Companies /Technology

Cloudflare Inc - Class A

NYSE: NET Software - Infrastructure
$300.88
▼ $7.35 (−2.38%) today
Markets open · 3:38pm ET

Q1 2026 Earnings

Reported May 7, 2026, 4:21pm ET · SEC source
$0.25
Beat +6.47%
EPS · est. $0.23
$639.8M
Beat +2.72%
Revenue · est. $622.8M
+13.7%
Beating market
NET vs S&P since report
5 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−9%0+9%+18%May 7May 8report 4:21pm ETearnings+0.8%−10.5%
−9%0+9%+18%May 7May 8earnings+0.8%−10.5%
NET −10.5%S&P 500 +0.8%
−9%0+9%+18%May 7May 8report 4:21pm ETearnings+2.3%−10.5%
−9%0+9%+18%May 7May 8earnings+2.3%−10.5%
NET −10.5%NASDAQ +2.3%
−10%0+10%May 6May 15report 4:21pm ETearnings+1.0%−11.3%
−10%0+10%May 6May 15earnings+1.0%−11.3%
NET −11.3%S&P 500 +1.0%
−10%0+10%May 6May 15report 4:21pm ETearnings+2.0%−11.3%
−10%0+10%May 6May 15earnings+2.0%−11.3%
NET −11.3%NASDAQ +2.0%
−23.62%
Day of report
−1.33%
Next session
+0.73%
One week
+12.00%
30 days

S&P 500 over the same 30 days: −1.65%.

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 33.5% 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

“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.”

Cloudflare CEO, on the earnings call

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 · SEC filings Q1 2025 Q1 2026
$0$200.0M$400.0M$600.0M$479.1M$639.8MRevenue$363.5M$455.6MGross Profit$-74,182,123$-61,994,000Operating Income$-16,332,099$-22,927,000Net Income
$0$200.0M$400.0M$600.0MRevenueGross ProfitOperating IncomeNet Income

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