BigCommerce a Cloudflare spustily WebMCP, který umožní AI asistentům přímo vyhledávat, porovnávat a nakupovat ve způsobilých e-shopech BigCommerce bez nutnosti konfigurace ze strany obchodníků; funkce je pro ně ve výchozím nastavení zapnutá.
AUSTIN, Texas, Oct. 21, 2026 (GLOBE NEWSWIRE) -- Commerce.com (Nasdaq: CMRC), the open commerce ecosystem built to help merchants win as AI reshapes how customers discover and buy, today announced a partnership with Cloudflare that lets AI agents in a customer’s web browser search, compare and shop directly on BigCommerce merchants’ online stores with no setup required. The new functionality is turned on by default for eligible BigCommerce merchants.
Shoppers increasingly ask AI agents to find and compare products for them, but most online stores were designed for people to read and click, which leaves agents guessing at buttons and forms. WebMCP is a standard that lets a website tell a shopper’s browser agent directly what it sells and what it can do.
For example, a shopper might ask their browser agent to “find a lightweight jacket in my size under $150.” The agent can search the store’s actual products and prices, add the best match to a cart and hand back a link to complete checkout on the merchant’s store.
For merchants, that means showing up when shoppers use AI to shop with accurate prices and stock pulled directly from the store. Merchants don’t need to write code or change their site. Checkout, the customer relationship and the brand stay with the merchant. Merchants can turn off the feature in a new settings menu, which also manages all of Commerce’s AI connections.
“Every AI assistant is about to become a shopping assistant, and most of them are still guessing their way through storefronts the way a bot would, clicking and scraping and getting prices and inventory wrong,” said Sharon Gee, senior vice president of product for AI at Commerce. “WebMCP replaces guessing with a handshake. A shopper's agent asks the store directly for what's in stock at what price in which sizes, and the store answers accurately. With this partnership, every merchant on our platform gets that handshake automatically, with no code to write and no changes to their site. Shoppers get agents that work the way they expect, and merchants stay in control of their catalog, their customers, and the sale. Commerce is ensuring our customer sites are agent-ready by default.”
“The web is being rebuilt for AI agents, and it's on platforms like BigCommerce and Cloudflare to handle that shift so merchants can focus on running their business,” said Matthew Conroy, senior director at Cloudflare. “Together, we're giving every merchant a way to tell a shopper's agent exactly what their store can do, on their own site and on their own terms. We think that's how the agent-ready web should work: built on open standards with the site owner in control.”
WebMCP builds on the existing BigCommerce MCP Toolkit, which gives agents access to functions they can use to complete real-world tasks. For eligible B2C and B2B stores, BigCommerce’s server-side Storefront MCPs expose shopping actions to agents connecting from outside the storefront, while WebMCP brings those actions to agents working directly in the shopper’s browser.
The partnership is part of Commerce’s broader work to help merchants prepare their catalogs for emerging discovery experiences, reach shoppers across new channels, and support paths to purchase.
About Commerce
Commerce (Nasdaq: CMRC) empowers businesses to innovate, grow, and thrive by providing an open, AI-driven commerce ecosystem. As the parent company of BigCommerce, Feedonomics, and Makeswift, Commerce connects the tools and systems that power growth, enabling businesses to unlock the full potential of their data, deliver seamless and personalized experiences across every channel, and adapt swiftly to an ever-changing market. Trusted by leading businesses like Coldwater Creek, Cole Haan, Dell, Harvey Nichols, King Arthur Baking Co., Mizuno, Pacsun, Perry Ellis, Skechers, SportsShoes and Uplift Desk, Commerce delivers the storefront control, optimized data, and AI-ready tools businesses need to grow, serve diverse buyers, and operate with confidence in an increasingly intelligent, multi-surface world. For more information, visit www.commerce.com or follow us on X and LinkedIn.
BigCommerce®, the Commerce logo, and other brands are the trademarks or registered trademarks of Commerce.com Pty. Ltd. Third-party trademarks and service marks are the property of their respective owner.
Akcie Cloudflare (NET) uzavřely na 350,87 USD po denním poklesu o 2,79 %. Trh očekává čtvrtletní EPS ve výši 0,35 USD a tržby ve výši 733,3 milionu USD.
Cloudflare (NET - Free Report) closed the most recent trading day at $350.87, moving -2.79% from the previous trading session. This change lagged the S&P 500's 0.06% loss on the day. At the same time, the Dow added 0.38%, and the tech-heavy Nasdaq lost 0.44%.
Heading into today, shares of the web security and content delivery company had gained 17.75% over the past month, outpacing the Computer and Technology sector's gain of 4.85% and the S&P 500's gain of 2.36%.
The investment community will be paying close attention to the earnings performance of Cloudflare in its upcoming release. The company's earnings per share (EPS) are projected to be $0.35, reflecting a 29.63% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $733.3 million, reflecting a 30.47% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $1.26 per share and a revenue of $2.87 billion, demonstrating changes of +35.48% and +32.54%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Cloudflare. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. At present, Cloudflare boasts a Zacks Rank of #3 (Hold).
Looking at valuation, Cloudflare is presently trading at a Forward P/E ratio of 285.51. This signifies a premium in comparison to the average Forward P/E of 20.96 for its industry.
Meanwhile, NET's PEG ratio is currently 7.64. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Internet - Software industry stood at 1.21 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 94, putting it in the top 39% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Cloudflare přebírá startup Deno, aby zlepšila programovací model a platformu Workers pro vývoj a provoz softwaru ve své síti. Finanční podmínky transakce nebyly zveřejněny.
Image Credits:Sundry Photography / Getty Images Cloudflare announced Friday that it’s acquiring Deno, the startup behind the programming runtime of the same name.
According to Cloudflare’s Kenton Varda, Cloudflare will use this acquisition to improve its Workers programming model and platform, which allows customers to build and run software on Cloudflare’s network. (Varda is principal engineer for Cloudflare Workers.)
Deno — which was co-founded by Bert Belder and Node.js creator Ryan Dahl — recently launched celld, an open source implementation of Workers, which Varda wrote “delighted” the Cloudflare team. Varda argued that contrary to “a popular theory” that the company “made Cloudflare Workers work differently from other cloud platforms in order to create ‘lock-in,’” the company believes “being open source and giving people an escape hatch is good business.”
Dahl, meanwhile, wrote that his team is “joining Cloudflare to make the Workers programming model a mainstream way to build servers.”
The financial terms of the acquisition were not disclosed. Deno had raised a total of $26 million, including a Series A led by Sequoia.
Akcie Cloudflare v září vzrostly o 13,8 % díky nové kontrole webových robotů využívajících AI, partnerství s Deutsche Telekom a zlepšenému sentimentu investorů.
September was a solid month for Cloudflare (NET +1.18%) as the stock jumped 13.8%, according to data supplied by S&P Global Market Intelligence.
The broader market edged lower last month, as evidenced by the 0.5% decline of the S&P 500 during the same period. However, Cloudflare -- which makes websites quicker and more secure -- bucked the trend, driven higher by improving investor sentiment and several positive business developments.
Image source: Getty Images.
Key business developmentsIn mid-September, Cloudflare announced the debut of its Accountable designation for artificial intelligence (AI) web crawling. Web crawlers are automated software systems or algorithms that continually browse the internet to index content -- a tool primarily used by search engines to catalog content. In recent years, crawlers have been used to collect data, including text, images, and code, which then form the data sets to train large language models (LLMs) and other AI systems.
Cloudflare's new setting allows customers to choose whether its sites can be "crawled" by AI training systems, and -- if so -- what data can be retrieved. This gives the companies "meaningful control over how their work is used," according to CEO Matthew Prince. Users can choose between search, AI training, and AI agents to determine the level of access crawlers have.
Late last month, Cloudflare unveiled a partnership with Deutsche Telekom, Europe's largest telecommunications provider. As part of the collaboration, the pair will directly interconnect their respective networks, "giving European organizations access to Cloudflare's global cloud platform, one of the largest in the world." Deutsche Telekom will also offer Cloudflare's connectivity cloud and security services to its customers, further expanding its market opportunity in Europe.
Finally, Cloudflare got a little love from Wall Street. Bernstein analyst Peter Weed raised his price target on the stock to $181 from $164 while maintaining a market perform (hold) rating. He notes that investor sentiment has rebounded for cybersecurity stocks as fears of being displaced by AI have been put to rest.
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So is Cloudflare stock a buy?Cloudflare offers a large and growing suite of compute, storage, AI, networking, developer tools, and security products, and customers have been adopting them in record numbers. In Q2, the company reported accelerating revenue growth that climbed 36% year over year, with record growth in total paying customers, large customers, and developers on its platform, helping to highlight the opportunity ahead.
Renewed optimism has driven Cloudflare stock up 74% so far this year, with a commensurate increase in its valuation. It certainly isn't cheap at 33 times next year's expected sales. That said, the stock has soared 1,800% since its debut in late 2019 (as of this writing), which helps explain why some investors are still willing to pay up for Cloudflare -- and why it's worth a look despite its premium pricetag.
Analytik společnosti BTIG zvýšil cílovou cenu akcií Cloudflare na 413 USD a očekává, že tržby ve čtvrtém čtvrtletí dosáhnou zhruba 800 milionů USD, což představuje meziroční růst o 30,2 %.
BTIG analyst Gray Powell raised the price forecast for Cloudflare (NYSE:NET) from $382 to $413, while maintaining a Buy rating. The analyst cited stronger growth and product momentum at the company.
The analyst wrote that they spoke with several Cloudflare contacts and industry analysts, including three partners and four industry analysts. Feedback was broadly positive.
• Cloudflare stock is under selling pressure. Why are NET shares declining?
Strong YTD Growth ProjectionThe largest partner reported 40%-50% year-to-date growth, accelerating to the high 70% range in September, versus 40% previously. Another contact reported about 26% growth over the past three to four quarters and expects 28% growth by the fourth quarter.
A European distributor expanded its Cloudflare agreement and said the company is gaining market share and strengthening its enterprise presence.
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The only cautious view came from a Secure Access Service Edge (SASE) analyst, who cited challenges in moving upmarket due to Cloudflare’s historical focus on smaller customers and cloud-only model.
Street Expects Double-Digit GrowthThe Street expects fiscal third-quarter revenue of $737 million, up 31.1% year over year, while the analyst sees upside to $760 million, or 35.2% growth.
Under that scenario, the fourth quarter revenue could reach about $800 million, up 30.2%, versus the $796 million Street estimate, adds the analyst.
NET Earnings Preview and Analyst Price TargetsLooking further out, the next major catalyst for the stock arrives with the Oct. 29 (estimated) earnings report.
EPS Estimate: 34 cents (Up from 27 cents year-over-year) Revenue Estimate: $737.95 million (Up from $562.03 million YoY) Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $335.20. Recent analyst moves include:
Bernstein: Market Perform (Raises target to $181 on Sept. 17) Citizens: Market Outperform (Maintains target to $394 on Aug. 31) NET Stock Today: Cloudflare Price Action on WednesdayCloudflare shares were down 1.77% at $348.72 at the time of publication on Wednesday, according to Benzinga Pro data.
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Cloudflare spustil Basin, bezserverovou datovou platformu postavenou na technologiích Apache Iceberg a Cloudflare R2, která má zjednodušit ukládání a analýzu dat a snížit náklady na infrastrukturu.
Key Takeaways NET launched Basin to help customers collect, store and analyze data without managing dedicated servers.Basin uses Apache Iceberg and Cloudflare R2 to simplify data management and reduce infrastructure costs.Basin could expand NET's platform usage as businesses build AI and cloud applications requiring more data. Cloudflare (NET - Free Report) is expanding its platform with the launch of Basin, a data platform designed to help developers and enterprises collect, store and analyze data without managing dedicated servers. Basin is built on Apache Iceberg and Cloudflare R2, allowing customers to work with data using tools they already use. It also removes data transfer fees between clouds. By making data management simpler and reducing infrastructure costs, Basin could help Cloudflare attract more developers and enterprises to its platform.
Basin is designed to address some of the main challenges of running a modern data stack. Traditional data platforms often require dedicated servers, multiple systems and significant data movement, which can increase costs and complexity. Basin uses a serverless model, allowing teams to ingest, organize and query data on demand through Cloudflare’s network. This could make data analytics more accessible to smaller teams that may not have large data engineering resources.
The launch also strengthens Cloudflare’s position in AI-related workloads, which increasingly depend on large amounts of data. Basin allows customers to store and analyze data in an open format without locking it to one provider. This can be useful for businesses building AI applications that need to access data across different tools, clouds and regions. Cloudflare is therefore expanding from providing the infrastructure to run applications toward helping customers manage the data that supports those applications.
Basin’s early customer feedback points to demand for a simpler data architecture. Cloudflare highlighted customers such as Anomaly, the company behind the open-source AI coding agent OpenCode, that moved its entire data pipeline to Basin, replacing an AWS S3 and Athena setup. Further, Bobsled, a data platform company, is also using Basin to make its data available across major data and AI platforms while avoiding egress fees. As more companies build AI and cloud applications, Basin could give Cloudflare another way to increase platform usage and expand its addressable market.
Cloudflare Faces Tough CompetitionCompetitors like Palo Alto Networks (PANW - Free Report) and Zscaler (ZS - Free Report) are also gaining ground through platform expansion and AI innovation.
Palo Alto Networks is benefiting from the broader shift toward AI as enterprises expand their security and infrastructure needs. The company is using its platformization strategy to combine network security, SASE and AI security, encouraging customers to consolidate more products on one platform. In fiscal 2026, PANW displaced legacy vendors in nearly 100 accounts worth more than $400 million in total contract value. As enterprises add more AI infrastructure and workloads, PANW can expand across more security layers and increase spending within existing enterprise accounts.
Zscaler is benefiting as enterprises extend Zero Trust beyond traditional users to AI applications, workloads and agents. Its Security for AI offering helps customers secure AI models, control agent access and protect sensitive data, while its broader Zero Trust platform can cover users, branches and cloud workloads. In fiscal 2026, Security for AI bookings increased more than 50% sequentially in the fourth quarter, while ARR from non-seat-based solutions grew more than 100% year over year. As AI adoption expands, ZS can use its broader platform to increase customer adoption and capture more enterprise security spending.
NET’s Price Performance, Valuation & EstimatesShares of Cloudflare have jumped 80% in the year-to-date period compared with the Zacks Internet – Software industry’s return of 8.5%.
NET YTD Price Return Performance
Image Source: Zacks Investment Research
From a valuation standpoint, NET trades at a forward price-to-sales ratio of 35.81, significantly higher than the industry’s average of 4.44. The Zacks Value Score of F suggests that NET stock is overvalued.
NET Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for NET’s 2026 earnings is pegged at $1.26 per share, unchanged over the past 30 days, indicating a 35.5% increase from the previous year.
Image Source: Zacks Investment Research
Cloudflare currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cloudflare's network just crossed a threshold that changes the math on who actually uses the internet, and investors are betting that milestone turns into something much bigger than a one-month stock surge.
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Cloud software’s past-month rally landed mostly on two names, and Cloudflare (NYSE:NET | NET Price Prediction) is the one tied most directly to machine-driven internet traffic. Cloudflare stock is up 28% over the past month and trades at $357.02. That run raises a fair question about how much of Cloudflare’s growth story the share price already reflects.
Checking in on the peers, Datadog (NASDAQ:DDOG) stock is up 31% over the past month and trades at $278.07, an even faster climb. Snowflake (NYSE:SNOW) stock is up 0.98% over the past month and trades at $340.48, a nearly flat performance when compared to the other two cloud names.
At the same time, the First Trust Cloud Computing ETF (NASDAQ:SKYY) and the Invesco QQQ Trust (NASDAQ:QQQ) are each up 6% over the past month. Both funds gained far less than Cloudflare and Datadog shares, placing the bulk of the move in two stocks.
Non-Human Traffic Becomes the Majority Cloudflare reported its second-quarter 2026 results on August 6, with the company’s revenue up 36% from a year earlier. The more striking detail came from Cloudflare’s network, where more than half of the traffic was non-human for the first time. That means machines, such as bots, crawlers and artificial intelligence (AI) agents, now generate most of the requests the company handles.
Chief Financial Officer Thomas Seifert tied Cloudflare’s quarter to that shift, stating, “We delivered a stellar second quarter with strength across all major metrics we track, driven in particular by another quarter of rapid growth in our Workers developer platform and agentic workloads across our network.” Agentic workloads are tasks that AI agents carry out on their own, and Cloudflare’s Workers platform gives developers a lightweight place to build and run that code.
Datadog Runs as Snowflake Stalls Datadog sells observability software that monitors applications and infrastructure, while Snowflake offers a data platform charged on consumption. Revenue at Cloudflare, Datadog and Snowflake rises as workloads grow, even though each company operates at a different layer of the technology stack.
That shared billing model makes Snowflake’s flat month the more telling detail. Snowflake stock barely moved while Datadog and Cloudflare shares ran, a sign that the market is paying up for specific AI traffic and monitoring stories in this stretch.
Cloudflare co-founder Matthew Prince put the trend in sharper terms on the second-quarter call, declaring, “In other words, humans will be a rounding error on the Internet, not because human traffic goes down, but that’s just how fast we’re seeing non-human traffic grow.” Beyond security, Cloudflare is building payment rails and controls meant to let AI agents pay tiny fees per request, a potential new way to monetize machine traffic.
Weighing a Narrow Rally Built on an Early Story The bull case for Cloudflare rests on non-human traffic becoming the majority of what crosses the network, since a company paid to route and secure traffic benefits from more of it (we covered seven of the companies supplying the AI data-center expansion, power, cooling and networking included, which you can grab here). However, this narrow rally is priced on a machine-traffic story still in its early innings, and Cloudflare stock has already collected a 28% gain in a month. Cloudflare also still reports GAAP net losses, tying its valuation closely to sustained growth.
The next Cloudflare quarterly report should show whether machine traffic translates into faster revenue growth. Datadog’s and Snowflake’s next results could also show whether the AI demand behind the two big movers spreads across cloud software more broadly.
Contact [email protected] for any questions or corrections.
Cloudflare has surged nearly 80% this year on the back of an AI security boom, but the stock now trades at a multiple that punishes any stumble. The next two earnings reports will determine whether this rally was justified or…
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Cloudflare (NYSE:NET | NET Price Prediction) is a Hold at $352.22. The stock has gained 78.66% this year, so the key question is whether demand for AI-era security can support a valuation that already assumes years of strong execution.
Cloudflare runs a global network that offers security, performance, and developer tools. It now presents itself as core infrastructure for AI agents. The rally picked up after second-quarter revenue of $696.06M rose 35.9% year over year. That result came with a fourth straight EPS beat and raised guidance. Shares were $292.47 when the results came out.
