Cloudflare (NYSE:NET) Posts Earnings Results, Beats Expectations By $0.02 EPS

Cloudflare (NYSE:NET) released its quarterly earnings data on Wednesday. The company reported $0.29 earnings per share for the quarter, topping the consensus estimate of $0.27 by $0.02, FiscalAI reports. The business had revenue of $696.06 million during the quarter, compared to analyst estimates of $664.66 million. Cloudflare had a negative return on equity of 5.65% and a negative net margin of 3.72%.The company’s revenue was up 35.9% compared to the same quarter last year. During the same period last year, the company posted $0.21 EPS.

Cloudflare Stock Performance

Shares of NYSE:NET traded up $18.06 during midday trading on Friday, hitting $302.49. The company’s stock had a trading volume of 4,062,298 shares, compared to its average volume of 4,303,498. The company has a debt-to-equity ratio of 1.29, a quick ratio of 1.96 and a current ratio of 1.96. The stock’s 50 day simple moving average is $255.83 and its 200 day simple moving average is $218.26. The stock has a market capitalization of $106.92 billion, a price-to-earnings ratio of -1,208.72, a PEG ratio of 219.10 and a beta of 1.65. Cloudflare has a fifty-two week low of $158.83 and a fifty-two week high of $324.73.

Key Cloudflare News

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Cloudflare beat second-quarter expectations. Revenue rose 35.9% year over year to $696.1 million, exceeding estimates of approximately $664.7 million. Adjusted earnings of $0.29 per share also topped the $0.27 consensus. Cloudflare Q2 results
• Positive Sentiment: Management raised its full-year forecast above analyst expectations. Cloudflare now expects 2026 revenue of roughly $2.864 billion to $2.870 billion, up from its prior $2.805 billion-$2.813 billion range. Third-quarter guidance of $736 million-$737 million in revenue and $0.34 EPS also exceeded consensus estimates. Cloudflare raises outlook
• Positive Sentiment: AI-agent traffic is supporting demand. Cloudflare said businesses increasingly rely on its network to route and secure AI applications. New offerings, including the AEO Visibility Dashboard, Identity-Aware AI Gateway and Cloudflare OS, could broaden its enterprise opportunity. Market update on Cloudflare
• Positive Sentiment: BTIG Research raised its price target. BTIG increased its target from $314 to $382 and reiterated a Buy rating, adding to favorable Wall Street commentary after the earnings release. BTIG price-target update
• Neutral Sentiment: Analyst sentiment remains mixed. The broader consensus is still favorable, but some firms maintain Hold or Sell ratings. Cloudflare’s high valuation and elevated volatility make the shares sensitive to changes in growth expectations.
• Negative Sentiment: Insider selling could pressure sentiment. CEO Matthew Prince, CFO Thomas Seifert and director Carl Ledbetter reported sales totaling millions of dollars. The transactions were made under pre-arranged Rule 10b5-1 plans and therefore do not necessarily indicate deteriorating confidence, but they may encourage profit-taking. Cloudflare insider filing

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on NET shares. BTIG Research upped their price target on shares of Cloudflare from $314.00 to $382.00 and gave the company a “buy” rating in a research report on Friday. Jefferies Financial Group set a $350.00 price objective on Cloudflare in a research note on Friday. Deutsche Bank Aktiengesellschaft upgraded Cloudflare to a “buy” rating in a report on Tuesday, July 7th. UBS Group reaffirmed a “neutral” rating and set a $350.00 price objective on shares of Cloudflare in a research report on Friday. Finally, Benchmark lowered shares of Cloudflare to an “underperform” rating in a research note on Tuesday, July 7th. Two analysts have rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating, six have issued a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $294.22.

Insider Activity at Cloudflare

In related news, CEO Matthew Prince sold 33,631 shares of the stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $296.10, for a total transaction of $9,958,139.10. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark J. Hawkins sold 133 shares of the company’s stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $277.74, for a total value of $36,939.42. Following the transaction, the director directly owned 10,632 shares in the company, valued at approximately $2,952,931.68. This represents a 1.24% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 749,532 shares of company stock valued at $183,882,628 in the last quarter. Company insiders own 10.66% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of NET. HM Payson & Co. acquired a new position in Cloudflare in the 4th quarter worth $25,000. Wiser Advisor Group LLC acquired a new position in Cloudflare during the third quarter worth $26,000. Wexford Capital LP acquired a new position in shares of Cloudflare during the 3rd quarter worth about $30,000. Brown Brothers Harriman & Co. increased its position in shares of Cloudflare by 55.4% in the third quarter. Brown Brothers Harriman & Co. now owns 157 shares of the company’s stock valued at $34,000 after acquiring an additional 56 shares during the last quarter. Finally, JPL Wealth Management LLC acquired a new stake in shares of Cloudflare in the 3rd quarter valued at approximately $45,000. Institutional investors own 82.68% of the company’s stock.

About Cloudflare

Cloudflare, Inc is a global web infrastructure and security company that provides a suite of services designed to improve the performance, reliability and security of internet properties. Its core offerings include a content delivery network (CDN), distributed denial-of-service (DDoS) protection, managed DNS, and a web application firewall (WAF). Cloudflare also provides tools for bot management, SSL/TLS, load balancing and rate limiting to help organizations maintain uptime and protect web applications from attack.

In addition to traditional edge and security services, Cloudflare has expanded into edge computing and developer platforms.