q4 to $845M
NET sits 75% above its 52-week low of $158.83 on elevated volume (2.5× avg).
Summary
Cloudflare beat on both lines for Q3: revenue of $782.51 million versus the $738.53 million consensus, up 39% year over year, and adjusted EPS of $0.38 against $0.34 expected. The company still posted a $34.07 million net loss, or $0.10 per share. Management attributed the growth to demand for its AI-powered Internet development platform and rising spending on security services as digital threats increase. Guidance is the bigger swing factor: Q4 revenue of $845-846 million with non-GAAP EPS of $0.43, and full-year 2026 revenue of $2.963-2.964 billion. This follows the 8-K filed tonight confirming the 39% growth and roughly $2.96 billion full-year outlook, and it lands after a strong run of news — the upsized $2.5 billion 0% convertible notes in August, the GlobalSign certificate authority acquisition, and JPMorgan's pick in October. At 161x forward earnings, the stock is priced for continued beats, so the Q4 guide is what matters from here.
At the time of this announcement, NET was trading at $278.59 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: Reuters.