Faster Growth and an Agent-First Security Pitch Power the Bull Case Revenue growth has sped up for three straight quarters, from 30.7% to 33.5% to 35.9%. Management raised full-year non-GAAP EPS guidance to $1.25 to $1.26, up from $1.19 to $1.20. Signed revenue not yet recognized reached $2,732,000,000, up 38%. Dollar-based net retention, which tracks how much more existing customers spend, rose to 120%.
Security demand tied to AI is showing up in sales. CEO Matthew Prince said “the number one thing that’s causing our phone to ring from big companies is them saying, listen, we know we have to do AI, but we need to do it more securely.” Analysts revised full-year EPS estimates up 30 times in the past month. CrowdStrike (NASDAQ:CRWD) trades at 208x forward earnings while growing revenue 25.8%.
A 179x Forward Multiple Leaves Little Room for a Slowdown Cloudflare trades at 179x forward earnings and 50.17 times trailing sales. Zscaler (NASDAQ:ZS) trades at 44x forward earnings. Third-quarter guidance points to 31% growth, a slowdown from the second quarter.
Profitability is getting worse on a GAAP basis. The net loss grew to $170.0M from $50.4M, driven by a $150.7M restructuring charge. Stock-based compensation reached $140.6 million. Non-GAAP gross margin fell to 73.1% from 76.3%, and the company has about $3.3B in convertible debt.
Why Third-Quarter Results Should Settle This Debate Four straight quarters of beats and rising guidance make a Sell hard to defend. A multiple this high makes a Buy hard to defend too. The next test is whether third-quarter revenue beats the $736-737M guidance by the usual margin. CFO Thomas Seifert warned that consumption-based contracts make “how we move from quarter to quarter” harder to forecast. Restructuring charges of up to $165 million will weigh on GAAP results.
Shares Have Outrun Both the S&P 500 and Wall Street’s Target The average analyst target of $336.81 implies about 4.4% downside. Of 34 analysts, 24 rate the stock a Buy.
Strong Buy: 7 Buy: 17 Hold: 8 Offers: 1 Strong Sell: 1 Year to date, Cloudflare is up 78.66%, while the S&P 500 is up 12.08%. Over the past month, the stock rose 17.47%, though the index slipped 0.66%. Shares now sit just below their 52-week high of $367.43.
Cloudflare Is a Hold Until Growth Justifies the Premium At $352.22, Cloudflare is a Hold.
The AI security story is real, and the stock price reflects it. A Buy case would need third-quarter growth holding in the mid-30s despite guidance calling for 31%, or a decline toward the 50-day moving average of $301.26. A Sell case would build if growth slows to the forecast pace and gross margins keep falling.
With a beta of 1.664, any disappointment would likely hit this stock harder than the broader market. Over the next two quarterly reports, watch revenue growth, gross margin, and whether the restructuring pays off in operating leverage.
Cloudflare has earned its premium, and the next two earnings reports need to show that growth can keep pace with a valuation that already prices in the AI boost.
Contact [email protected] for any questions or corrections.
Cloudflare hlásí rostoucí poptávku po Zero Trust a SASE, protože firmy chtějí bezpečně nasazovat AI agenty. Více než 50 % provozu na síti bylo ne-lidského původu a přes 80 % velkých AI firem je zákazníky.
Key Takeaways Cloudflare is seeing rising Zero Trust and SASE demand as enterprises seek to secure AI agent adoption. A U.K. government agency reconsidered its Zero Trust project with NET to adopt an AI agents-first approach. More than 50% of Cloudflare's network traffic was nonhuman, while over 80% of major AI firms were customers. Cloudflare (NET - Free Report) is seeing growing interest in its Zero Trust and SASE products as enterprises look to secure the increasing use of artificial intelligence (AI) agents. During the second-quarter 2026 earnings call, management said the biggest reason large companies are reaching out is that they know they need to adopt AI but want to do so securely. As businesses deploy more AI agents, they will need security controls that can protect these agents, along with their human users. This is creating a new opportunity for Cloudflare’s security business.
Cloudflare believes its approach to securing AI agents can help its Zero Trust and SASE platforms gain market share. The company said many traditional Zero Trust vendors continue to focus mainly on human users, while Cloudflare is building its security model around the growing number of AI agents that enterprises will use. In one example, a large U.K. government agency was evaluating a first-generation Zero Trust provider but reconsidered the project after discussing its plans for AI agents with Cloudflare. The agency canceled its existing request for proposal and is now reevaluating the project with an agents-first approach.
The shift toward AI agents could also strengthen demand for Cloudflare’s broader security platform. Management said the company’s SASE and Zero Trust platforms have gained share significantly over the past six months, helped by its developer platform and its focus on AI. Cloudflare’s developer platform gives it a direct connection to companies building and deploying AI agents, creating opportunities for the company to bring security services into these workloads as they scale.
The opportunity comes as AI-driven traffic is expanding rapidly across Cloudflare’s network. More than 50% of the traffic on the network was nonhuman in the second quarter, while more than 80% of major AI companies are already Cloudflare customers. As enterprises deploy more AI agents, the need to secure their identities, access and activity could increase demand for Zero Trust and SASE solutions.
Cloudflare Faces Tough CompetitionZscaler (ZS - Free Report) and Palo Alto Networks (PANW - Free Report) are also seeing higher demand for solutions that help enterprises secure AI applications, models and autonomous agents.
Zscaler is expanding its platform to secure AI agents and enterprise AI use. Its Zero Trust Exchange for agents and Endpoint AI Security are designed to enforce AI policies and protect agent activity. The company also plans to launch Agentic SecOps, which uses AI agents to detect, investigate and respond to threats at machine speed. Zscaler ended fiscal 2026 with 950-plus Zero Trust Everywhere customers compared with more than 350 at the end of fiscal 2025.
Palo Alto Networks is taking a similar approach with Prisma AIRS, which is focused on securing AI applications and agents. Prisma AIRS crossed $100 million in ARR within four quarters of general availability and had more than 800 customers by the end of fiscal 2026. Further, agentic traffic on PANW’s SASE platform increased ninefold over the past nine months, while SASE bookings grew 40% in fiscal 2026.
NET’s Price Performance, Valuation & EstimatesShares of Cloudflare have jumped 77% in the year-to-date period compared with the Zacks Internet – Software industry’s return of 9.2%.
NET YTD Price Return Performance
Image Source: Zacks Investment Research
From a valuation standpoint, NET trades at a forward price-to-sales ratio of 35.43, significantly higher than the industry’s average of 4.44. The Zacks Value Score of F suggests that NET stock is overvalued.
NET Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for NET’s 2026 earnings is pegged at $1.26 per share, unchanged over the past 30 days, indicating a 35.5% increase from the previous year.
Image Source: Zacks Investment Research
Cloudflare currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cloudflare získala tříletý kontrakt za 11 milionů USD a další tříletý za 5,2 milionu USD, když zákazníci nahrazují starší bezpečnostní a síťové nástroje jedinou platformou. Počet klientů s ročními tržbami nad 100 000 USD vzrostl ve 2. čtvrtletí meziročně o 27 % na 4 698 a tvořil 73 % celkových tržeb.
Key Takeaways Cloudflare won an $11 million deal after a customer replaced five legacy point solutions.A $5.2 million SASE deal will replace legacy VPNs and virtual desktops with Zero Trust.Cloudflare had 4,698 $100,000-plus customers, up 27% year over year and generating 73% of revenues. Cloudflare (NET - Free Report) is using its unified platform strategy to offer security, networking and developer services through a single platform as enterprises look to reduce the number of tools they use. In the second quarter of 2026, a Global 2000 European technology company signed a three-year, $11 million contract for Cloudflare’s Application Services and Zero Trust products, including its developer platform for future AI workloads. The customer replaced five legacy point solutions and could eliminate up to seven more as part of its longer-term plan.
Another customer win highlights the value of Cloudflare’s unified platform approach. A Fortune 100 technology company signed a three-year, $5.2 million contract for Cloudflare’s full SASE portfolio. The customer is replacing legacy virtual private networks and virtual desktops and plans to move its global workforce onto a single Zero Trust platform. Cloudflare said its faster network performance and single-pane management helped it win the deal against two first-generation Zero Trust vendors.
Cloudflare is also using its developer platform to expand relationships across its product portfolio. A technology company in Asia-Pacific expanded from an $8.7 million Application Services contract to a $4 million Workers deal in just one year. The customer now uses Cloudflare for Application Security, Zero Trust and its developer platform. These customer expansions show how the company’s unified offering can lead customers from one product to another and increase usage of its platform.
The platform strategy is being supported by strong customer growth. Cloudflare ended the second quarter with 4,698 customers generating more than $100,000 in annual revenues, up 27% year over year and accounted for 73% of total revenue. As more enterprises consolidate legacy tools onto Cloudflare, the company could have more opportunities to expand within existing accounts and increase the value of its customer relationships.
The Zacks Consensus Estimate for Cloudflare’s 2026 and 2027 revenues indicates year-over-year growth of 32.5% and 28.6%, respectively.
Cloudflare Faces Tough CompetitionCompetitors like Palo Alto Networks (PANW - Free Report) and Zscaler (ZS - Free Report) are also gaining ground through platform expansion and AI innovation.
Palo Alto Networks is benefiting from stronger enterprise platform adoption. The company added about 220 net new platformizations in the fourth quarter of fiscal 2026, while platformized customers had net revenue retention above 120%. PANW also closed several large enterprise deals, including a $126 million agreement with a global telecom company, a $72 million deal with an IT service provider and a $53 million transaction with a global payments platform.
Zscaler ended fiscal 2026 with 4,182 customers generating more than $100,000 in annual recurring revenue (ARR), up 20% year over year. The company also had 785 customers with more than $1 million in ARR, up 18%. Its Z-Flex offering is helping customers expand their spending, with Z-Flex generating more than $770 million in total contract value in the fourth quarter, up more than 60% sequentially.
NET’s Price Performance, Valuation & EstimatesShares of Cloudflare have jumped 82% in the year-to-date period compared with the Zacks Internet – Software industry’s return of 9.1%.
NET YTD Price Return Performance
Image Source: Zacks Investment Research
From a valuation standpoint, NET trades at a forward price-to-sales ratio of 36.50, significantly higher than the industry’s average of 4.42. The Zacks Value Score of F suggests that NET stock is overvalued.
NET Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for NET’s 2026 earnings is pegged at $1.26 per share, unchanged over the past 30 days, indicating a 35.5% increase from the previous year.
Image Source: Zacks Investment Research
Cloudflare currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cloudflare v pondělí dosáhl nového 52týdenního maxima na úrovni 338,00 USD. Firma zároveň oznámila nástroje pro správu nebo blokování AI crawlerů na webových stránkách zákazníků.
Cloudflare, Inc. (NYSE:NET – Get Free Report)’s share price reached a new 52-week high during trading on Monday . The company traded as high as $338.00 and last traded at $328.5670, with a volume of 4545834 shares. The stock had previously closed at $323.60.
Cloudflare News Roundup Here are the key news stories impacting Cloudflare this week:
Positive Sentiment: Cloudflare introduced controls that let customers manage or block AI crawlers from accessing their websites. The feature could strengthen the company’s position in AI infrastructure while helping customers address content usage, bandwidth costs and data-scraping concerns. Cloudflare Adds AI Crawling Controls as Stock Valuation Draws Focus Positive Sentiment: Recent commentary remains favorable, including an investor highlighting Cloudflare’s long-term prospects and Wall Street’s average recommendation remaining equivalent to “Buy.” Cloudflare’s latest reported quarter also featured 35.9% year-over-year revenue growth and earnings above consensus estimates. Positive Sentiment: Unusually high call-option activity and a reported 11.7% increase in the consensus price target indicate continued speculative and institutional interest in further upside, although neither guarantees future gains. Wall Street’s Bullish Views on Cloudflare Neutral Sentiment: Cloudflare rose alongside Fastly and Datadog in a sector-wide move after Treasury yields eased and signs of cooler U.S.-China tensions improved risk appetite. The strength was not tied to a new Cloudflare-specific announcement. Cloudflare Shares Rise as Software Stocks Rally Negative Sentiment: Investors are questioning what happens if Cloudflare’s growth cools. After a substantial multiyear rally, the stock’s roughly 35-times forward enterprise-value-to-revenue valuation leaves little room for execution disappointments. The reported average price target of $321.85 is also below recent trading levels. What Happens If Cloudflare’s Growth Cools? Negative Sentiment: CFO Thomas Seifert sold 10,000 shares worth approximately $3.3 million, reducing his holdings by 8.48%. The sale was conducted under a pre-arranged Rule 10b5-1 plan, which makes it less significant than discretionary insider selling but still adds a cautionary signal. Analysts Set New Price Targets NET has been the topic of several recent analyst reports. DZ Bank cut Cloudflare from a “strong-buy” rating to a “strong sell” rating in a research report on Friday, August 7th. Citigroup reissued a “market outperform” rating on shares of Cloudflare in a report on Monday, August 31st. Cantor Fitzgerald restated a “neutral” rating and set a $250.00 price objective on shares of Cloudflare in a research report on Monday, August 3rd. Barclays raised their target price on shares of Cloudflare from $300.00 to $355.00 and gave the stock an “overweight” rating in a report on Friday, August 7th. Finally, Truist Financial lifted their target price on shares of Cloudflare from $300.00 to $350.00 and gave the stock a “buy” rating in a research report on Friday, August 7th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, seven have assigned a Hold rating and four have assigned a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $321.85.
Read Our Latest Analysis on Cloudflare Cloudflare Price Performance The firm’s 50-day moving average is $295.12 and its 200-day moving average is $247.37. The company has a debt-to-equity ratio of 1.22, a current ratio of 1.82 and a quick ratio of 1.82. The company has a market capitalization of $125.10 billion, a P/E ratio of -610.22, a price-to-earnings-growth ratio of 279.70 and a beta of 1.66.
Cloudflare (NYSE:NET – Get Free Report) last announced its earnings results on Thursday, August 6th. The company reported $0.29 EPS for the quarter, beating analysts’ consensus estimates of $0.27 by $0.02. The business had revenue of $696.06 million during the quarter, compared to analysts’ expectations of $664.66 million. Cloudflare had a negative net margin of 8.21% and a negative return on equity of 3.88%. The firm’s revenue was up 35.9% on a year-over-year basis. During the same period in the prior year, the company earned $0.21 earnings per share. Cloudflare has set its Q3 2026 guidance at 0.340-0.340 EPS and its FY 2026 guidance at 1.250-1.260 EPS. Analysts predict that Cloudflare, Inc. will post 0.03 EPS for the current fiscal year.
Insider Buying and Selling at Cloudflare In other news, CFO Thomas J. Seifert sold 10,000 shares of Cloudflare stock in a transaction dated Thursday, September 17th. The stock was sold at an average price of $332.46, for a total transaction of $3,324,600.00. Following the transaction, the chief financial officer directly owned 107,902 shares of the company’s stock, valued at $35,873,098.92. The trade was a 8.48% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Michelle Zatlyn sold 33,003 shares of the business’s stock in a transaction that occurred on Tuesday, September 8th. The shares were sold at an average price of $277.43, for a total value of $9,156,022.29. Following the transaction, the insider owned 69,775 shares of the company’s stock, valued at approximately $19,357,678.25. This trade represents a 32.11% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 552,674 shares of company stock valued at $153,972,304 in the last ninety days. 10.66% of the stock is currently owned by company insiders.
Institutional Trading of Cloudflare A number of hedge funds and other institutional investors have recently modified their holdings of the company. Norges Bank bought a new stake in Cloudflare in the fourth quarter worth $718,316,000. Jennison Associates LLC grew its stake in shares of Cloudflare by 135.8% in the 1st quarter. Jennison Associates LLC now owns 4,394,484 shares of the company’s stock worth $906,758,000 after buying an additional 2,530,872 shares in the last quarter. Corient Private Wealth LLC grew its stake in shares of Cloudflare by 4,042.6% in the 4th quarter. Corient Private Wealth LLC now owns 1,399,378 shares of the company’s stock worth $275,887,000 after buying an additional 1,365,598 shares in the last quarter. Swedbank AB increased its holdings in shares of Cloudflare by 697.5% in the 1st quarter. Swedbank AB now owns 927,606 shares of the company’s stock worth $191,402,000 after buying an additional 811,297 shares during the last quarter. Finally, National Pension Service increased its holdings in shares of Cloudflare by 53.2% in the 4th quarter. National Pension Service now owns 948,003 shares of the company’s stock worth $186,899,000 after buying an additional 329,341 shares during the last quarter. 82.68% of the stock is owned by hedge funds and other institutional investors.
Cloudflare Company Profile (Get Free Report)
Cloudflare, Inc is a technology company that provides cloud-based connectivity, security and performance services for websites, applications, networks and other internet-connected resources. Its platform is designed to help organizations deliver digital content more quickly, protect against cyber threats and manage internet traffic across a global network.
The company’s offerings include content delivery and domain name system services, distributed denial-of-service protection, web application and application programming interface security, bot management, and network security tools.
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Cloudflare uvedl, že ve 2. čtvrtletí tvořilo více než 50 % provozu v jeho síti ne-lidský provoz, protože roste používání AI agentů. Zároveň počet vývojářů na platformě Workers překročil 7,4 milionu.
Key Takeaways Cloudflare saw more than 50% of network traffic come from nonhuman sources in the second quarter.Workers added nearly 2 million developers, reaching more than 7.4 million as AI agent use grows.Cloudflare launched new tools to monetize transactions among AI agents, businesses and content providers. Cloudflare (NET - Free Report) is seeing strong demand for its platform as businesses increasingly use artificial intelligence (AI) agents. In the second quarter of 2026, management said more than 50% of the traffic flowing across Cloudflare’s network was nonhuman in the second quarter, reflecting the rapid growth of AI agents and other machine-to-machine traffic. The company expects this trend to continue as businesses move from traditional web browsing toward AI-driven search, applications and agentic commerce.
Cloudflare’s Workers developer platform is one of the key products benefiting from this shift. The company ended the quarter with more than 7.4 million developers on its platform, adding nearly two million in the quarter alone. Management said Workers remains one of the fastest-growing parts of its business and is becoming a major driver of customer adoption and revenue growth as developers use it to build and deploy AI agents.
The growing use of AI agents is also creating new monetization opportunities for Cloudflare. During the second quarter, the company introduced Monetization Gateway, Wallets and cloudflare.pay to support transactions between AI agents, businesses and content providers. Management expects these tools to help Cloudflare participate in the evolving business model of the Internet as AI agents generate increasing volumes of traffic and transactions.
The AI opportunity comes as Cloudflare’s core business continues to grow at a strong pace. Second-quarter revenues increased 36% year over year, while dollar-based net retention reached 120%. Management said the company’s total addressable market has expanded to more than $300 billion from $30 billion at the time of its IPO as it has entered into areas such as SASE, Zero Trust, developer services and newer AI-related workloads. The growing use of AI agents and rapid adoption of Workers are helping Cloudflare address these opportunities, which should help the company increase its share in this expanding market and support revenue growth in the coming years.
