Cloudflare, Inc.

New York Stock Exchange
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Slightly Bullish +25

Cloudflare (NET) to Post Quarterly Earnings on Wednesday

📅 Cloudflare is set to post Q2 2026 earnings on Wednesday, August 5th, with an analyst consensus EPS estimate of $0.2684 and revenue expectation of $664.68 million.

📈 The company previously beat Q1 estimates with $0.25 EPS and $639.75 million in revenue, achieving a 33.5% year-over-year revenue increase.

💰 Cloudflare trades at a market capitalization of $98.68 billion with a P/E ratio of -1,116.70 due to negative net margins of -3.72% and negative ROE of -5.65%.

🏦 Institutional ownership is high at 82.68%, with significant recent buying from hedge funds like Sei Investments Co. (+40.1%) and Cerity Partners LLC (+30.1%).

📊 Analyst ratings are mixed, featuring a 'Moderate Buy' consensus target of $262.00, though Jefferies recently downgraded the stock to a 'hold' rating.

🚀 Truist Financial raised its price target to $300.00 and reaffirmed a 'buy' rating, while UBS Group increased its target from $220.00 to $250.00.

📉 The stock has a beta of 1.67 and is currently trading above its 50-day moving average ($250.08) but below its 200-day moving average ($215.35).

Bullish Signals
  • Cloudflare achieved a 33.5% year-over-year revenue growth in the previous quarter, demonstrating strong top-line expansion.
  • The company beat analyst EPS estimates by $0.02 in Q1 2026 with reported earnings of $0.25 versus a consensus of $0.23.
  • Major institutional investors like Sei Investments Co. and Cerity Partners LLC have significantly increased their stakes, indicating confidence in the business model.
  • Truist Financial raised its price target to $300.00 and maintained a 'buy' rating, suggesting strong upside potential from current levels.
  • UBS Group boosted its price target to $250.00 while maintaining a neutral stance, reflecting positive sentiment among major banks.
Risk Factors
  • Cloudflare reported negative net margins of -3.72% and negative return on equity of -5.65%, indicating profitability challenges despite revenue growth.
  • The consensus analyst expectation for the current fiscal year is $0 EPS, highlighting significant uncertainty about near-term profitability.
Full Analysis
Cloudflare (NYSE: NET) is scheduled to release its Q2 2026 earnings report after market close on Wednesday, August 5th, with an analyst consensus expectation of $0.2684 per share in EPS and $664.68 million in revenue. The company previously reported Q1 2026 results on May 7th, where it beat estimates with $0.25 EPS and $639.75 million in revenue, marking a 33.5% year-over-year growth rate despite negative net margins of -3.72%. Analyst sentiment remains mixed ahead of the upcoming report, with Truist Financial raising its price target to $300 and maintaining a 'buy' rating, while Jefferies Financial Group downgraded the stock to a 'hold'. The consensus average rating is currently a 'Moderate Buy' with a target price of $262.00, though the company trades at a significant premium with a P/E ratio of -1,116.70 and a market cap of $98.68 billion. Institutional ownership stands at 82.68%, driven by recent stake increases from major hedge funds including Sei Investments Co., which boosted its position by 40.1% to hold shares valued at over $64 million, and Cerity Partners LLC, which raised its stake by 30.1%. The stock has a beta of 1.67 and trades between a 52-week low of $158.83 and a high of $293.80.