Companies /Technology

Cloudflare Inc - Class A

NYSE: NET Software - Infrastructure
$299.55
▼ $8.68 (−2.82%) today
Markets closed · 4:34pm ET

Q2 2026 Earnings

Reported Aug 6, 2026, 4:20pm ET · SEC source
$0.29
Beat +7.49%
EPS · est. $0.27 Adjusted

GAAP net loss includes $150.7 million in restructuring and other charges related to workforce reduction and agentic AI-first operating model realignment, $140.6 million in stock-based compensation and related employer payroll taxes, $7.4 million in amortization of acquired intangible assets, $2.1 million in acquisition-related and other expenses, $2.4 million in amortization of debt issuance costs, and $1.0 million in legal reserve and settlements.

$696.1M
Beat +4.46%
Revenue · est. $666.3M
5 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−10%−5%0Aug 6Aug 7report 4:20pm ETearnings+0.6%−7.6%
−10%−5%0Aug 6Aug 7earnings+0.6%−7.6%
NET −7.6%S&P 500 +0.6%
−10%−5%0Aug 6Aug 7report 4:20pm ETearnings+1.2%−7.6%
−10%−5%0Aug 6Aug 7earnings+1.2%−7.6%
NET −7.6%NASDAQ +1.2%
−15%−10%−5%0Aug 5Aug 14report 4:20pm ETearnings+1.0%−4.4%
−15%−10%−5%0Aug 5Aug 14earnings+1.0%−4.4%
NET −4.4%S&P 500 +1.0%
−12%−6%0Aug 5Aug 14report 4:20pm ETearnings+2.3%−4.4%
−12%−6%0Aug 5Aug 14earnings+2.3%−4.4%
NET −4.4%NASDAQ +2.3%
+5.57%
Day of report
+3.44%
Next session
+5.17%
One week

Did NET Beat Earnings? Q2 2026 Results

Cloudflare delivered a standout second quarter, beating consensus estimates on both the top and bottom lines as revenue surged 35.9% year-over-year to $696.06 million, well ahead of the $666.35 million analysts had expected. Non-GAAP EPS came in at $0.29, beating the $0.27 consensus by 7.49%, extending the company's streak to four consecutive quarters of beating EPS estimates. The headline numbers, however, were accompanied by a significant restructuring charge of $150.69 million tied to what CEO Matthew Prince called an "agentic AI-first operating model" realignment, widening the GAAP net loss to $169.98 million. On a non-GAAP basis, the operational picture was considerably healthier, with free cash flow climbing to $56.38 million at an 8% margin. Options traders had flagged the potential for an outsized stock move around the print, and the results gave them reason to pay attention. Looking ahead, Cloudflare raised its full-year 2026 revenue guidance to a range of $2.86 billion to $2.87 billion, with non-GAAP EPS of $1.25 to $1.26, while Q3 guidance calls for revenue of $736 million to $737 million.

Key Takeaways
  • 36% year-over-year revenue growth
  • 35% year-over-year Current RPO growth
  • Record growth in total paying customers, large customers, and developers on the platform
  • Free cash flow margin improved to 8% from 6% year-over-year

“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.”

Cloudflare CEO, on the earnings call

Forward Guidance & Outlook

For Q3 2026, Cloudflare expects total revenue of $736.0 to $737.0 million, non-GAAP operating income of $129.0 to $130.0 million, and non-GAAP net income per diluted share of $0.34 on approximately 374 million weighted average shares. For full year 2026, the company expects total revenue of $2,864.0 to $2,870.0 million, non-GAAP operating income of $443.0 to $445.0 million, and non-GAAP net income per diluted share of $1.25 to $1.26 on approximately 374 million weighted average shares.

NET YoY Financials

Q2 2026 vs Q2 2025 · SEC filings Q2 2025 Q2 2026
$0$200.0M$400.0M$600.0M$512.3M$696.1MRevenue$383.7M$499.5MGross Profit
$0$200.0M$400.0M$600.0MRevenueGross Profit

Figures from SEC filings and company reports. Not investment advice.