The Zacks Consensus Estimate for Cloudflare’s 2026 and 2027 revenues indicates year-over-year growth of 32.5% and 28.6%, respectively.
Cloudflare Faces Tough CompetitionZscaler (ZS - Free Report) and Palo Alto Networks (PANW - Free Report) are also seeing higher demand for solutions that help enterprises secure AI applications, models and autonomous agents.
Zscaler is expanding its platform to secure AI agents and enterprise AI use. Its Zero Trust Exchange for agents and Endpoint AI Security are designed to enforce AI policies and protect agent activity. The company also plans to launch Agentic SecOps, which uses AI agents to detect, investigate and respond to threats at machine speed. Zscaler ended fiscal 2026 with 950-plus Zero Trust Everywhere customers compared with more than 350 at the end of fiscal 2025.
Palo Alto Networks is taking a similar approach with Prisma AIRS, which is focused on securing AI applications and agents. Prisma AIRS crossed $100 million in ARR within four quarters of general availability and had more than 800 customers by the end of fiscal 2026. Further, agentic traffic on PANW’s SASE platform increased ninefold over the past nine months, while SASE bookings grew 40% in fiscal 2026.
NET’s Price Performance, Valuation & EstimatesShares of Cloudflare have jumped 69.4% in the year-to-date period compared with the Zacks Internet – Software industry’s return of 3%.
NET YTD Price Return Performance
Image Source: Zacks Investment Research
From a valuation standpoint, NET trades at a forward price-to-sales ratio of 34.21, significantly higher than the industry’s average of 4.20. The Zacks Value Score of F suggests that NET stock is overvalued.
NET Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for NET’s 2026 earnings is pegged at $1.26 per share, unchanged over the past 30 days, indicating a 35.5% increase from the previous year.
Image Source: Zacks Investment Research
Cloudflare currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cloudflare vidí v agentické AI příležitost, která podle CFO Thomase Seiferta převýší dosavadní růstové tahouny. Firma zároveň zvýšila dlouhodobý cíl růstu na 50 % z 40 %.
Securing AI: 5 Most-Upgraded Stocks From the Q2 Reporting SeasonCloudflare NYSE: NET sees its opportunity in agentic artificial intelligence extending beyond its current growth drivers, with Chief Financial Officer Thomas Seifert saying the company’s network architecture is positioned to support low-latency, secure and distributed AI inference workloads.
Speaking at an investor event, Seifert said Cloudflare has moved from its earlier focus on improving sales execution and productivity into what he described as a broader shift driven by agentic AI. He said the company views its business in a series of “acts,” including its core network and security offerings, Workers and AI products, and a newer effort to help content creators protect and monetize their content.
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Quantum Computing Is Raising the Stakes for Cybersecurity: 5 Stocks to Watch“We think that that opportunity is going to dwarf what is already behind us,” Seifert said, referring to the company’s AI-related opportunities. He added that Cloudflare raised its long-term “North Star” growth target to 50% from 40% at its Investor Day and expects to exit the year with momentum toward that objective.
Developers and Consumption Revenue Signal Demand Seifert pointed to growth in Cloudflare’s developer community and variable consumption revenue as early indicators of demand. He said the company added 2 million developers quarter over quarter and that developers are increasingly building AI applications on its Workers platform.
Fastly’s Q2 Rally Shows Investors Are Buying the Edge AI TurnaroundAccording to Seifert, companies including Lovable, Figma, Anthropic and OpenAI are building on Workers. He also said Cloudflare estimates that about 80% of significant AI enterprise infrastructure customers use its services.
The CFO said AI is changing software spending from seat-based subscriptions toward more variable, consumption-driven models. In Cloudflare’s recent second quarter, he said upside relative to the company’s guidance came from greater-than-expected customer consumption, including more agentic AI traffic, requests and use of products through pool-of-funds contracts.
However, that shift also makes forecasting more difficult. Seifert said Cloudflare is rethinking its forecasting processes and needs to tie more deeply into infrastructure data to identify the indicators driving consumption. He said the company may need to shift guidance midpoints to preserve ranges as consumption becomes less predictable.
Inference Focus and Capital Spending Cloudflare does not currently view training the largest AI models as its principal market, Seifert said. Instead, it is focused on inference, including the CPU and memory-intensive work of orchestrating agentic workflows, such as determining where data comes from, what needs to be computed and which APIs need to be accessed.
Seifert said Cloudflare’s experience scheduling workloads across its network has helped it optimize AI inference. The company deploys GPU capacity across its points of presence and data centers, he said, but expects CPU and memory demand to be especially important for agentic applications.
Unlike providers that build capacity substantially ahead of anticipated demand, Cloudflare can invest in additional infrastructure in response to demand signals, according to Seifert. He said capital expenditures could rise, but that any increase would be expected to coincide with higher revenue.
He also said smaller and open AI models could create additional opportunities, including enterprise-specific use cases that may require localized or on-premise computing to limit data leakage. Cloudflare’s existing data sovereignty and privacy capabilities can help customers restrict where particular data is processed and stored, he said.
Content Monetization and Agentic Payments Seifert described Cloudflare’s fourth “act” as an effort to build infrastructure for content monetization and transactions in an agentic AI economy. The effort began with “pay per crawl,” designed to help content creators make content scarce and negotiate payment from parties that crawl it.
He said large language models may crawl important web pages frequently because they do not know what has changed. Because more than 20% of the web is behind Cloudflare’s network, Seifert said the company can identify changes and provide that information to AI companies, potentially reducing crawling costs and bandwidth requirements.
Cloudflare has also announced a Monetization Gateway, Cloudflare Wallets and identity tools. Seifert said the company aims to support autonomous transactions involving agents, but acknowledged that significant technical work remains.
Cloudflare is not yet capable of processing transactions at the millions-per-second scale it believes may be necessary. Seifert said the company is working with partners including Visa, Mastercard, American Express, PayPal and Coinbase. He said Cloudflare is evaluating potential pricing approaches, including transaction-based and take-rate models, with outside specialists and academics. “The big lift, to be honest, is still in front of us,” Seifert said, emphasizing that the company is focused on building a durable model rather than rushing commercialization.
Core Products and Internal AI Adoption Seifert said the rise of agentic AI could also benefit Cloudflare’s established content delivery, network security and SASE businesses. He cited increasing participation from media and publisher customers in the company’s network offerings and said enterprises adopting AI will need controls over data access and leakage.
While AI-related workloads may initially have lower gross margins because of computing utilization requirements, Seifert said they carry low costs to acquire and can create opportunities to attach security, sandboxing and AI Gateway products. He said Cloudflare’s strategy has long been to avoid discouraging data from moving across its network, then add value-added products around that traffic.
Internally, Seifert said Cloudflare is applying an AI-first approach to operations. He referenced the company’s employee reduction announced in the second quarter and said it has developed internal tools, including what it calls Cloudflare OS, to rethink processes. He also highlighted the company’s decision to hire 1,111 interns, saying many are working on projects intended to redesign business processes for an AI-first environment.
About Cloudflare (NYSE:NET)Cloudflare, Inc is a technology company that provides cloud-based connectivity, security and performance services for websites, applications, networks and other internet-connected resources. Its platform is designed to help organizations deliver digital content more quickly, protect against cyber threats and manage internet traffic across a global network.
The company's offerings include content delivery and domain name system services, distributed denial-of-service protection, web application and application programming interface security, bot management, and network security tools.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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CoreWeave klesá o 5 % na 90,27 USD i poté, co Michael Burry uzavřel svůj nejviditelnější AI short. Trh tak dál řeší hlavně riziko bilance, ne poptávku.
Michael Burry just closed his most prominent AI short, the kind of move that typically sparks a relief rally, yet CoreWeave kept falling. What that silence signals about the real debate gripping the cloud trade right now is worth understanding…
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Shares of CoreWeave (NASDAQ:CRWV) are down 5% to $90.27 midday Thursday, sliding even after Michael Burry, the investor known for The Big Short, closed his highest-profile bearish bet against the AI infrastructure complex. The move stands out because that kind of catalyst usually lifts a heavily shorted AI name. The failure to rally is itself the signal.
Oracle (NYSE:ORCL | ORCL Price Prediction) stock is down 3% to $157.43 heading into tonight’s fiscal Q1 2027 earnings release. Meanwhile, Cloudflare (NYSE:NET) shares are trading steady, off just 0.2% to $313.57.
The cloud group is separating around balance-sheet risk today. The First Trust Cloud Computing ETF (NASDAQ:SKYY) is down 0.1%. For broader tech-sector context, the Invesco QQQ Trust (NASDAQ:QQQ) is off by 0.74%, so CRWV and ORCL are down more than the NASDAQ 100.
Burry Covers, and CoreWeave Still Slides The Burry news was widely expected to lift AI-exposed names. NVIDIA (NASDAQ:NVDA) was the underlying, and the position was the market’s most visible AI-related short. Through his firm Scion Asset Management, Burry closed his December put options on the chipmaker without rolling into later contracts, and he has said the exit shouldn’t be read as optimism.
CoreWeave Chief Executive Michael Intrator stated on Wednesday that the company’s newer data-center deals carry more operating margin than earlier ones and that “the deal-level economics are excellent,” because customers are paying more for AI compute faster than input costs are rising. The demand data supports him: CoreWeave’s Q2 2026 revenue rose 112.3% year over year to $2.58 billion, with revenue backlog around $104 billion.
The bear case is a balance-sheet argument. 24/7 Wall St. calculates that CoreWeave carries a debt-to-equity ratio of 8.94, and interest expense reached $640 million in Q2 against free cash flow of -$5.74 billion after $6.42 billion in capex.
Supplier data still points to intense end demand. NVIDIA’s most recent report placed Vera Rubin racks in full production at CoreWeave, Google Cloud, Microsoft (NASDAQ:MSFT) Azure, Oracle Cloud Infrastructure, and Nebius (NASDAQ:NBIS); CEO Jensen Huang stated that “AI has reached its inflection point” and that compute is revenue (we profiled seven of the picks-and-shovels suppliers powering that buildout, beyond the chipmakers, in a free report here).
Oracle Funding Question Meets Options Optimism Oracle reports its fiscal Q1 2027 results after today’s close. Julia Spina, Head of Research, North America at IG Group, noted that options are pricing in an 11% move, or $18 per share, around the report, and calls are trading richer than puts. That’s the reverse of the usual pattern, with call premiums bid above puts into the print.
Funding is a major concern for Oracle. Guggenheim flagged that Oracle plans to raise $40 billion in fiscal 2027 for its AI buildout, its credit-default swaps have recently reached record highs, and analysts have pointed to financing risk, reported delays at some AI data-center sites, and heavy backlog concentration in a single AI lab.
Still, Oracle’s demand backdrop is strong. The most recent quarter showed Cloud Infrastructure revenue up 93% year over year to $5.79 billion, and remaining performance obligations reached $638 billion, up 363% year over year. The question is whether that backlog gets financed cleanly enough to translate into margin expansion.
Furthermore, sentiment into the report leans constructive. Polymarket traders are pricing the “beat quarterly earnings” outcome at 0.79, and a composite Oracle sentiment score sits at 74.54 with a bullish direction. The financing question remains open after that read, though it does explain why the calls are bid.
Cloudflare Sits Out the Debate Cloudflare stock rallied earlier this week on an OpenAI security partnership and is holding those gains today. It sells AI-adjacent services across an existing network rather than funding fresh data-center capacity with debt, which is why its stock is barely moving while the capital-heavy names sell off. Revenue in Cloudflare’s most recent quarter accelerated to $696.06 million, up 35.9% year over year, and CEO Matthew Prince stated that “Cloudflare sits at the center of this paradigm shift” as web traffic moves to AI agents.
Guidance is also lifting. Cloudflare raised its FY2026 outlook to $2.864 billion to $2.87 billion in revenue and non-GAAP EPS of $1.25 to $1.26. The asset-light model separates it from the operators funding physical GPU capacity through debt markets.
What to Watch Oracle’s earnings release after the closing bell could set the tone for the AI infrastructure trade into Friday. Investors can watch for whether management addresses the $40 billion financing plan directly and how much of the backlog remains tied to a single customer, according to Guggenheim.
For CoreWeave, the read is starker. A stock that can’t rally on its best-known bear covering and a CEO publicly defending deal economics is telling you the argument has moved from demand to the balance sheet, and one’s position sizing should reflect that leverage.
Contact [email protected] for any questions or corrections.
Cloudflare vyskočila o více než 10 % po oznámení partnerství s OpenAI a SpaceX. Firma zároveň uvedla, že tržby za 2. čtvrtletí vzrostly meziročně o 36 % na 696,1 milionu USD.
Two blockbuster partnerships ignite fresh optimism around this cybersecurity stock Summary
Cloudflare shares surged as investors bet that relationships with OpenAI and SpaceX could accelerate demand across its security and AI-agent infrastructure
Cloudflare NET shares surged more than 10% to about $313 Wednesday as investors embraced new partnerships linking the cybersecurity company with OpenAI and SpaceX SPCX.
The rally reflects expectations that Cloudflare's NET global network could become valuable as AI agents write code, run applications and create new security threats. Its second-quarter revenue rose 36% year over year to $696.1 million, giving investors evidence that demand was already accelerating before the latest announcements.
Cloudflare NET operates a network spanning more than 300 data centers, routing traffic while protecting websites, applications and corporate systems.
Cloudflare Connects AI Growth With CybersecurityOn Sept. 3, Cloudflare NET introduced Vulnerability Discovery and Remediation, combining live traffic intelligence from its network with OpenAI's Daybreak cybersecurity models. The service analyzes code, identifies dangerous vulnerabilities and can draft fixes automatically.
Cloudflare NET says organizations can identify and block high-risk attacks at the network edge before criminals exploit them. The pitch is timely because rapidly generated AI code can increase software output while potentially multiplying security flaws.
A separate partnership lets customers of SpaceXAI, the AI unit of SpaceX SPCX, run Cursor Cloud Agents inside Cloudflare Sandboxes. Those isolated environments allow companies to deploy coding agents under customer-controlled rules, addressing concerns about security, access and data handling.
The agreements follow Cloudflare's NET launch of Adaptive Intelligence, a detection engine designed to react quickly when AI-powered bots breach defenses. Together, the products position the company as infrastructure for both building AI agents and protecting systems from them.
Wall Street maintains a Strong Buy consensus on Cloudflare NET, based on 22 Buy ratings, five Holds and one Sell. The average $348 target implies about 11% upside from Wednesday's price.
After a 10% surge, expectations are higher. Investors now need evidence that partnerships translate into durable revenue, stronger customer spending and improving operating leverage rather than publicity alone.
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
Cloudflare oznámila podporu pro Cursor Cloud Agents v prostředí Cloudflare Sandboxes, takže AI kódovací agenti mohou běžet v bezpečném prostředí pod kontrolou zákazníka. Zachovává se workflow Cursoru, ale práce probíhá v izolovaných sandboxech.
Cloudflare, Inc. (NYSE: NET), the leading connectivity cloud company, today announced support for running Cursor Cloud Agents on Cloudflare Sandboxes, giving developers and platform teams a new way to run AI coding agents in secure, customer-controlled environments.
The integration builds on Cloudflare’s work with other leading AI agent platforms, including Devin Outposts and Claude Managed Agents, and reflects a simple shift in how agentic software is being deployed: developers want to keep the tools they already use, while enterprises want control over where agent work runs and how it accesses code, systems, and secrets. Cloudflare Sandboxes are becoming a natural execution layer for that model: secure, isolated environments where agent work can run closer to a customer’s code, systems, and security requirements.
Cursor Cloud Agents let developers assign coding tasks from the Cursor app, cursor.com, or the Cursor mobile app. With Cursor Self-Hosted Machines, Cursor continues to run the agent loop, including inference, planning, and orchestration, while the agent gets work done on a customer-selected worker. In SpaceXAI’s model, a worker is the customer-operated machine or environment that executes agent tasks; it is separate from Cloudflare Workers, Cloudflare’s serverless developer platform. With Cloudflare Sandboxes, that self-hosted worker can run in a sandbox environment in the customer’s Cloudflare account.
Developers keep the Cursor workflow they already use: they still start and manage agents from Cursor, and Cursor still routes the work and streams results back to the user. What changes is where the work happens. Tool calls, including terminal, filesystem, and browser actions, run inside customer-controlled Cloudflare sandbox environments, which matters for teams with strict requirements around where code, build caches, and secrets live. For organizations using Cursor Self-Hosted Machines across different execution environments, Cloudflare Sandboxes provide another controlled option for running agent workloads.
“Developers want powerful AI tools that fit naturally into their workflows, and enterprises need those tools to run in environments they control,” said Dane Knecht, Chief Technology Officer at Cloudflare. “Cloudflare Sandboxes gives teams the freedom to use the AI tools they prefer while giving organizations a secure, isolated place to run agent work. Bringing Cursor Cloud Agents to Cloudflare Sandboxes is another step toward making Cloudflare the execution layer for the next generation of agentic applications.”
Cursor Cloud Agents run via self-hosted machines use an outbound connectivity model. A Cursor worker runs the Cursor CLI and opens a long-lived outbound HTTPS connection to Cursor’s backend, where agent tool calls are sent over that connection. Cursor does not need to open an inbound connection into the customer’s network; teams can use the quickstart guide to configure a Cursor worker and connect it to their environment.
"SpaceXAI’s goal is to make agents useful wherever developers work,” said Toni Adams, Sr Director of Partnerships at SpaceXAI. “Self-Hosted Machines let teams keep Cursor workflows across desktop, web, and mobile while routing work to infrastructure they operate. Cloudflare Sandboxes give those teams an enterprise-grade option for running agent workloads in a controlled environment.”
The integration supports Cursor’s Self-Hosted Machines workflow for individual developers and teams. Developers can connect a single worker through My Machines, while enterprise teams can use Cursor self hosted worker pools as named routing targets that allow new agent chats to wait until an available worker claims them. Teams can create pools for different execution environments, then use pool orchestration to watch demand, start worker capacity when needed, and release it when sessions end.
During self-hosted operation, repositories, build caches, and secrets stay on the customer's machines. File chunks read by the model during inference, along with Cloud Agent artifacts such as screenshots, videos, and log references, are uploaded so they can appear in pull requests and dashboards. Teams that want to integrate self-hosted machine status or pool routing into their own systems can also use the Cloud Agents API.
Developers and platform teams can learn more about Cursor Self-Hosted Machines by visiting the Cloudflare tutorial, the Cursor quickstart, or the Cursor worker pools, pool orchestration, and Cloud Agents API documentation. To see how Cloudflare Sandboxes support other agent platforms, read more about Devin Outposts on Cloudflare and Claude Managed Agents on Cloudflare.
