Cloudflare Inc - Class A
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −3.31%.
Did NET Beat Earnings? Q4 2025 Results
Cloudflare closed fiscal 2025 with a decisive beat on both top and bottom lines, capping a quarter that validated the company's aggressive push into AI-driven infrastructure. Revenue for Q4 came in at $614.51 million, up 33.6% year-over-year and ahead of the $591.24 million consensus by 3.94%, while non-GAAP EPS of $0.28 edged past the $0.27 estimate by 3.70%. The standout driver behind the momentum was deal velocity: Cloudflare closed its largest annual contract value deal ever and grew total new ACV nearly 50% year-over-year, its fastest expansion since 2021, as CEO Matthew Prince positioned the platform as the network AI agents run on and through. Free cash flow more than doubled to $99.44 million, representing a 16% margin. <a href="https://247wallst.com/investing/2026/02/10/live-earnings-will-cloudflare-rise-after-q4-earnings-tonight/">Shares surged roughly 12% after hours</a> on the results, with full-year 2026 revenue guidance of approximately $2.79 billion implying continued growth of around 29%, reinforcing investor confidence in Cloudflare's expanding enterprise footprint.
- Largest annual contract value deal ever closed, averaging $42.5 million per year
- Total new ACV grew nearly 50% year-over-year, fastest growth rate since 2021
- RPO year-over-year growth of 48% and Current RPO year-over-year growth of 34%
- AI and agentic computing driving demand across performance, security, and networking services
- Free cash flow margin expanded to 16% from 10% year-over-year in Q4
“We had an exceptionally strong end to 2025. In Q4, we closed our largest annual contract value deal ever—averaging $42.5 million per year—and total new ACV grew nearly 50 percent year-over-year, our fastest growth rate since 2021.”
Cloudflare CEO, on the earnings call
Forward Guidance & Outlook
For Q1 2026, Cloudflare expects revenue of $620.0 to $621.0 million, non-GAAP operating income of $70.0 to $71.0 million, and non-GAAP EPS of $0.23 on approximately 377 million diluted shares. For full-year 2026, the company expects revenue of $2,785.0 to $2,795.0 million, non-GAAP operating income of $378.0 to $382.0 million, and non-GAAP EPS of $1.11 to $1.12 on approximately 377 million diluted shares.
NET YoY Financials
Figures from SEC filings and company reports. Not investment advice.