Q2 26 EPS Adjusted
$0.29
BEAT +7.49%
Est. $0.27
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.
Q2 26 Revenue
$696.1M
BEAT +4.46%
Est. $666.3M
Market Reaction
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 $… Read more 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
NET 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, source: SEC Filings
“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.”
— Matthew Prince, Q2 2026 Earnings Press Release
NET Earnings Trends
NET vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
NET EPS Trend
Earnings per share: estimate vs actual
NET Revenue Trend
Quarterly revenue: estimate vs actual
NET Quarterly Results
11 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q2 26 BEAT 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. | $0.27 | $0.29 | +7.49% | $696.1M | +4.46% |
| Q1 26 BEAT | $0.23 | $0.25 | +6.47% | $639.8M | +2.72% |
| Q4 25 BEAT FY | $0.27 | $0.28 | +3.21% | $614.5M | +3.91% |
| FY Full Year | $0.91 | $0.93 | +1.81% | $2.17B | +1.08% |
| Q3 25 BEAT | $0.23 | $0.27 | +15.34% | $562.0M | +3.13% |
| Q2 25 BEAT | $0.18 | $0.21 | +15.51% | $512.3M | +2.14% |
| Q1 25 MISS | $0.16 | $0.16 | -1.54% | $479.1M | +2.00% |
| Q4 24 BEAT FY | $0.18 | $0.19 | +4.97% | $459.9M | +1.73% |
| FY Full Year | $0.74 | $0.75 | +0.81% | $1.67B | +0.47% |
| Q3 24 BEAT | $0.18 | $0.20 | +11.11% | $430.1M | +1.41% |
| Q2 24 BEAT | $0.14 | $0.20 | +42.86% | $401.0M | +1.53% |
| Q1 24 BEAT | $0.13 | $0.16 | +23.08% | $378.6M | +1.48% |
| Q3 21 | $-0.04 | — | — | — | — |