About Cloudflare
Cloudflare, Inc. (NYSE: NET) is the leading connectivity cloud company. It empowers organizations to make their employees, applications and networks faster and more secure everywhere, while reducing complexity and cost. Cloudflare’s connectivity cloud delivers the most full-featured, unified platform of cloud-native products and developer tools, so any organization can gain the control they need to work, develop, and accelerate their business.
Powered by one of the world’s largest and most interconnected networks, Cloudflare blocks billions of threats online for its customers every day. It is trusted by millions of organizations – from the largest brands to entrepreneurs and small businesses to nonprofits, humanitarian groups, and governments across the globe.
Learn more about Cloudflare’s connectivity cloud at cloudflare.com/connectivity-cloud. Learn more about the latest Internet trends and insights at https://radar.cloudflare.com.
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Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements involve substantial risks and uncertainties. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “should,” “expect,” “explore,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential,” or “continue,” or the negative of these words, or other similar terms or expressions that concern Cloudflare’s expectations, strategy, plans, or intentions. However, not all forward-looking statements contain these identifying words. Forward-looking statements expressed or implied in this press release include, but are not limited to, statements regarding the capabilities and effectiveness of Cloudflare Sandboxes and Cloudflare’s other products and technology, the benefits to Cloudflare’s customers from using Cloudflare Sandboxes and Cloudflare’s other products and technology, Cloudflare’s technological development, future operations, growth, initiatives, or strategies, and comments made by Cloudflare’s made by Cloudflare’s Chief Technology Officer and others. Actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, risks detailed in Cloudflare’s filings with the Securities and Exchange Commission (SEC), including Cloudflare’s Quarterly Report on Form 10-Q filed on August 6, 2026, as well as other filings that Cloudflare may make from time to time with the SEC.
The forward-looking statements made in this press release relate only to events as of the date on which the statements are made. Cloudflare undertakes no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law. Cloudflare may not actually achieve the plans, intentions, or expectations disclosed in Cloudflare’s forward-looking statements, and you should not place undue reliance on Cloudflare’s forward-looking statements.
Cloudflare ve 2. čtvrtletí přidala téměř 2 miliony vývojářů a platforma Workers přesáhla 7,4 milionu uživatelů. Firma uvádí, že Workers už se stává významným přispěvatelem k tržbám.
Key Takeaways Cloudflare added nearly 2 million developers in Q2, bringing its platform total above 7.4 million.Workers is gaining enterprise traction through pool-of-funds contracts and growing customer usage.AI agent adoption could boost Workers as customers build, deploy and scale AI agents on the platform. Cloudflare’s (NET - Free Report) Workers developer platform is becoming an increasingly important part of its growth strategy. During the second quarter of 2026, the company said its Workers platform continued to drive new customer adoption. Cloudflare ended the second quarter with more than 7.4 million developers on its platform, adding nearly two million developers in the second quarter alone. This was more than the 1.5 million developers added during all of 2025.
Cloudflare’s Workers developer platform is also gaining traction among enterprise customers. Cloudflare said more customers are including Workers in pool-of-funds contracts, allowing them to use the developer platform along with services such as Zero Trust and reverse proxy. For example, an APAC technology company signed a $4 million pool-of-funds contract for Workers after previously signing an $8.7 million Application Services contract. Another technology company signed a $6 million Workers contract to support its AI agent capabilities.
Cloudflare said the Workers platform has moved beyond being mainly an adoption-focused product and has become a meaningful contributor to revenues. The company also noted that the Workers platform is driving consumption as customers use it alongside its security and networking products. This creates an opportunity for Cloudflare to expand its relationships with existing customers as their developer teams increase their use of the platform.
The growing use of AI agents could provide another boost to the Workers Platform, which is designed to help customers build, deploy and scale AI agents. With AI workloads increasing and more developers joining the platform, Workers could become a key contributor to Cloudflare’s overall growth. The Zacks Consensus Estimate for Cloudflare’s 2026 and 2027 revenues indicates year-over-year growth of 32.3% and 28.5%, respectively.
Cloudflare Faces Tough CompetitionCompetitors like Palo Alto Networks (PANW - Free Report) and Zscaler (ZS - Free Report) are also gaining ground through platform expansion and AI innovation.
Palo Alto Networks’ wide range of innovative products, strong customer base and growing opportunities in areas like Zero Trust and SASE continue to support its long-term growth potential. In the third quarter of fiscal 2026, SASE was Palo Alto Networks’ fastest-growing segment, with SASE Annual recurring revenues up 40% year over year. PANW's SASE business is benefiting from strong customer demand for cloud-delivered networking and security solutions as enterprises continue to support hybrid work environments and secure access to cloud applications.
Zscaler is seeing strong adoption of its Zero Trust Everywhere strategy, which is helping the company expand beyond its traditional user security offerings. The strategy combines security for users, cloud workloads and branch locations on a single platform. The company ended the third quarter of fiscal 2026 with more than 700 Zero Trust Everywhere enterprises, up from more than 550 in the previous quarter. As more customers adopt multiple products across the platform, Zero Trust Everywhere could help Zscaler increase customer spending, win larger deals and support long-term growth.
NET’s Price Performance, Valuation & EstimatesShares of Cloudflare have jumped 40.7% in the year-to-date period against the Zacks Internet – Software industry’s decline of 4.5%.
NET YTD Price Return Performance
Image Source: Zacks Investment Research
From a valuation standpoint, NET trades at a forward price-to-sales ratio of 28.87, significantly higher than the industry’s average of 3.91. The Zacks Value Score of F suggests that NET stock is overvalued.
NET Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for NET’s 2026 earnings is pegged at $1.26 per share, revised up by a penny over the past seven days, indicating a 35.5% increase from the previous year.
Image Source: Zacks Investment Research
Cloudflare currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cloudflare získala FedRAMP High pro Cloudflare for Government a může nově nabízet citlivé služby vládním zákazníkům. Už jej používá více než 100 federálních agentur.
Cloudflare just cleared the government's highest civilian security bar, giving it access to contracts it was previously locked out of entirely. Whether that clearance turns into the kind of compounding federal revenue Palantir built depends on a template that has…
Cloudflare has secured FedRAMP High authorization for Cloudflare for Government, and the timing matters more than the acronym suggests. That clearance allows federal customers to run highly sensitive workloads on the platform, including those related to national security, critical infrastructure, and financial systems.
More than 100 federal agencies already use Cloudflare, including the departments of State, Justice, Homeland Security, Energy, and Commerce. The question the headline poses is whether that installed base plus a higher clearance level makes Cloudflare (NYSE:NET | NET Price Prediction) the next Palantir (NASDAQ:PLTR). The straightforward answer is that it earns Cloudflare the right to compete for the kind of contracts Palantir already wins, which is quite different from winning them.
What FedRAMP High Actually Buys FedRAMP High is the top civilian bar for cloud services handling sensitive federal data, above the Moderate and Low tiers. Achieving High means Cloudflare can sell Zero Trust security, application services, and developer tools into workloads previously off-limits, layered on top of the web performance and DDoS protection agencies already buy.
The authorization announcement and the FedRAMP Marketplace listing confirm the clearance, but they do not produce revenue on their own. Cloudflare still has to displace incumbents contract by contract.
The Q2 call showed what that looks like when it works. Management described a large U.S. federal agency signing a five-year, $7.7 million contract for Magic Transit and Network Firewall after a legacy provider’s outage locked over 100,000 users out of a mission-critical system for days.
That is the template Cloudflare needs to repeat: an incident, a proof point, and then a platform decision. The pattern of an early government foothold compounding into something much larger is exactly what we reverse-engineered from prior tech winners in a free playbook you can grab here.
Interrogating the Palantir Comparison Palantir and Cloudflare share a story arc in which a government beachhead compounds into larger, longer-lived enterprise deals. Their economics differ. Palantir sells bespoke data integration and AI software at very high gross margins, while Cloudflare runs a network with real capital costs and reported a 71.8% GAAP gross margin in Q2, down from 74.9% a year earlier.
Investors are already pricing in the comparison. NET trades at a price-to-sales ratio of 43.69, with a forward P/E near 217x, making it richer than most infrastructure peers. The 52.09% year-to-date rally to $299.84 suggests the market is pricing in optionality rather than questioning it.
What to Watch From Here Revenue growth is accelerating. Q2 came in at $696.06 million, up 35.87% year-over-year, the fourth consecutive quarter of acceleration, and management raised full-year guidance to $2.864 billion to $2.870 billion. Large-customer momentum matters more than the federal narrative in the near term, and Cloudflare ended the quarter with 4,698 customers paying more than $100,000 per year, up 27%.
The restructuring is the wildcard. Cloudflare took a $150.69 million charge tied to what CEO Matthew Prince calls an “agentic AI-first operating model,” which included a workforce reduction of roughly 1,100 people. That is a bet that agents are the future users of the web.
Prince framed the opportunity directly: “As the web shifts to AI answer engines and agent-driven commerce, we are seeing a fundamental rewrite of the Internet for machine-to-machine traffic.” The real tests are the pending Department of Defense Impact Level 4 authorization and whether FedRAMP High converts into named agency wins over the next four quarters. Until then, treat this as permission to compete, priced as if the wins are already booked.
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Cloudflare za poslední tři měsíce vzrostl o 65,4 % díky silné poptávce po bezpečnosti v oblasti AI a růstu počtu velkých zákazníků. Tržby ve 2. čtvrtletí stouply meziročně o 36 % na 696,1 milionu USD.
Key Takeaways Cloudflare is benefiting from rising AI security demand across SASE and Zero Trust offerings.Large customers drove growth, with 120% dollar-based net retention and revenues up 36% year over year.Cloudflare's premium valuation reflects strong investor confidence in AI security and customer growth. Cloudflare Inc. (NET - Free Report) shares have surged 65.4% in the past three months, outperforming the Zacks Internet - Software industry’s appreciation of 13.3%. The stock also outperformed its industry peers, including F5 Networks, Inc. (FFIV - Free Report) , BlackBerry Limited (BB - Free Report) and Allot Ltd. (ALLT - Free Report) . In the past three months, shares of F5 Networks and BlackBerry have gained 16.5% and 42.5%, respectively, while Allot shares have plunged 9.7%.
The outperformance of Cloudflare’s shares raises the question: Does it still have room to run, or is it time for investors to consider taking profits? Let’s find out.
3 Month Price Return Performance
Image Source: Zacks Investment Research
AI Security Demand Bodes Well for Cloudflare's ProspectsCloudflare is seeing stronger demand for its SASE and Zero Trust offerings as companies look to adopt artificial intelligence (AI) more securely. Management said the key reason big companies are approaching Cloudflare is that they know they need AI but want to deploy it securely. This is creating new opportunities for the company’s SASE and Zero Trust platforms, particularly as enterprises need to secure AI agents in addition to human users.
Cloudflare believes its developer-focused approach gives it an advantage in this market. Management said companies will have more AI agents working across their organizations and will need a security model designed for these agents. In one example, a large U.K. government agency was evaluating a first-generation Zero Trust provider but reconsidered the project after discussing its plans for AI agents with Cloudflare. Management said the agency canceled its existing request for proposal and is now reevaluating the project with an agents-first approach. Cloudflare believes its developer-focused approach has helped its SASE and Zero Trust platforms gain significant share over the past six months.
Customer wins in the quarter also show demand for Cloudflare’s security platform. A Fortune 100 technology company signed a $5.2 million, three-year contract for Cloudflare’s full SASE portfolio. The customer is replacing legacy VPNs and virtual desktops and moving its global workforce to a single Zero Trust platform. Cloudflare beat two first-generation Zero Trust vendors in the deal because of its network performance and unified management, with the customer expecting to operate the services with roughly one-third the staff.
The broader shift toward AI could therefore support Cloudflare’s SASE and Zero Trust growth. The company is also seeing enterprises replace fragmented security tools with its unified platform. Sustaining its recent market-share gains will depend on how well Cloudflare can convert growing AI security needs into larger and longer-term enterprise contracts. The Zacks Consensus Estimate for Cloudflare’s 2026 and 2027 revenues indicates year-over-year growth of 31.1% and 28.2%, respectively.
Image Source: Zacks Investment Research
Large-Customer Growth Boosts Cloudflare's ProspectsCloudflare is seeing strong momentum among its largest customers, which is driving strong revenue growth and customer retention. In the second quarter of 2026, the company ended with 4,698 customers generating more than $100,000 in annual revenues, up 27% year over year. Cloudflare added 282 large customers during the second quarter and a record 986 net additions in large customers, year over year. Each large-customer group, from $100,000 to more than $5 million in annual revenues, posted record year-over-year net additions in the second quarter of 2026.
Large customers are also becoming a bigger part of Cloudflare’s business. They accounted for 73% of total revenues in the second quarter, up from 71% a year ago. Strong expansion among these customers helped push dollar-based net retention to 120%, up from 118% in the previous quarter and 114% a year ago. This shows that existing customers are increasing their spending on Cloudflare’s products, while the company continues to add new large accounts.
The strong performance of large customers is supporting Cloudflare’s overall financial growth. Second-quarter revenues increased 36% year over year to $696.1 million. Management said new customer bookings grew at their fastest rate in more than five years, while pipeline generation increased at its fastest sequential pace in five years. Cloudflare added more than 80,000 paying customers during the second quarter, resulting in 74% year-over-year growth in its paying customer base.
The above-mentioned factors show that Cloudflare’s growing large-customer base could support future revenue growth if these customers continue to expand their use of Cloudflare's platform. The company is also seeing customers adopt multiple products, including its developer platform, Zero Trust and application security offerings. As of now, maintaining 120% net retention will depend on continued expansion among existing customers.
Long-Term Prospects Justify NET’s Premium ValuationCloudflare is currently trading at a higher price-to-sales (P/S) multiple compared with the industry. NET’s forward 12-month P/S ratio sits at 32.97X, higher than the industry’s forward 12-month P/S ratio of 4.06X.
NET Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
NET stock also trades at a higher P/S multiple compared with other industry peers, including F5 Networks, BlackBerry and Allot. At present, F5 Networks, BlackBerry and Allot have P/S multiples of 6.46X, 8.09X and 2.92X, respectively.
NET’s rally reflects strong investor confidence in AI security demand and large-customer growth, putting it above industry and peers in terms of valuation, reflecting the high growth expectations of the company in the long term.
Key Technical Indicator Signals Bullish Trend for NETCloudflare shares are trading above their 50-day and 200-day moving averages, a bullish technical signal that indicates the potential for continued upward momentum in the near term.
NET 50-Day & 200-Day Simple Moving Averages
Image Source: Zacks Investment Research
Conclusion: Buy Cloudflare Stock Right NowCloudflare’s strong growth in AI security, SASE and Zero Trust, along with rising demand from large customers, supports its long-term growth outlook. The company’s strong revenue growth estimates and improving customer spending support the outlook for continued growth. Further, the stock’s valuation reflects high growth expectations, as Cloudflare remains well positioned to benefit from rising AI security demand over the long term.
Currently, Cloudflare carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cloudflare is the latest company to join the race to build a new web browser. But instead of pitching a Chrome alternative to consumers, the internet infrastructure provider launched Kitesurf, a cloud-hosted browser designed specifically for AI agents.
AI software is evolving from chatbots that answer questions to agents that can complete tasks on users’ behalf. Browsers are a critical part of this transition, as they’ll need to navigate the web and use websites, as humans do.
Unlike traditional web browsers built for humans, a browser built for AI agents doesn’t care about visual elements, like themes, tabs, or browser extensions, Cloudflare explained in its announcement. A browser designed for AI agents needs to manage context windows, performance, token costs, and scalability. It also faces a different threat model because an AI browser could be subject to vulnerabilities like prompt injection attacks and more, the company noted.
With Kitesurf, AI developers will be able to build software that can navigate websites, fill out forms, and complete other browser-based tasks, without having to build their own browser software.
Cloudflare says it decided to build Kitesurf just 12 weeks ago, and it runs entirely on top of the company’s serverless platform, called Workers. Kitesurf is available for free while in beta in Browser Run, which lets developers programmatically control and interact with headless browser instances on Cloudflare’s network.
For developers, Cloudflare’s pitch is that this enables AI agents to use the web more efficiently while using less computing power than Chromium, which keeps costs down.
“Kitesurf is significantly more efficient in CPU and memory consumption than Chromium for common agentic tasks like screenshots and HTML extraction,” according to the company.
Image Credits:Cloudflare The browser itself was built from other technologies, including a modular rendering engine from Blitz; Firefox’s CSS parser, Stylo; and Boa JS, a Rust ECMAScript engine. Everything else runs inside Cloudflare Workers. Although still new, Cloudflare says Kitesurf already passes around 215,000+ web platform tests, and it’s adding hundreds more, passing tests every week.
Cloudflare also credited the open source Rust headless engine, Obscura, for inspiring it to develop Kitesurf, noting that the first proof of concept was a port of Obscura to Workers.
The company said the browser correctly renders pages like TodoMVC, a popular benchmark application for comparing JavaScript frameworks, along with Wikipedia, Hacker News, the Cloudflare Blog, and much of the Cloudflare dashboard.
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Cloudflare ve 2. čtvrtletí zvýšila počet zákazníků s útratou nad 100 000 USD ročně na 4 698, což je meziročně o 27 % více, a čistá retence dosáhla 120 %.
Firma zároveň uvedla, že Workers a agentic AI táhnou růst, a pro 3. čtvrtletí čeká tržby ve výši 736 až 737 milionů USD.
Key Takeaways Cloudflare ended Q2 with 4,698 $100K customers, up 27%, as net retention reached 120%.Workers, agentic workloads and go-to-market execution helped drive current RPO up 35% year over year.NET guided Q3 revenues to $736M-$737M as usage-based contracts add quarter-to-quarter variability. Cloudflare, Inc. (NET - Free Report) used its second-quarter 2026 earnings call to frame Workers, agentic AI and large-customer expansion as key growth drivers. CEO Matthew Prince also emphasized improving sales productivity and broader adoption across customer tiers.
CFO Thomas Seifert paired that momentum with a caution on forecasting: Cloudflare’s growing mix of consumption, pool-of-funds and other usage models can make quarter-to-quarter revenues less predictable even as multi-quarter trends remain strong.
NET Sees Workers and Large-Customer MomentumPrince said Cloudflare ended the quarter with 4,698 customers spending more than $100,000 annually, up 27% year over year, while dollar-based net retention reached 120%. The platform topped 7.4 million developers after adding nearly 2 million in the second quarter.
The company’s second-quarter 2026 adjusted earnings of $0.29 per share topped the Zacks Consensus Estimate of $0.27. Revenues of $696.1 million also exceeded the Zacks Consensus Estimate of $665.4 million by 4.60%.
Seifert said strength came from Workers, agentic workloads, large-customer momentum and go-to-market execution. Current RPO grew 35% year over year.
Cloudflare Expands Agentic Commerce AmbitionsPrince said more than half of traffic across Cloudflare’s network was nonhuman in the second quarter, reflecting rapid growth in AI-agent activity. He framed that shift as a major change in how Internet traffic will be generated and monetized.
