Q1 26 EPS
$0.25
Q1 26 Revenue
$639.8M
BEAT +2.75%
Est. $622.6M
vs S&P Since Q1 26
+4.3%
BEATING MARKET
NET +6.6% vs S&P +2.3%
Market Reaction
Did NET Beat Earnings? Q1 2026 Results
Cloudflare delivered a strong first quarter for fiscal 2026, beating Wall Street expectations on both the top and bottom lines as the network security and cloud infrastructure company sustained its growth momentum. Revenue of $639.75 million rose 33.… Read more Cloudflare delivered a strong first quarter for fiscal 2026, beating Wall Street expectations on both the top and bottom lines as the network security and cloud infrastructure company sustained its growth momentum. Revenue of $639.75 million rose 33.5% year over year, coming in ahead of the $622.61 million consensus estimate, while non-GAAP EPS of $0.25 cleared the $0.23 consensus by 7.02%, up from $0.16 in the year-ago period. The results were underpinned by robust demand across Cloudflare's platform, with current remaining performance obligations growing 34% year over year, signaling durable forward bookings. Free cash flow improved to $84.07 million, or 13% of revenue, compared to $52.87 million a year ago. The headline numbers were accompanied by a significant strategic shift, as the company announced a workforce reduction of approximately 1,100 employees in a transition to what CEO Matthew Prince described as an agentic AI-first operating model, with associated restructuring charges of $140 to $150 million expected primarily in Q2. Looking ahead, Cloudflare guided Q2 revenue of $664 to $665 million and full-year 2026 revenue of $2.81 to $2.81 billion, with non-GAAP EPS of $1.19 to $1.20.
Key Takeaways
- • 34% year-over-year revenue growth
- • 34% year-over-year Current RPO growth
- • AI-driven re-platforming of the Internet cited as the biggest tailwind in company history
- • Interest income nearly doubled year-over-year to $40.2 million
- • Free cash flow margin improved to 13% from 11% year-over-year
NET Forward Guidance & Outlook
For Q2 2026, Cloudflare expects revenue of $664.0–$665.0 million, non-GAAP operating income of $90.0–$91.0 million, and non-GAAP EPS of $0.27 on approximately 377 million diluted shares. For full-year 2026, the company expects revenue of $2,805.0–$2,813.0 million, non-GAAP operating income of $418.0–$421.0 million, and non-GAAP EPS of $1.19–$1.20 on approximately 375 million diluted shares. Additionally, the company announced a workforce reduction of approximately 1,100 people as part of its transition to an agentic AI-first operating model, with expected restructuring charges of $140.0–$150.0 million, primarily in Q2 2026.
NET YoY Financials
Q1 2026 vs Q1 2025, source: SEC Filings
“We had a very strong start to 2026. 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.”
— Matthew Prince, Q1 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
10 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 | — | $0.25 | — | $639.8M | +2.75% |
| Q4 25 BEAT FY | $0.27 | $0.28 | +3.70% | $614.5M | +3.94% |
| 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 | +5.56% | $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 | — | — | — | — |