Cloudflare (NET) Q2 2026 Earnings
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.
How Did NET Stock React to Q2 2026 Earnings?
S&P 500 over the same 30 days: −1.40%.
Did NET Beat Earnings? Q2 2026 Results
Yes. Cloudflare reported Q2 2026 earnings of $0.29 a share on Aug 6, 2026, beating the $0.27 consensus estimate by 7.5%. Revenue was $696.1M against a $666.3M estimate.
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.
- 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
What Is Cloudflare's 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
| Metric | Q2 2026 | Q2 2025 | Year over year |
|---|---|---|---|
| Revenue | $696.1M | $512.3M | +35.9% |
| Gross Profit | $499.5M | $383.7M | +30.2% |
When Does Cloudflare Report Next?
Figures from SEC filings and company reports. Not investment advice.