The company introduced Monetization Gateway, wallets and cloudflare.pay as building blocks for agent-driven commerce. Prince said the goal is to let agents access resources, establish trust and pay autonomously.
Prince also highlighted a research pilot with OpenAI aimed at a more sustainable relationship between AI companies and content owners. He said additional initiatives are planned over the coming months.
NET Guidance Reflects Growth With More VariabilitySeifert guided third-quarter 2026 revenue to $736 million to $737 million, with operating income of $129 million to $130 million and diluted earnings of $0.34 per share.
For full-year 2026, he expects revenue of $2.864 billion to $2.870 billion, operating income of $443 million to $445 million and diluted earnings of $1.25 to $1.26 per share.
Asked about pool-of-funds renewals by a Morgan Stanley analyst, Seifert said Cloudflare is shifting from a ratable SaaS model toward more pool-of-funds, consumption and T-shirt-size structures. Faster usage and renewals can raise quarter-to-quarter variability, supporting prudent guidance.
Cloudflare Q&A Highlights Security and MonetizationA Morgan Stanley analyst asked about securing AI agents. Prince said demand is already visible, with large organizations increasingly asking how to deploy AI securely and with agent-aware controls across SASE and Zero Trust.
A Citi analyst asked about Workers monetization. Prince said Workers has moved beyond an adoption-focused phase and has become a meaningful revenue contributor, with more pool-of-funds contracts incorporating the platform.
An RBC Capital Markets analyst asked about Cloudflare OS. Prince said its security, auditability and control framework has helped extend AI tools beyond developers to finance, legal and procurement.
NET Holds the Line on Capital EfficiencyA Scotiabank analyst asked why Cloudflare is not joining the AI infrastructure spending race. Prince said commodity compute is not an attractive model and emphasized extracting more utilization from each capital dollar.
Non-GAAP gross margin was 73.1%, and Seifert said he expects it to stabilize around that level while total unit economics expand in the second half.
Seifert said full-year restructuring charges are expected to be up to $165 million, with up to $130 million cash-related, higher than initially anticipated. In response to a William Blair analyst, he said Cloudflare is pacing ahead of its goal of GAAP profitability by the end of 2028.
Cloudflare Keeps Focus on ExecutionPrince and Seifert maintained a confident posture on demand while tying Cloudflare’s direction to disciplined execution and capital efficiency.
Their priorities center on converting developer adoption into revenue, deepening large-customer use, building agentic commerce infrastructure and improving unit economics as the contract mix evolves.
NET's Zacks Signals Point to a Mixed Style ProfileNET carries a Zacks Rank #2 (Buy) at present. Its Growth Score of A is the strongest Style Score signal, while the Value Score of F, Momentum Score of C and VGM Score of C indicate a mixed profile. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Within the Zacks framework, top-ranked stocks pair most favorably with A or B Style Scores. NET’s A Growth Score fits that preference, while its other grades do not. The Zacks Rank can change as earnings estimates are revised after the reported results.
The logo of digital security firm Cloudflare is displayed over a booth at the Web Summit digital trade show in Vancouver, British Columbia, Canada, May 12, 2026. REUTERS/Chris Helgren Purchase Licensing Rights, opens new tab
Aug 7 (Reuters) - Cloudflare (NET.N), opens new tab shares rose before the bell on Friday after the cloud services firm raised its annual forecasts, betting that resilient AI-driven demand will sustain traffic across its network.
Quarterly results of Cloudflare, whose shares were last up 16.2% at $330.51, follow Amazon.com's (AMZN.O), opens new tab strongest cloud growth in more than four years. Amazon noted that it won't have enough capacity to meet all demand in 2026.
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The two reports underscore that software companies remain key winners of the ongoing scramble to build AI infrastructure.
Cloudflare now expects full-year revenue of $2.86 billion to $2.87 billion, up from its prior expectation of $2.805 billion to $2.813 billion. The new forecast, released after markets closed on Thursday, exceeds analysts' average estimate of $2.81 billion, according to LSEG-compiled data.
Analysts at Morgan Stanley said the company's Workers developer platform was its fastest-growing segment, amid a shift toward a usage-based model, expecting the company to exceed its outlook.
Cloudflare's also increased its adjusted per share earnings forecast to a range of $1.25 to $1.26 from its earlier estimate of $1.19 to $1.20.
Analysts also highlight that Cloudflare stands to benefit as cybersecurity becomes more necessary as cutting-edge AI models reshape the cyber-risk landscape.
Cloudflare shares have gained over 44% so far this year, compared with a near-77% rise in rival CrowdStrike (CRWD.O), opens new tab and a 95% jump in Palo Alto Networks (PANW.O), opens new tab. The stock trades at over 190 times its forward price-to-earnings ratio, compared with over 145 for CrowdStrike, according to LSEG-compiled data.
The company, analysts at RBC Capital Markets note, "has multiple, durable avenues to AI-monetization over the long-to-medium term that warrants a premium valuation."
Reporting by Purvi Agarwal in Bengaluru; Editing by Joyjeet Das
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Cloudflare spustila AEO Visibility Dashboard, který značkám ukazuje, zda je AI asistenti citují, zmiňují a doporučují. Nástroj je nyní v raném přístupu.
New AEO Visibility Dashboard gives brand marketers a clear view of how AI assistants are citing, mentioning, and ranking them
SAN FRANCISCO--(BUSINESS WIRE)--Cloudflare, Inc. (NYSE: NET), the leading connectivity cloud company, today released the AEO Visibility Dashboard, the newest addition to its Answer Engine Optimization (AEO) Suite. The tool gives website owners a direct view into whether AI assistants are recommending their business when customers ask relevant questions – something that, until now, has been invisible to most site owners. The AEO Visibility Dashboard joins Agent Readiness, the existing tool in the suite that checks whether AI agents can find and read a site in the first place. Together, this gives marketers the data they need to understand and optimize their content.
AI assistants have become a primary discovery channel for consumers, but brands have had no equivalent of a search ranking to show where they stand. When a customer asks an AI for a recommendation and gets a name back, there has been no signal to tell a brand whether it was recommended, briefly mentioned, or skipped entirely. Most tools attempt to fill that gap by only sending test prompts to AI chatbots and sampling the responses — a method limited in scale and prone to inconsistency if not paired with other data signals. Cloudflare's position is different: because it operates at the network layer between AI platforms and the websites they access, observing actual crawl and referral activity directly, across millions of sites. The data creates deeper, more transparent insights than sampling test prompts alone so brands can make more informed decisions.
"Being discoverable used to mean ranking on a page. That's not enough anymore. The agentic era is here, and the moments that matter, like when someone asks an AI for a recommendation and gets an answer back, are happening at scale, invisibly, without most brands knowing if they're in the conversation at all,” said Stephanie Cohen, Chief Strategy Officer at Cloudflare. “Cloudflare sits at the network layer. We see actual signals: real crawl activity, real referrals, what AI systems are genuinely doing across millions of sites. That's what powers these tools. Brands can finally get a real answer to the question they've been asking: how am I showing up, and where?"
Cloudflare built its AEO Suite on a foundational commitment: that site owners should have visibility into how their content is being used, and control over what they choose to share. That means grounding AEO analysis in actual network-layer signals like real crawl activity and real referral data from Cloudflare's own infrastructure. Whether a content owner's goal is to protect and monetize their content, or to maximize discovery in the agentic era, the AEO Suite is designed to serve those interests on their terms. Now, any brand can get the quality data they need in order to:
Stop guessing where to invest content: Citation Rate shows which AI platforms are pulling from a brand's site as a trusted source and which ones are ignoring it. Marketers can direct budget toward testing and optimizing the content and sites that actually drive AI recommendations, not the ones that don't. Diagnose the right problem before spending on the wrong fix: Mention Rate reveals whether AI assistants are naming a brand even when they don't cite its site. A brand that gets mentioned but not cited has an authority problem, not an awareness problem. That distinction changes the strategy entirely. Measure the quality of AI coverage, not just presence: Prominence tracks how much of an AI answer is actually attributed to a brand, and where in the response it appears. A passing mention at the end of a long answer is not the same as a strong, specific recommendation. Marketers get a number that reflects the difference. Track competitive position on the questions that matter: Share of Voice shows how a brand stacks up against competitors across the specific questions its customers are asking AI assistants and whether that position is improving or eroding over time. The AEO Visibility Dashboard Tool joins Agent Readiness, the existing tool in the AEO Suite that checks whether AI systems can find and read a brand's site in the first place. Agent Readiness checks whether an AI agent can actually reach and use a site -- whether it has permission to crawl, a sitemap to navigate, content it can read in a structured format, and, for more advanced use cases, interfaces it can call directly. The AEO Visibility Dashboard then measures what happens downstream: given that agents can reach the site, are they recommending it?
The AEO Visibility Dashboard is available in early access today. Businesses can request access from the Overview tab in the Cloudflare dashboard. Agent Readiness is available in the same location. To learn more, check out the blog below:
Blog: From ranking to recommended: get your site ready to thrive in the age of AI agents About Cloudflare
Cloudflare, Inc. (NYSE: NET) is the leading connectivity cloud company. It empowers organizations to make their employees, applications and networks faster and more secure everywhere, while reducing complexity and cost. Cloudflare’s connectivity cloud delivers the most full-featured, unified platform of cloud-native products and developer tools, so any organization can gain the control they need to work, develop, and accelerate their business.
Powered by one of the world’s largest and most interconnected networks, Cloudflare blocks billions of threats online for its customers every day. It is trusted by millions of organizations – from the largest brands to entrepreneurs and small businesses to nonprofits, humanitarian groups, and governments across the globe.
Learn more about Cloudflare’s connectivity cloud at cloudflare.com/connectivity-cloud. Learn more about the latest Internet trends and insights at radar.cloudflare.com.
Follow us: Blog | X | LinkedIn | Facebook | Instagram
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements involve substantial risks and uncertainties. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “should,” “expects,” “explores,” “plans,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” or “continues,” or the negative of these words, or other similar terms or expressions that concern Cloudflare’s expectations, strategy, plans, or intentions. However, not all forward-looking statements contain these identifying words. Forward-looking statements expressed or implied in this press release include, but are not limited to, statements regarding the capabilities and effectiveness of AEO Suite and Cloudflare’s other products and technology, the benefits to Cloudflare’s customers from using AEO Suite and Cloudflare’s other products and technology, the timing of when AEO Suite or any of its related features will be generally available to all current and potential Cloudflare customers, the timing of when AEO Suite or any of its related features will be developed and available in beta form, or generally available, to all current and potential Cloudflare customers, Cloudflare’s technological development, future operations, growth, initiatives, or strategies, and comments made by Cloudflare’s Chief Strategy Officer and others. Actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, risks detailed in Cloudflare’s filings with the Securities and Exchange Commission (SEC), including Cloudflare’s Quarterly Report on Form 10-Q filed on May 8, 2026, as well as other filings that Cloudflare may make from time to time with the SEC.
The forward-looking statements made in this press release relate only to events as of the date on which the statements are made. Cloudflare undertakes no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law. Cloudflare may not actually achieve the plans, intentions, or expectations disclosed in Cloudflare’s forward-looking statements, and you should not place undue reliance on Cloudflare’s forward-looking statements.
SAN FRANCISCO--(BUSINESS WIRE)--Cloudflare, Inc. (NYSE: NET), the leading connectivity cloud company, today announced financial results for its second quarter ended June 30, 2026.
“We delivered a stellar second quarter, highlighted by revenue accelerating to $696.1 million, up 36% year-over-year, and record growth in total paying customers, large customers, and developers on our platform,” said Matthew Prince, co-founder & CEO of Cloudflare. “As the web shifts to AI answer engines and agent-driven commerce, we are seeing a fundamental rewrite of the Internet for machine-to-machine traffic. Cloudflare sits at the center of this paradigm shift—building the infrastructure, controls, developer tools, and payment rails for the Agentic Internet. The business model of the web is changing, and no company is better positioned than Cloudflare to help define its future.”
Second Quarter Fiscal 2026 Financial Highlights
Revenue: Total revenue of $696.1 million, representing an increase of 36% year-over-year. Gross Profit: GAAP gross profit was $499.5 million, or 71.8% gross margin, compared to $383.6 million, or 74.9%, in the second quarter of 2025. Non-GAAP gross profit was $508.9 million, or 73.1% gross margin, compared to $390.7 million, or 76.3%, in the second quarter of 2025. Operating Income (Loss): GAAP loss from operations was $205.7 million, or 29.6% of revenue, compared to $67.3 million, or 13.1% of revenue, in the second quarter of 2025. Non-GAAP income from operations was $96.1 million, or 13.8% of revenue, compared to $72.3 million, or 14.1% of revenue, in the second quarter of 2025. Net Income (Loss): GAAP net loss was $170.0 million, compared to $50.4 million in the second quarter of 2025. GAAP net loss per basic and diluted share was $0.48, compared to $0.15 in the second quarter of 2025. Non-GAAP net income was $107.8 million, compared to $75.1 million in the second quarter of 2025. Non-GAAP net income per diluted share was $0.29, compared to $0.21 in the second quarter of 2025. Cash Flow: Net cash flow from operating activities was $117.6 million, compared to $99.8 million for the second quarter of 2025. Free cash flow was $56.4 million, or 8% of revenue, compared to $33.3 million, or 6% of revenue, in the second quarter of 2025. Cash, cash equivalents, and available-for-sale securities were $4,162.8 million as of June 30, 2026. The section titled "Non-GAAP Financial Information" below describes our usage of non-GAAP financial measures. Reconciliations between historical GAAP and non-GAAP information are contained at the end of this press release following the accompanying financial data.
Financial Outlook
For the third quarter of fiscal 2026, we expect:
Total revenue of $736.0 to $737.0 million Non-GAAP income from operations of $129.0 to $130.0 million Non-GAAP net income per share of $0.34, utilizing weighted average common shares outstanding of approximately 374 million For the full year fiscal 2026, we expect:
Total revenue of $2,864.0 to $2,870.0 million Non-GAAP income from operations of $443.0 to $445.0 million Non-GAAP net income per share of $1.25 to $1.26, utilizing weighted average common shares outstanding of approximately 374 million These statements are forward-looking and actual results may differ materially. Refer to the Forward-Looking Statements safe harbor below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.
Conference Call Information
Cloudflare will host an investor conference call to discuss its second quarter ended June 30, 2026 earnings results today at 2:00 p.m. Pacific time (5:00 p.m. Eastern time). Interested parties can access the call by dialing (646) 968-2727 or toll-free at (888) 596-4244 with conference ID 3723782. A live webcast of the conference call will be accessible from the investor relations website at https://cloudflare.NET. A replay will be available approximately two hours after the conclusion of the live event and will remain available for approximately one year.
Supplemental Financial and Other Information
Supplemental financial and other information can be accessed through the Company’s investor relations website at https://cloudflare.NET.
Non-GAAP Financial Information
Cloudflare believes that the presentation of non-GAAP financial information provides important supplemental information to management and investors regarding financial and business trends relating to the Company’s financial condition and results of operations. Reconciliations of non-GAAP financial measures to the most directly comparable financial results as determined in accordance with GAAP are included at the end of this press release following the accompanying financial data. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future. For further information regarding why Cloudflare believes that these non-GAAP measures provide useful information to investors, the specific manner in which management uses these measures, and some of the limitations associated with the use of these measures, please refer to the “Explanation of Non-GAAP Financial Measures” section at the end of this press release.
Available Information
Cloudflare intends to use its press releases, website, investor relations website, news site, blog, X account, Facebook account, and Instagram account, in addition to filings made with the Securities and Exchange Commission (SEC) and public conference calls, as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements involve substantial risks and uncertainties. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “should,” “expect,” “explore,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential,” or “continue,” or the negative of these words, or other similar terms or expressions that concern our expectations, strategy, plans, or intentions. However, not all forward-looking statements contain these identifying words. Forward-looking statements expressed or implied in this press release include, but are not limited to, statements regarding our future financial and operating performance, our reputation and performance in the market, general market trends, our estimated and projected revenue, non-GAAP income from operations and non-GAAP net income per share, shares outstanding, the benefits to customers from using our products, the expected functionality and performance of our products, the demand by customers for our products, our plans and objectives for future operations, growth, initiatives, or strategies, our market opportunity, the plan to further accelerate our evolution to an agentic AI-first operating model and the intent for the plan to align our organizational structure with this new operating model, the estimated reduction of our current workforce, the estimated charges in connection with this plan, including the primary components of such charges, the anticipated timing of the implementation of this plan and the timing of such charges, the expected benefits from this plan and related actions, and comments made by our CEO and others. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release, including: the impact of adverse macroeconomic conditions on our and our customers’, vendors’, and partners’ operations and future financial performance; the impact of conflicts and geopolitical tension around the world, particularly in Eastern Europe or the Middle East, or any worsening or expansion of those conflicts or tensions, as well as other geopolitical events such as elections and other governmental changes, threats of tariffs and other impediments to cross-border trade; our history of net losses; risks associated with managing our growth; our ability to attract and retain new customers (including new large customers); our ability to retain and upgrade paying customers and convert free customers to paying customers; our ability to expand the number of products we sell to paying customers; our ability to effectively increase sales to large customers; our ability to incorporate AI tools and automation to increase productivity and maintain operational efficiency; our ability to increase brand awareness; our ability to continue to innovate and develop new products and product features; our ability to generate demand for our products; our ability to effectively attract, train, and retain our sales force to be able to sell our existing and new products and product features; our sales team’s productivity; our ability to effectively attract, integrate and retain key personnel; problems with our internal systems, network, or data, including actual or perceived breaches or failures; rapidly evolving technological developments in the market, including advancements in AI; length of our sales cycles and the timing of payments by our customers; activities of our paying and free customers or the content of their websites and other Internet properties that use our network and products; foreign currency fluctuations; changes in the legal, tax, and regulatory environment applicable to our business; and other general market, political, economic, and business conditions. Our actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, risks detailed in our filings with the SEC, including our Quarterly Report on Form 10-Q filed on May 8, 2026, as well as other filings that we may make from time to time with the SEC.
The forward-looking statements made in this press release relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements.
About Cloudflare
Cloudflare, Inc. (NYSE: NET) is the leading connectivity cloud company on a mission to help build a better Internet. It empowers organizations to make their employees, applications and networks faster and more secure everywhere, while reducing complexity and cost. Cloudflare’s connectivity cloud delivers the most full-featured, unified platform of cloud-native products and developer tools, so any organization can gain the control they need to work, develop, and accelerate their business.
Powered by one of the world’s largest and most interconnected networks, Cloudflare blocks billions of threats online for its customers every day. It is trusted by millions of organizations – from the largest brands to entrepreneurs and small businesses to nonprofits, humanitarian groups, and governments across the globe.
Learn more about Cloudflare’s connectivity cloud at cloudflare.com/connectivity-cloud. Learn more about the latest Internet trends and insights at radar.cloudflare.com.
CLOUDFLARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Revenue
$
696,061
$
512,316
$
1,335,816
$
991,403
Cost of revenue(1)(2)
196,544
128,677
380,702
244,253
Gross profit
499,517
383,639
955,114
747,150
Operating expenses:
Sales and marketing(1)(2)(3)
276,122
219,359
547,722
433,370
Research and development(1)
159,486
134,557
310,458
249,646
General and administrative(1)(3)(5)(6)
118,912
96,987
213,931
184,645
Restructuring and other charges
150,693
—
150,693
—
Total operating expenses
705,213
450,903
1,222,804
867,661
Loss from operations
(205,696
)
(67,264
)
(267,690
)
(120,511
)
Non-operating income (expense):
Interest income
39,932
25,406
80,098
46,805
Interest expense(4)
(3,089
)
(1,524
)
(5,652
)
(2,967
)
Other income (expense), net
913
(3,907
)
3,903
(7,375
)
Total non-operating income, net
37,756
19,975
78,349
36,463
Loss before income taxes
(167,940
)
(47,289
)
(189,341
)
(84,048
)
Provision for income taxes
2,041
3,157
3,567
4,852
Net loss
$
(169,981
)
$
(50,446
)
$
(192,908
)
$
(88,900
)
Net loss per share attributable to common stockholders, basic and diluted
$
(0.48
)
$
(0.15
)
$
(0.55
)
$
(0.26
)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted
354,334
347,489
353,485
346,605
____________
(1) Includes stock-based compensation and related employer payroll taxes as follows:
Cost of revenue
$
4,311
$
3,693
$
8,455
$
6,599
Sales and marketing
41,246
36,818
84,070
67,023
Research and development
55,435
50,956
104,936
89,225
General and administrative
39,601
40,526
70,589
75,041
Total stock-based compensation and related employer payroll taxes
$
140,593
$
131,993
$
268,050
$
237,888
(2) Includes amortization of acquired intangible assets as follows:
Cost of revenue
$
5,050
$
3,329
$
11,011
$
6,182
Sales and marketing
2,391
417
3,641
805
Total amortization of acquired intangible assets
$
7,441
$
3,746
$
14,652
$
6,987
(3) Includes acquisition-related and other expenses as follows:
Sales and marketing
$
33
$
—
$
33
$
—
General and administrative
2,047
—
2,470
112
Total acquisition-related and other expenses
$
2,080
$
—
$
2,503
$
112
(4) Includes amortization of debt issuance costs as follows:
Interest expense
$
2,439
$
1,199
$
4,865
$
2,189
Total amortization of debt issuance costs
$
2,439
$
1,199
$
4,865
$
2,189
(5) Includes lease impairment charges as follows:
General and administrative
$
—
$
3,840
$
—
$
3,840
Total lease impairment charges
$
—
$
3,840
$
—
$
3,840
(6) Includes legal reserve and settlements as follows:
General and administrative
$
1,000
$
—
$
1,000
$
—
Total legal reserve and settlements
$
1,000
$
—
$
1,000
$
—
CLOUDFLARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except par value)
(unaudited)
June 30,
2026
December 31,
2025
Assets
Current assets:
Cash and cash equivalents
$
1,663,773
$
943,536
Available-for-sale securities
2,499,025
3,157,715
Accounts receivable, net
422,945
382,488
Contract assets
27,187
23,531
Restricted cash short-term
12,163
9,364
Prepaid expenses and other current assets
153,282
128,203
Total current assets
4,778,375
4,644,837
Property and equipment, net
703,209
618,691
Goodwill
376,204
226,563
Acquired intangible assets, net
57,369
41,799
Operating lease right-of-use assets
247,675
237,646
Deferred contract acquisition costs, noncurrent
240,523
219,499
Restricted cash
—
1,457
Other noncurrent assets
70,772
45,764
Total assets
$
6,474,127
$
6,036,256
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable
$
127,032
$
84,115
Accrued expenses and other current liabilities
165,788
109,054
Accrued compensation
151,528
111,005
Operating lease liabilities
78,239
70,901
Deferred revenue
812,187
684,207
Current portion of convertible senior notes, net
1,293,260
1,291,281
Total current liabilities
2,628,034
2,350,563
Convertible senior notes, net
1,977,006
1,974,120
Operating lease liabilities, noncurrent
180,845
182,025
Deferred revenue, noncurrent
40,252
41,088
Other noncurrent liabilities
27,970
29,337
Total liabilities
4,854,107
4,577,133
Stockholders’ Equity
Class A common stock; $0.001 par value; 2,250,000 shares authorized as of June 30, 2026 and December 31, 2025; 322,176 and 317,319 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively
322
317
Class B common stock; $0.001 par value; 315,000 shares authorized as of June 30, 2026 and December 31, 2025; 33,755 and 34,568 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively
33
34
Additional paid-in capital
3,027,713
2,651,420
Accumulated deficit
(1,397,815
)
(1,204,907
)
Accumulated other comprehensive income (loss)
(10,233
)
12,259
Total stockholders’ equity
1,620,020
1,459,123
Total liabilities and stockholders’ equity
$
6,474,127
$
6,036,256
CLOUDFLARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Six Months Ended June 30,
2026
2025
Cash Flows from Operating Activities
Net loss
$
(192,908
)
$
(88,900
)
Adjustments to reconcile net loss to cash provided by operating activities:
Depreciation and amortization expense
123,170
87,688
Non-cash operating lease costs
41,696
29,872
Amortization of deferred contract acquisition costs
63,486
47,296
Stock-based compensation expense
274,113
217,912
Amortization of debt issuance costs
4,865
2,189
Net accretion of discounts and amortization of premiums on available-for-sale securities
(13,233
)
(11,987
)
Deferred income taxes
(7,013
)
(480
)
Provision for bad debt
5,157
7,815
Other
(6,814
)
3,227
Changes in operating assets and liabilities, net of effect of asset acquisitions and business combinations:
Accounts receivable, net
(45,614
)
1,431
Contract assets
(3,656
)
(4,707
)
Deferred contract acquisition costs
(84,510
)
(58,998
)
Prepaid expenses and other current assets
(60,612
)
(46,339
)
Other noncurrent assets
7,142
4,312
Accounts payable
1,205
(247
)
Accrued expenses and other current liabilities
48,699
758
Accrued compensation
40,523
(2,914
)
Operating lease liabilities
(45,567
)
(24,973
)
Deferred revenue
127,144
82,643
Other noncurrent liabilities
(1,379
)
(18
)
Net cash provided by operating activities
275,894
245,580
Cash Flows from Investing Activities
Purchases of property and equipment
(115,192
)
(145,786
)
Capitalized internal-use software
(20,244
)
(13,647
)
Asset acquisitions and business combinations, net of cash acquired
(75,098
)
(6,462
)
Purchases of available-for-sale securities
(783,933
)
(1,530,775
)
Maturities of available-for-sale securities
1,442,199
810,825
Other investing activities
1,636
382
Net cash provided by (used in) investing activities
449,368
(885,463
)
Cash Flows from Financing Activities
Proceeds from settlement of the 2025 capped calls
—
309,616
Gross proceeds from issuance of 2030 convertible senior notes
—
2,000,000
Purchases of capped calls related to the 2030 convertible senior notes
—
(283,400
)
Cash paid for issuance costs on 2030 convertible senior notes
—
(27,873
)
Proceeds from the exercise of stock options
9,815
17,942
Proceeds from the issuance of common stock for employee stock purchase plan
16,075
13,057
Payment of tax withholding obligation on RSU and PSU settlement
(29,473
)
(18,217
)
Payment of indemnity holdback
(100
)
—
Net cash provided by (used in) financing activities
(3,683
)
2,011,125
Net increase in cash, cash equivalents, and restricted cash
721,579
1,371,242
Cash, cash equivalents, and restricted cash, beginning of period
954,357
154,214
Cash, cash equivalents, and restricted cash, end of period
$
1,675,936
$
1,525,456
CLOUDFLARE, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(in thousands, except per share amounts)
(unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Reconciliation of cost of revenue:
GAAP cost of revenue
$
196,544
$
128,677
$
380,702
$
244,253
Less: Stock-based compensation and related employer payroll taxes
(4,311
)
(3,693
)
(8,455
)
(6,599
)
Less: Amortization of acquired intangible assets
(5,050
)
(3,329
)
(11,011
)
(6,182
)
Non-GAAP cost of revenue
$
187,183
$
121,655
$
361,236
$
231,472
Reconciliation of gross profit:
GAAP gross profit
$
499,517
$
383,639
$
955,114
$
747,150
Add: Stock-based compensation and related employer payroll taxes
4,311
3,693
8,455
6,599
Add: Amortization of acquired intangible assets
5,050
3,329
11,011
6,182
Non-GAAP gross profit
$
508,878
$
390,661
$
974,580
$
759,931
GAAP gross margin
71.8
%
74.9
%
71.5
%
75.4
%
Non-GAAP gross margin
73.1
%
76.3
%
73.0
%
76.7
%
Reconciliation of operating expenses:
GAAP sales and marketing
$
276,122
$
219,359
$
547,722
$
433,370
Less: Stock-based compensation and related employer payroll taxes
(41,246
)
(36,818
)
(84,070
)
(67,023
)
Less: Amortization of acquired intangible assets
(2,391
)
(417
)
(3,641
)
(805
)
Less: Acquisition-related and other expenses
(33
)
—
(33
)
—
Non-GAAP sales and marketing
$
232,452
$
182,124
$
459,978
$
365,542
GAAP research and development
$
159,486
$
134,557
$
310,458
$
249,646
Less: Stock-based compensation and related employer payroll taxes
(55,435
)
(50,956
)
(104,936
)
(89,225
)
Non-GAAP research and development
$
104,051
$
83,601
$
205,522
$
160,421
GAAP general and administrative
$
118,912
$
96,987
$
213,931
$
184,645
Less: Stock-based compensation and related employer payroll taxes
(39,601
)
(40,526
)
(70,589
)
(75,041
)
Less: Acquisition-related and other expenses
(2,047
)
—
(2,470
)
(112
)
Less: Lease impairment charges
—
(3,840
)
—
(3,840
)
Less: Legal reserve and settlements
(1,000
)
—
(1,000
)
—
Non-GAAP general and administrative
$
76,264
$
52,621
$
139,872
$
105,652
GAAP restructuring and other charges
$
150,693
$
—
$
150,693
$
—
Less: Restructuring and other charges
(150,693
)
—
(150,693
)
—
Non-GAAP restructuring and other charges
$
—
$
—
$
—
$
—
Reconciliation of income (loss) from operations:
GAAP loss from operations
$
(205,696
)
$
(67,264
)
$
(267,690
)
$
(120,511
)
Add: Stock-based compensation and related employer payroll taxes
140,593
131,993
268,050
237,888
Add: Amortization of acquired intangible assets
7,441
3,746
14,652
6,987
Add: Acquisition-related and other expenses
2,080
—
2,503
112
Add: Lease impairment charges
—
3,840
—
3,840
Add: Legal reserve and settlements
1,000
—
1,000
—
Add: Restructuring and other charges
150,693
—
150,693
—
Non-GAAP income from operations
$
96,111
$
72,315
$
169,208
$
128,316
GAAP operating margin
(29.6
)%
(13.1
)%
(20.0
)%
(12.2
)%
Non-GAAP operating margin
13.8
%
14.1
%
12.7
%
12.9
%
CLOUDFLARE, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(in thousands, except per share amounts)
(unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Reconciliation of interest expense:
GAAP interest expense
$
(3,089
)
$
(1,524
)
$
(5,652
)
$
(2,967
)
Add: Amortization of debt issuance costs
2,439
1,199
4,865
2,189
Non-GAAP interest expense
$
(650
)
$
(325
)
$
(787
)
$
(778
)
Reconciliation of provision for income taxes:
GAAP provision for income taxes
$
2,041
$
3,157
$
3,567
$
4,852
Income tax effect of non-GAAP adjustments
26,485
15,275
47,059
28,644
Non-GAAP provision for income taxes
$
28,526
$
18,432
$
50,626
$
33,496
Reconciliation of net income (loss) and net income (loss) per share:
GAAP net loss attributable to common stockholders
$
(169,981
)
$
(50,446
)
$
(192,908
)
$
(88,900
)
Add: Stock-based compensation and related employer payroll taxes
140,593
131,993
268,050
237,888
Add: Amortization of acquired intangible assets
7,441
3,746
14,652
6,987
Add: Acquisition-related and other expenses
2,080
—
2,503
112
Add: Amortization of debt issuance costs
2,439
1,199
4,865
2,189
Add: Lease impairment charges
—
3,840
—
3,840
Add: Legal reserve and settlements
1,000
—
1,000
—
Add: Restructuring and other charges
150,693
—
150,693
—
Income tax effect of non-GAAP adjustments
(26,485
)
(15,275
)
(47,059
)
(28,644
)
Non-GAAP net income
$
107,780
$
75,057
$
201,796
$
133,472
GAAP net loss per share, basic
$
(0.48
)
$
(0.15
)
$
(0.55
)
$
(0.26
)
GAAP net loss per share, diluted
$
(0.48
)
$
(0.15
)
$
(0.55
)
$
(0.26
)
Add: Stock-based compensation and related employer payroll taxes
0.40
0.38
0.76
0.69
Add: Amortization of acquired intangible assets
0.02
0.01
0.04
0.02
Add: Acquisition-related and other expenses
0.01
—
0.01
—
Add: Amortization of debt issuance costs
0.01
—
0.01
0.01
Add: Lease impairment charges
—
0.01
—
0.01
Add: Legal reserve and settlements
—
—
—
—
Add: Restructuring and other charges
0.43
—
0.43
—
Income tax effect of non-GAAP adjustments
(0.07
)
(0.04
)
(0.13
)
(0.08
)
Effect of dilutive shares
(0.03
)
—
(0.03
)
(0.02
)
Non-GAAP net income per share, diluted(1)
$
0.29
$
0.21
$
0.54
$
0.37
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic
354,334
347,489
353,485
346,605
Weighted-average shares used in computing non-GAAP net income per share attributable to common stockholders, diluted
373,683
365,264
374,672
363,962
____________
(1) Totals may not sum due to rounding. Figures are calculated based upon the respective underlying non-rounded data.
CLOUDFLARE, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(in thousands, except per share amounts)
(unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Free cash flow
Net cash provided by operating activities
$
117,564
$
99,796
$
275,894
$
245,580
Less: Purchases of property and equipment
(49,961
)
(59,897
)
(115,192
)
(145,786
)
Less: Capitalized internal-use software
(11,219
)
(6,619
)
(20,244
)
(13,647
)
Free cash flow
$
56,384
$
33,280
$
140,458
$
86,147
Net cash provided by (used in) investing activities
$
608,174
$
(793,025
)
$
449,368
$
(885,463
)
Net cash provided by (used in) financing activities
$
5,785
$
2,007,603
$
(3,683
)
$
2,011,125
Net cash provided by operating activities
(percentage of revenue)
17
%
19
%
21
%
25
%
Less: Purchases of property and equipment
(percentage of revenue)
(7
)%
(12
)%
(9
)%
(15
)%
Less: Capitalized internal-use software
(percentage of revenue)
(2
)%
(1
)%
(1
)%
(1
)%
Free cash flow margin(1)
8
%
6
%
11
%
9
%
____________
(1) Totals may not sum due to rounding. Figures are calculated based upon the respective underlying non-rounded data.
Explanation of Non-GAAP Financial Measures
In addition to our results determined in accordance with generally accepted accounting principles in the United States (U.S. GAAP), we believe the following non-GAAP measures are useful in evaluating our operating performance. We use the following non-GAAP financial information to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that non-GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with U.S. GAAP. In particular, free cash flow is not a substitute for cash provided by operating activities. Additionally, the utility of free cash flow as a measure of our liquidity is further limited as it does not represent the total increase or decrease in our cash balance for a given period. In addition, other companies, including companies in our industry, may calculate similarly-titled non-GAAP measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. A reconciliation is provided above for each non-GAAP financial measure to the most directly comparable financial measure stated in accordance with U.S. GAAP. Investors are encouraged to review the related U.S. GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable U.S. GAAP financial measures, and not to rely on any single financial measure to evaluate our business.
Items Excluded from Non-GAAP Measures. We exclude stock-based compensation expense, which is a non-cash expense, from certain of our non-GAAP financial measures because we believe that excluding this item provides meaningful supplemental information regarding operational performance. We exclude employer payroll tax expenses related to stock-based compensation, which is a cash expense, from certain of our non-GAAP financial measures because such expenses are dependent upon the price of our Class A common stock and other factors that are beyond our control and do not correlate to the operation of our business. We exclude amortization of acquired intangible assets, which is a non-cash expense, related to business combinations from certain of our non-GAAP financial measures because such expenses are related to business combinations and have no direct correlation to the operation of our business. We exclude acquisition-related and other expenses from certain of our non-GAAP financial measures because such expenses are related to business combinations and have no direct correlation to the operation of our business. Acquisition-related and other expenses can be cash or non-cash expenses and include third-party transaction costs and compensation expense for key acquired personnel. We exclude lease impairment charges related to real estate leases, which is a non-cash expense, from certain of our non-GAAP financial measures because they are not indicative of our ongoing cost structure and core business performance. We exclude amortization of debt issuance costs, which is a non-cash expense, from certain of our non-GAAP financial measures because such expenses have no direct correlation to the operation of our business. We exclude legal reserve and settlements, which can be cash or non-cash expenses, from certain of our non-GAAP financial measures because they are not indicative of our ongoing cost structure and core business performance. We exclude restructuring and other charges, which can be cash or non-cash expenses, from certain of our non-GAAP financial measures because they are not indicative of our ongoing cost structure and core business performance.
Non-GAAP Gross Profit and Non-GAAP Gross Margin. We define non-GAAP gross profit and non-GAAP gross margin as U.S. GAAP gross profit and U.S. GAAP gross margin, respectively, excluding stock-based compensation and related employer payroll taxes and amortization of acquired intangible assets.
Non-GAAP Income from Operations and Non-GAAP Operating Margin. We define non-GAAP income from operations and non-GAAP operating margin as U.S. GAAP loss from operations and U.S. GAAP operating margin, respectively, excluding stock-based compensation expense and its related employer payroll taxes, amortization of acquired intangible assets, acquisition-related and other expenses, lease impairment charges, legal reserve and settlements, and restructuring and other charges.
Non-GAAP Net Income and Non-GAAP Net Income per Share, Diluted. We define non-GAAP net income as GAAP net loss adjusted for stock-based compensation expense and its related employer payroll taxes, amortization of acquired intangible assets, acquisition-related and other expenses, amortization of issuance costs, lease impairment charges, legal reserve and settlements, restructuring and other charges, and a non-GAAP provision for (benefit from) income taxes. Generally, the difference between our GAAP and non-GAAP income tax expense (benefit) is primarily due to adjustments in stock-based compensation and related employer payroll taxes, amortization of acquired intangibles associated with business combinations, acquisition-related and other expenses, amortization of issuance costs, lease impairment charges, legal reserve and settlements, and restructuring and other charges. We define non-GAAP net income per share, diluted, as non-GAAP net income divided by the weighted-average common shares outstanding, adjusted for dilutive potential shares that were assumed outstanding during period. Currently, potential dilutive effect mainly consists of employee equity incentive plans and convertible senior notes. We believe that excluding these items from non-GAAP net income per share, diluted, provides management and investors with greater visibility into the underlying performance of our core business operating results.
Free Cash Flow and Free Cash Flow Margin. Free cash flow is a non-GAAP financial measure that we calculate as net cash provided by operating activities less cash used for purchases of property and equipment and capitalized internal-use software. Free cash flow margin is calculated as free cash flow divided by revenue. We believe that free cash flow and free cash flow margin are useful indicators of liquidity that provide information to management and investors about the amount of cash generated from our operations that, after the investments in property and equipment and capitalized internal-use software, can be used for strategic initiatives, including investing in our business, and strengthening our financial position. We believe that historical and future trends in free cash flow and free cash flow margin, even if negative, provide useful information about the amount of cash generated by our operating activities that is available (or not available) to be used for strategic initiatives. For example, if free cash flow is negative, we may need to access cash reserves or other sources of capital to invest in strategic initiatives. One limitation of free cash flow and free cash flow margin is that they do not reflect our future contractual commitments. Additionally, free cash flow does not represent the total increase or decrease in our cash balance for a given period.
Cloudflare (NYSE:NET) is expected to accelerate revenue growth in the second quarter and raise its full-year outlook, according to Jefferies, with investors likely looking for a path toward a mid-30% growth rate by the end of 2026 when the company reports results on August 6.
The company's Q2 revenue guide of $664.5 million at the midpoint implies year-over-year growth of about 30%, a four-percentage-point sequential deceleration despite a one-percentage-point tougher comparison.
Jefferies wrote that the target appears achievable, but investors are likely looking for growth of at least 34% and guidance that supports confidence in a mid-30% growth exit rate.
The firm expects Cloudflare to beat its second-quarter revenue guidance, based on the company’s recent performance, which would bring growth to about 33.6% year over year. Jefferies also expects Cloudflare to raise its full-year revenue guidance by more than the amount of any second-quarter beat.
Jefferies’ proprietary survey produced mixed results ahead of the report, with performance to plan declining to 0.6% in the second quarter from 2.1% in the first. On a seasonally adjusted basis, however, performance was solid at 0.8%, compared with the second quarter of 2025. The survey also indicated continued momentum in SASE, while 65% of respondents expected Cloudflare spending to accelerate in the second half compared with the first half.
Investors are also likely to focus on the impact of Cloudflare’s previously announced 20% workforce reduction and any updates on the search for a chief revenue officer. Jefferies wrote that management appears confident the workforce reduction will not disrupt operations, particularly given its limited expected impact on quota-carrying sales representatives, although the firm continues to see some near-term risk that could constrain growth acceleration.
Cloudflare’s full-year revenue guidance currently calls for 30% year-over-year growth. Jefferies expects the company to raise its outlook and wrote that investors will likely seek commentary supporting a path toward a mid-30% growth exit rate, while noting tougher second-half comparisons and the workforce reduction as potential constraints.
On profitability, Cloudflare’s Q2 guidance calls for a non-GAAP operating margin of 13.6% to 13.7%, representing about 220 basis points of sequential expansion and roughly 50 basis points of year-over-year contraction. Jefferies expects some operating margin upside, partly reflecting benefits from the workforce reduction, while continuing to expect pressure on gross margins.
Cloudflare’s full-year guidance calls for a non-GAAP operating margin of 14.9% to 15%. At its investor day, the company also raised its long-term operating margin target to more than 30%, citing AI-driven productivity gains and lower headcount as key drivers.
Jefferies wrote that Cloudflare remains well positioned to benefit from AI-related demand and cybersecurity vendor consolidation, but noted that the stock’s valuation, at about 29 times estimated 2027 enterprise value to revenue, remains elevated.
Shares of Cloudflare traded up 7% at $303 on Tuesday afternoon, having surged almost 54% so far this year.
Cloudflare představila Wallets a cloudflare.pay, které dají AI agentům stabilní identitu a možnost bezpečně nakupovat v online limitech nastavených lidmi. Firmy tak uvidí, kdo agenta autorizoval.
New tools mean businesses will be able to see who's behind an AI agent, and those agents will be able to pay for things safely on their owner's behalf
SAN FRANCISCO--(BUSINESS WIRE)--Cloudflare, Inc. (NYSE: NET), the leading connectivity cloud company, today announced Cloudflare Wallets and cloudflare.pay to give AI agents deployed on Cloudflare a stable identity and the ability to make purchases online safely within limits set by their human creators. Now, for the first time, buyers and sellers will have the foundational building blocks they need to participate in agentic commerce with confidence—knowing who they're dealing with and transacting with, securely at every step.
AI agents—software programs that browse websites, query APIs, and make purchases autonomously—are becoming a normal part of doing business online. But the Internet was built for humans, not agents. When an agent visits a site to buy something or sign up for a free trial, the business on the other end has no reliable way to tell whether it's a real customer's assistant or a bad actor gaming the system. Older tools for detecting bots were built for search crawlers, not agents that transact on behalf of real people and companies. As a result, businesses are stuck choosing between locking everything down or taking their chances. Neither works at scale.
“The Internet is shifting from human-driven browsing to agent-driven commerce, and the infrastructure needs to keep up," said Matthew Prince, co-founder and CEO of Cloudflare. “When an agent shows up at your door, you need to know who sent it. Cloudflare can give agents a face—a link to the human or organization that owns them—so that trust, accountability, and real commerce can follow. It's the identity and payment infrastructure the agentic web needs to function.”
Cloudflare Wallets and cloudflare.pay will address the identity and payment problem together. First, Cloudflare accounts will get a unique web address that works as a stable ID. Users will be able to extend identity to specific agents, so any business receiving a request can see exactly who authorized it. Second, a Cloudflare “Account Wallet” will work like a central balance. It will be able to receive, hold, and manage stablecoins. From there, users will be able to assign “Virtual Wallets” to individual agents that the agents can spend on online resources. These Virtual Wallets will have guardrails built in from the start: Users will be free to define a spending cap, an approved merchant list, and even a maximum transaction size the agent cannot exceed on its own. Paired with the Monetization Gateway, Cloudflare Wallets and IDs will complete the two-sided agentic payment market.
Cloudflare Wallet handle reservation opens today. Full wallet access, including onramping and offramping funds and the ability to issue Virtual Wallets, will be available in the coming months. To claim a handle and be notified when access opens, visit cloudflare.pay and learn more on the Cloudflare blog below:
Blog: Announcing Cloudflare Wallets: The programmable wallet for the agentic Internet About Cloudflare
Cloudflare, Inc. (NYSE: NET) is the leading connectivity cloud company. It empowers organizations to make their employees, applications and networks faster and more secure everywhere, while reducing complexity and cost. Cloudflare’s connectivity cloud delivers the most full-featured, unified platform of cloud-native products and developer tools, so any organization can gain the control they need to work, develop, and accelerate their business.
Powered by one of the world’s largest and most interconnected networks, Cloudflare blocks billions of threats online for its customers every day. It is trusted by millions of organizations – from the largest brands to entrepreneurs and small businesses to nonprofits, humanitarian groups, and governments across the globe.
Learn more about Cloudflare’s connectivity cloud at cloudflare.com/connectivity-cloud. Learn more about the latest Internet trends and insights at radar.cloudflare.com.
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Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements involve substantial risks and uncertainties. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “should,” “expect,” “explore,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential,” or “continue,” or the negative of these words, or other similar terms or expressions that concern Cloudflare’s expectations, strategy, plans, or intentions. However, not all forward-looking statements contain these identifying words. Forward-looking statements expressed or implied in this press release include, but are not limited to, statements regarding the capabilities and effectiveness of Agent Cloud and Cloudflare’s other products and technology, the benefits to Cloudflare’s customers from using Agent Cloud and Cloudflare’s other products and technology, the timing of when Agent Cloud or any of its related features will be generally available to all current and potential Cloudflare customers, the timing of when Agent Cloud or any of its related features will be developed and available in beta form, or generally available, to all current and potential Cloudflare customers, Cloudflare’s technological development, future operations, growth, initiatives, or strategies, and comments made by Cloudflare’s CEO and others. Actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, risks detailed in Cloudflare’s filings with the Securities and Exchange Commission (SEC), including Cloudflare’s Quarterly Report on Form 10-Q filed on May 8, 2026, as well as other filings that Cloudflare may make from time to time with the SEC.
The forward-looking statements made in this press release relate only to events as of the date on which the statements are made. Cloudflare undertakes no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law. Cloudflare may not actually achieve the plans, intentions, or expectations disclosed in Cloudflare’s forward-looking statements, and you should not place undue reliance on Cloudflare’s forward-looking statements.
Cloudflare má 6. srpna oznámit výsledky za 2. čtvrtletí 2026 s výnosy kolem 664–665 mil. USD a ziskem 27 centů na akcii. Firma těží z adopce AI a Zero Trust, ale marže tlačí vyšší náklady na infrastrukturu.
Key Takeaways Cloudflare reports Q2 2026 results on Aug. 6, with revenues expected around $664-$665 million.NET is expected to benefit from AI adoption, Workers growth and Zero Trust demand.Cloudflare faces margin pressure from higher AI infrastructure costs and network utilization. Cloudflare (NET - Free Report) is scheduled to report second-quarter 2026 results on Aug. 6, 2026. NET anticipates revenues between $664 million and $665 million for second-quarter 2026. The Zacks Consensus Estimate for NET’s second-quarter revenues is pegged at $665.4 million, indicating year-over-year growth of 30%.
For the second quarter, the company expects non-GAAP earnings of 27 cents per share. The Zacks Consensus Estimate for NET’s second-quarter earnings is pegged at 27 cents per share, suggesting growth of 28.6% from the same quarter last year. The consensus mark for earnings has remained unchanged over the past 30 days.
Cloudflare’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 11.62%.
Factors Likely to Influence Cloudflare’s Q2 ResultsCloudflare’s second-quarter results are likely to benefit from the rapid adoption of artificial intelligence and the emergence of the agentic Internet. As enterprises increasingly deploy AI agents and autonomous workflows, demand for Cloudflare’s global network, application services and security offerings is expected to have remained strong in the to-be-reported quarter. Management continues to view AI-driven traffic as a structural growth opportunity for its platform.
Growing adoption of Cloudflare’s Workers developer platform is expected to have been another key growth driver in the to-be-reported quarter. Enterprises are increasingly building and deploying AI-native applications closer to end users, while developers continue to embrace AI-assisted coding and inference workloads. Rising demand for AI Gateway, Agent Cloud, AI Crawl Control and related offerings is likely to have supported Cloudflare’s top-line performance in the second quarter.
The ongoing shift toward Zero Trust cybersecurity architectures is also expected to have benefited Cloudflare’s second-quarter performance. Enterprises continue to consolidate networking and security vendors in favor of unified platforms that simplify operations while enhancing security. Strong adoption of Cloudflare One, SASE, Browser Isolation, Gateway and Access solutions is likely to have remained a tailwind in the to-be-reported quarter.
Cloudflare is also benefiting from enterprises moving away from traditional hyperscaler-centric architectures toward more flexible, developer-friendly and cost-efficient networking platforms. Its unified platform approach, combined with usage-based services and global edge infrastructure, is expected to have attracted customers looking to modernize applications and AI workloads during the second quarter.
However, higher network utilization and the growing mix of developer-focused products are likely to have continued pressuring gross margins in the second quarter. Increasing infrastructure costs associated with rising AI and application traffic, along with continued investment in platform expansion, are anticipated to have weighed on profitability in the to-be-reported quarter. Additionally, persistent macroeconomic and geopolitical uncertainty is expected to have continued affecting enterprise spending decisions.
Earnings Whispers for CloudflareOur proven model does not conclusively predict an earnings beat for Cloudflare this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Though Cloudflare carries a Zacks Rank #2, it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Stocks to ConsiderHere are a few companies worth considering in the broader Zacks Computer and Technology sector, as our model indicates that these possess the right combination of factors to exceed earnings expectations in their upcoming releases:
SanDisk Corporation (SNDK - Free Report) is scheduled to report fourth-quarter fiscal 2026 results on Aug. 5. Currently, it has an Earnings ESP of +4.13% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for SanDisk’s fourth-quarter earnings is pegged at $34.24 per share, indicating a year-over-year surge of 11,707%. Earnings estimates for the quarter have been revised upward by 5.7% over the past 60 days. Shares of SanDisk have soared 457.3% year to date (YTD).
Western Digital Corporation (WDC - Free Report) is scheduled to report fourth-quarter fiscal 2026 results on Aug. 5. Currently, it has an Earnings ESP of +3.22% and flaunts a Zacks Rank #1.
The Zacks Consensus Estimate for Western Digital’s fourth-quarter earnings is pegged at $3.35 per share, calling for a year-over-year increase of 101.8%. Earnings estimates for the quarter have been revised upward by 3 cents in the past 30 days. Shares of Western Digital have surged 217.5% YTD.
MKS Inc. (MKSI - Free Report) is scheduled to report second-quarter 2026 results on Aug. 5. Currently, it has an Earnings ESP of +2.64% and carries a Zacks Rank #2.
The Zacks Consensus Estimate for MKS’ second-quarter earnings is pegged at $2.93 per share, calling for a year-over-year jump of 65.5%. Earnings estimates for the quarter have been revised northward by a penny in the past 30 days. Shares of MKS have rallied 83.5% YTD.
Cloudflare v poslední seanci vzrostla o 1,32 % na 265,61 USD a před zveřejněním výsledků hospodaření, které mají být zveřejněny 6. srpna 2026, analytici očekávají EPS 0,27 USD a tržby 665,42 mil. USD.
In the latest close session, Cloudflare (NET - Free Report) was up +1.32% at $265.61. This move outpaced the S&P 500's daily gain of 0.02%. At the same time, the Dow added 0.51%, and the tech-heavy Nasdaq lost 0.18%.
Prior to today's trading, shares of the web security and content delivery company had gained 10.5% outpaced the Computer and Technology sector's loss of 4.21% and the S&P 500's gain of 0.77%.
Investors will be eagerly watching for the performance of Cloudflare in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on August 6, 2026. The company's earnings per share (EPS) are projected to be $0.27, reflecting a 28.57% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $665.42 million, up 29.88% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.21 per share and revenue of $2.82 billion. These totals would mark changes of +30.11% and +29.96%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Cloudflare. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 32% higher. As of now, Cloudflare holds a Zacks Rank of #2 (Buy).
Digging into valuation, Cloudflare currently has a Forward P/E ratio of 217.07. Its industry sports an average Forward P/E of 18.86, so one might conclude that Cloudflare is trading at a premium comparatively.
Investors should also note that NET has a PEG ratio of 5.03 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NET's industry had an average PEG ratio of 1.07 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 150, positioning it in the bottom 40% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Andra AP fond ve 1. čtvrtletí snížil podíl v Cloudflare o 30,2 % a po prodeji držel 33 456 akcií v hodnotě 6,903 milionu USD. Cloudflare zároveň za čtvrtletí oznámila tržby 639,75 milionu USD a EPS 0,25, nad odhady.
Andra AP fonden lessened its holdings in shares of Cloudflare, Inc. (NYSE:NET – Free Report) by 30.2% in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 33,456 shares of the company’s stock after selling 14,475 shares during the period. Andra AP fonden’s holdings in Cloudflare were worth $6,903,000 at the end of the most recent reporting period.
A number of other hedge funds also recently bought and sold shares of NET. Cassaday & Co Wealth Management LLC acquired a new stake in Cloudflare in the 1st quarter valued at about $53,000. Florida Financial Advisors LLC boosted its holdings in shares of Cloudflare by 22.4% during the 1st quarter. Florida Financial Advisors LLC now owns 5,611 shares of the company’s stock worth $1,158,000 after purchasing an additional 1,025 shares during the last quarter. Earned Wealth Advisors LLC grew its position in shares of Cloudflare by 2.9% in the first quarter. Earned Wealth Advisors LLC now owns 2,119 shares of the company’s stock valued at $437,000 after purchasing an additional 60 shares in the last quarter. Hollencrest Capital Management grew its position in shares of Cloudflare by 153.9% in the first quarter. Hollencrest Capital Management now owns 358 shares of the company’s stock valued at $74,000 after purchasing an additional 217 shares in the last quarter. Finally, Meeder Advisory Services Inc. grew its position in shares of Cloudflare by 14.9% in the first quarter. Meeder Advisory Services Inc. now owns 8,155 shares of the company’s stock valued at $1,683,000 after purchasing an additional 1,058 shares in the last quarter. Institutional investors and hedge funds own 82.68% of the company’s stock.
Cloudflare Trading Down 1.3% Shares of Cloudflare stock opened at $268.86 on Thursday. The stock has a 50 day moving average of $241.16 and a 200 day moving average of $211.56. The company has a debt-to-equity ratio of 1.29, a quick ratio of 1.96 and a current ratio of 1.96. The firm has a market capitalization of $95.04 billion, a price-to-earnings ratio of -1,075.46, a PEG ratio of 277.55 and a beta of 1.67. Cloudflare, Inc. has a fifty-two week low of $158.83 and a fifty-two week high of $291.00.
Cloudflare (NYSE:NET – Get Free Report) last posted its earnings results on Thursday, May 7th. The company reported $0.25 EPS for the quarter, beating analysts’ consensus estimates of $0.23 by $0.02. Cloudflare had a negative return on equity of 5.65% and a negative net margin of 3.72%.The company had revenue of $639.75 million for the quarter, compared to the consensus estimate of $620.83 million. During the same quarter in the previous year, the business earned $0.16 earnings per share. The company’s revenue for the quarter was up 33.5% on a year-over-year basis. 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, research analysts predict that Cloudflare, Inc. will post 0.02 earnings per share for the current year.
Wall Street Analysts Forecast Growth A number of brokerages recently commented on NET. Sanford C. Bernstein reiterated a “market perform” rating and set a $136.00 price objective on shares of Cloudflare in a research report on Wednesday, June 10th. Wells Fargo & Company upped their target price on Cloudflare from $270.00 to $300.00 and gave the company an “overweight” rating in a report on Monday. Benchmark downgraded Cloudflare to an “underperform” rating in a research note on Tuesday, July 7th. Barclays lifted their price target on Cloudflare from $250.00 to $300.00 and gave the stock an “overweight” rating in a report on Monday, July 13th. Finally, Mizuho boosted their price target on shares of Cloudflare from $260.00 to $310.00 and gave the company an “outperform” rating in a research report on Wednesday, July 15th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating, six have given a Hold rating and four have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $258.59.
Get Our Latest Stock Analysis on Cloudflare
Insider Transactions at Cloudflare In related news, Director Mark J. Hawkins sold 133 shares of the stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $249.00, for a total transaction of $33,117.00. Following the transaction, the director owned 10,765 shares of the company’s stock, valued at approximately $2,680,485. This represents a 1.22% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Matthew Prince sold 52,383 shares of the firm’s stock in a transaction dated Monday, July 6th. The shares were sold at an average price of $247.28, for a total value of $12,953,268.24. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 564,903 shares of company stock worth $127,356,194. 10.66% of the stock is owned by corporate insiders.
About Cloudflare (Free Report)
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.
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Cloudflare zpřístupnila Precursor, nástroj pro průběžné behaviorální ověřování proti botům v reálném čase bez zásahů do běžných uživatelů. Funguje jedním kliknutím a sleduje celou relaci v prohlížeči.
Built on one of the world’s largest networks, Precursor is the only defense of its kind to replace disruptive checkpoints to stop evasive bots without slowing down users
SAN FRANCISCO--(BUSINESS WIRE)--Cloudflare, Inc. (NYSE: NET), the leading connectivity cloud company, today announced the general availability of Precursor, a next-generation, continuous behavioral validation engine for bot management. Built directly on Cloudflare’s edge, Precursor runs seamlessly inside web browsers to monitor entire user sessions in order to detect bot automation. Unlike traditional, static CAPTCHAs, it analyzes ongoing interactions in real time to catch advanced bots, improving detection precision without interrupting legitimate users.
For the first time, automated bot traffic has eclipsed human activity on the Internet, now generating roughly 57% of all web requests. This milestone emphasizes a seismic evolution from an Internet built for human clicks to a digital landscape now dominated by AI agents. For organizations and everyday consumers, this means that legacy defenses are blind to a new breed of automated threats that drive up infrastructure costs, manipulate inventory, and compromise data. While a modern bot can easily fake a single action to pass a one-time security check, replicating an entire human journey remains a massive engineering hurdle. To protect the integrity of the global Internet, organizations must move away from static, point-in-time defenses and embrace continuous behavioral validation—analyzing telemetry across an entire session to unmask automated imposters trying to blend into the crowd.
"Traditional security checks look at a single moment in time, but modern bots have gotten smart enough to fake their way through the front door," said Dane Knecht, CTO of Cloudflare. "Instead of just checking an ID at the gate, we are looking at behavior over the entire visit. This makes life seamless for real users, while making it incredibly difficult and expensive for bad actors to fake human behavior. Cloudflare already protects users billions of times a day at critical moments like login and checkout, but until now, the space between those moments was a black box. With Precursor, we’re now eliminating that blindspot."
Now generally available, Precursor provides a session-level view of site activity by continuously collecting robust browser signals to block unwanted automated traffic through:
Privacy-Led Defense: Built to protect end user confidentiality, Precursor logs aggregate behavioral patterns rather than recording specific user inputs. For example, keyboard activity is recorded exclusively as timing rhythm and cadence—never capturing actual keystrokes. Zero-Code, One-Click Setup: Precursor is enabled with one click, automatically allowing Cloudflare to inject a compact, dynamic script passing through the network, requiring no modifications to underlying code. The script evaluates interaction trail dimensions such as mouse movement, scrolling rhythm, typing cadence, clipboard activity, and page visibility duration. A Real-Time Analysis Engine: Cloudflare's servers instantly unpack the telemetry data sent from a user's browser and scan it for signs of faked or computer-generated activity. We then validate whether interaction streams map rationally to human behavior, such as cross-referencing that pointer activity aligns with page visibility or text fields are focused during typing events. Session-Long Security Measures: Unlike traditional defense challenges that reset per every request, Precursor continuously evaluates the visitor’s user journey across a web or single page application. Automated agents cannot reset their behavioral signatures by refreshing a page, allowing defensive algorithms to adjust a session's Bot Score with compounding context. To learn more, please check out the resources below:
Blog: Introducing Precursor: detecting agentic behavior with continuous client-side signals Cloudflare Precursor About Cloudflare
Cloudflare, Inc. (NYSE: NET) is the leading connectivity cloud company. It empowers organizations to make their employees, applications and networks faster and more secure everywhere, while reducing complexity and cost. Cloudflare’s connectivity cloud delivers the most full-featured, unified platform of cloud-native products and developer tools, so any organization can gain the control they need to work, develop, and accelerate their business.
Powered by one of the world’s largest and most interconnected networks, Cloudflare blocks billions of threats online for its customers every day. It is trusted by millions of organizations – from the largest brands to entrepreneurs and small businesses to nonprofits, humanitarian groups, and governments across the globe.
Learn more about Cloudflare’s connectivity cloud at cloudflare.com/connectivity-cloud. Learn more about the latest Internet trends and insights at radar.cloudflare.com.
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Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements involve substantial risks and uncertainties. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “should,” “expect,” “explores,” “plans,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” or “continue,” or the negative of these words, or other similar terms or expressions that concern Cloudflare’s expectations, strategy, plans, or intentions. However, not all forward-looking statements contain these identifying words. Forward-looking statements expressed or implied in this press release include, but are not limited to, statements regarding the capabilities and effectiveness of Cloudflare Precursor and Cloudflare’s other products and technology, the benefits to Cloudflare’s customers from using Cloudflare Precursor and Cloudflare’s other products and technology, the timing of when Cloudflare Precursor or any of its related features will be generally available to all current and potential Cloudflare customers, Cloudflare’s technological development, future operations, growth, initiatives, or strategies, and comments made by Cloudflare’s CTO. Actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, risks detailed in Cloudflare’s filings with the Securities and Exchange Commission (SEC), including Cloudflare’s Quarterly Report on Form 10-Q filed on May 8, 2026, as well as other filings that Cloudflare may make from time to time with the SEC.
The forward-looking statements made in this press release relate only to events as of the date on which the statements are made. Cloudflare undertakes no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law. Cloudflare may not actually achieve the plans, intentions, or expectations disclosed in Cloudflare’s forward-looking statements, and you should not place undue reliance on Cloudflare’s forward-looking statements.
Cloudflare vzrostl v úterý o 7 % poté, co Scotiabank zvýšila rating na Sector Outperform ze Sector Perform a cílovou cenu na 300 USD. Banka vidí rostoucí roli firmy v AI infrastruktuře.
Cloudflare Inc. NET shares climbed 7% on Tuesday after Scotiabank upgraded the cloud infrastructure and cybersecurity company, citing growing confidence in its long-term role in artificial intelligence infrastructure and raising its price target on the stock.
The brokerage upgraded Cloudflare to Sector Outperform from Sector Perform and increased its price target to $300 from $225, pointing to multiple catalysts that it believes could drive stronger revenue growth over the coming quarters.
Shares of Cloudflare rose after the analyst report, adding to investor optimism surrounding the company's expanding role in AI infrastructure and developer tools.
Scotiabank analyst Patrick Colville said Cloudflare's Workers platform is increasingly becoming a preferred infrastructure layer for AI-generated, or "vibe coded," applications, including OpenAI Codex Sites and Lovable.
"We upgrade our rating on the common shares of Cloudflare to Sector Outperform and lift our price target to $300," Colville said.
After spending the past 4+ weeks doing a deeper dive on Cloudflare's opportunity, we feel convinced that the time is now to own NET as: (1) Workers is becoming the default infrastructure for vibe coded applications – including OpenAI Codex Sites and Lovable, a dynamic we think is underappreciated by investors; (2) Traffic trends, which typically precede revenue by 3 quarters are inflecting due to agentic AI and will set Cloudflare up nicely to beat and raise Street numbers by ~5pp in 2H26, (3) Cloudflare is winning the best of the best AI-native customers, which validates their architecture and provides a long runway for growth.
According to Scotiabank, these developments are not yet fully reflected in investor expectations and could become an increasingly important driver of Cloudflare's future growth.
The brokerage also pointed to the company's ability to attract leading AI-native customers, saying this validates its technology platform and supports a longer runway for expansion.
Scotiabank said Cloudflare's traffic growth has historically preceded revenue growth by approximately three quarters and noted that those trends are now accelerating as demand for agentic AI applications increases.
The firm believes the improvement in traffic could allow Cloudflare to outperform Wall Street expectations by roughly five percentage points during the second half of 2026.
The report argues that stronger traffic trends, combined with growing adoption of AI-focused applications, position the company for improved financial performance over the coming quarters.
The analyst note follows Cloudflare's July 1 launch of Monetization Gateway, which expands its existing Pay Per Crawl service into Pay Per Use through the open x402 protocol.
The initiative is designed to allow website owners to charge AI agents for access on a per-use basis, supporting what the company describes as the emerging agentic web.
The feature remains in an early-access and waitlist phase.
While acknowledging that Cloudflare continues to trade at a premium valuation, Scotiabank said the company's long-term opportunity in AI infrastructure is becoming increasingly clear.
The brokerage argued that the combination of growing AI adoption, improving traffic trends and continued product development supports a more constructive outlook for the stock despite its elevated valuation.
Cloudflare trades at a forward P/E of 204.19, according to data from stockanalysis.
Cloudflare v 1. čtvrtletí zvýšila tržby o 33,54 % na 639,75 milionu USD a překonala odhady EPS. Zároveň oznámila, že zruší zhruba 1 100 pracovních míst, tedy asi 20 % stavu.
Cloudflare is making the boldest AI pivot of any Tier 1 internet infrastructure provider. On the Q1 2026 earnings call, CEO Matthew Prince told investors that "AI is driving a fundamental re-platforming of the Internet and a paradigm shift in how software is created and consumed; it's shaping up to be the biggest tailwind we've ever seen in Cloudflare's history."
The Numbers Behind the AI Thesis Cloudflare (NYSE:NET | NET Price Prediction) posted Q1 revenue of $639.75 million, up 33.54% year-over-year, with non-GAAP EPS of $0.25 exceeding estimates. Current RPO grew 34% year-over-year, and free cash flow reached $84.07 million, or 13% of revenue. Prince disclosed that $5M+ annual customer additions in Q1 matched the entire haul from all of 2025, and Cloudflare added 1 million new developers in Q1 alone, versus 1.5 million in all of 2025.
Reorganizing Around Agents Cloudflare announced a workforce reduction of approximately 1,100 employees, roughly 20% of headcount, with restructuring charges of $140 million to $150 million concentrated in Q2. Prince said: "This is not a cost-cutting exercise or an assessment of the individuals' performance. It is about defining how a world-class, high-growth company operates and creates value in the agentic AI era."
Internal proof points are striking. Prince noted Cloudflare's usage of AI has increased more than 600% in the last three months, 97% of engineering uses AI coding tools, and 100% of production code contributions are reviewed by autonomous AI agents. On Workers, one large AI studio went from zero Dynamic Workers to over 1 million running on the platform in 15 days.
Peer Contrast: Fastly and Akamai Fastly (NYSE:FSLY) is pursuing bot-management tools like Content Guard and the Fastly Agent Toolkit. The security segment grew 47% year-over-year to $38.8 million. Akamai (NASDAQ:AKAM) is chasing scale deals: CEO Tom Leighton highlighted a $1.8 billion, seven-year commitment from a leading frontier model provider for Cloud Infrastructure Services, which grew 40% year-over-year to $94.6 million, even as total company growth registered just 5.76%.
Valuation and Market Response Cloudflare shares trade at $242.41, up 22.96% year-to-date, against a forward P/E of 204 and price-to-sales of 37. The analyst consensus price target sits at $243.65, with 22 buy or strong-buy ratings against two sell ratings. Eric Bleeker holds Cloudflare as an active recommendation in The AI Investor Portfolio.
The bull case: if agents become the dominant internet users, Cloudflare’s Workers platform sits at the center of that traffic. The bear case is valuation and GAAP gross margin compression from 75.9% to 71.2%. Watch Q2 execution against $664-$665 million revenue guidance and restructuring rollout pace.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Cloudflare didn't make the cut. Grab the names FREE today.
Cloudflare začne od 15. září 2026 ve výchozím nastavení blokovat „mixed-use“ crawlery na webech s reklamou, pokud si majitelé webu nenastaví výjimku. Zároveň rozšiřuje model Pay Per Crawl na Pay Per Use, aby vydavatelé mohli účtovat AI firmám za využití obsahu.
Cloudflare has just issued the AI industry a new deadline to separate the web crawlers used for traditional search purposes, like Google Search, from those used for AI agents and training. Starting on September 15, 2026, Cloudflare’s default settings will block “mixed-use” crawlers from any pages that host ads, the company announced on Wednesday.
That means that the crawlers that blend search, agent use, and training will be blocked from crawling these sites by default, unless the site owner adjusts the settings otherwise. These changes to the defaults will apply to new Cloudflare customers, new sites set up by existing customers, and all existing free customers, the company says.
The move could impact how AI model providers are able to access web content for training purposes and to help power their agentic services.
Cloudflare points out that most website owners want their content to be discoverable via search and often through AI services as well, but they want protections against having their intellectual property given away for free.
Cloudflare specifically calls out the “world’s largest search engine” (clearly a Google reference!) as having access to about “2x more information” than other AI companies because the search giant makes it difficult for customers to remain discoverable without being used for AI.
Google has pushed back against this generalization in the past, noting that it provides a bot called Google Extended that lets site owners opt out of having their content used for training and AI products and services like Gemini Apps and Vertex API. Its use doesn’t impact a site’s inclusion in Google Search. However, the tech giant’s flagship Googlebot crawls for Search, including AI features like AI Overviews and AI Mode.
“Now that the majority of traffic on the Internet is non-human, we must go further and act faster so that a sustainable ecosystem can emerge,” said Cloudflare co-founder and CEO Matthew Prince in his announcement of the news, referring to the recent milestone where bots surpassed human traffic online for the first time. That shift was not expected to occur until next year.
“Cloudflare’s new tools and partnerships give website owners increased visibility and commercial opportunities and benefit AI companies that have bots with clear and transparent intent. We hope that our proposed default changes encourage mixed-use crawlers to separate out search from agent use and training,” Prince said.
While Cloudflare offers a number of products to help users launch their own AI systems, the company has also released a range of tools to give publishers more control over their content in the AI era. In recent years, Cloudflare launched tools to combat AI bots, including a marketplace that lets websites charge AI bots for scraping, dubbed Pay Per Crawl.
The latter is now also evolving into “Pay Per Use,” the company said, which will allow publishers to charge AI companies when their content creates value, not just when it’s fetched.
The change could also help conserve publishers’ bandwidth and compute resources for AI model providers, as Cloudflare’s data suggested that over 50% of crawl traffic from AI crawlers is spent re-fetching unchanged pages.
To put this into action, Cloudflare is initially working with two partners, Ceramic.ai and You.com. When a publisher opts in, they’re paid when their content appears in Ceramic’s AI search results or when You.com accesses a piece of their premium content.
Other AI companies can customize this model for how they work, Cloudflare says.
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Cloudflare (NET - Free Report) closed the most recent trading day at $226.65, moving +1.42% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.01%. At the same time, the Dow added 0.14%, and the tech-heavy Nasdaq lost 0.46%.
Prior to today's trading, shares of the web security and content delivery company had gained 6.82% outpaced the Computer and Technology sector's loss of 2.57% and the S&P 500's loss of 1.4%.
The investment community will be paying close attention to the earnings performance of Cloudflare in its upcoming release. The company's upcoming EPS is projected at $0.27, signifying a 28.57% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $665.42 million, showing a 29.88% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.2 per share and a revenue of $2.81 billion, signifying shifts of +29.03% and +29.72%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Cloudflare. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 400% rise in the Zacks Consensus EPS estimate. At present, Cloudflare boasts a Zacks Rank of #2 (Buy).
Investors should also note Cloudflare's current valuation metrics, including its Forward P/E ratio of 185.62. This signifies a premium in comparison to the average Forward P/E of 18.07 for its industry.
We can additionally observe that NET currently boasts a PEG ratio of 4.3. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.01.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 89, placing it within the top 37% of over 250 industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Cloudflare v 1. čtvrtletí vykázala provozní ztrátu 62 milionů USD a tržby vzrostly o 34 %, ale firma zůstává nerentabilní. Akcie se obchodují za více než 33násobek tržeb.
Cloudflare (NET +2.96%) hasn't fared as well as other cybersecurity stocks this year. It's only up 13.8% year to date, while competitors like CrowdStrike (CRWD +0.81%) and Fortinet (FTNT +1.85%) are up by 49% and 87% year to date, respectively. This gap may exist for a reason, and there is good cause to believe that Cloudflare is overvalued, even at current levels.
Image source: Getty Images.
Profitability remains an issue for Cloudflare Cloudflare's first-quarter results once again showed a net operating loss, which is one of the major headwinds holding the stock back from a higher valuation. Solid growth rates matter, but when a company has been around for more than 15 years, profitability matters a lot more.
The company produced a net operating loss of $62 million. That's a higher operating loss than last year, but it also represents 9.7% of revenue, while the Q1 2025 net operating loss represented 11.1% of revenue. CrowdStrike and Fortinet are both profitable, which partially explains why those stocks have enjoyed better rallies.
Revenue is still good for Cloudflare, with total sales up 34% year over year. Like many cybersecurity companies, Cloudflare enjoys an annual recurring revenue model, which makes it easier to project future results.
Cloudflare also anticipates $2.81 billion in full-year revenue at the midpoint, which represents a 29.6% year-over-year improvement. It's a step down from the 34% growth rate in Q1, but it's also normal for growth-oriented companies to beat and raise guidance. There was no guidance for GAAP (generally accepted accounting principles) net income, indicating that profitability may remain an issue.
Today's Change
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Cloudflare's valuation is already high The price-to-sales (P/S) ratio does not paint a pretty picture for Cloudflare. The stock trades at more than 33 times sales, which is similar to CrowdStrike's valuation and more than double Fortinet's valuation. Still, CrowdStrike delivers profits, while Cloudflare isn't at that level yet.
Cloudflare's P/S ratio doesn't leave much flexibility if revenue growth starts to decelerate in future quarters. Artificial intelligence can accelerate revenue growth rates across the cybersecurity industry, but Cloudflare's recent guidance does not suggest this scenario will play out for the company.
It would be easier to give the stock a chance if it had a lower P/S ratio. Some high-growth companies can get away with high valuations, but if they remain unprofitable for too long, more investors will start to notice and look for other investments.
Cloudflare does a good job of retaining customers and has more than 4,400 large customers, defined as any business that pays at least $100,000 per year for Cloudflare's cybersecurity solutions. Cloudflare also works with more than 40% of Fortune 500 companies.
The company has an excellent service that continues to attract leading businesses. That part is good. However, profitability concerns, guidance forecasting revenue deceleration, and a lofty P/S ratio suggest that investors can do better with other stocks.
