Cloudflare, Inc.

(New York Stock Exchange)
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Bullish +65

Cloudflare stock trades at EUR 313.65 with P/ E minus 602.3

Analyst upgrade Company update AI-generated analysis

πŸ“ˆ Cloudflare reported second-quarter 2026 revenue of USD 696.06 million, representing a 35.90% increase compared to the year-ago quarter.

πŸ’° The company achieved a GAAP gross margin of 75%, generating USD 499.52 million in gross profit despite remaining loss-making on a GAAP basis.

πŸ“Š Market capitalization stood at USD 124.2 billion, significantly larger than peers Fastly (USD 4.3B) and Akamai (USD 14.8B).

πŸ” Oppenheimer raised its price target to USD 430.00 and maintained an Outperform rating on October 9, 2026.

πŸ“… The next earnings date is set for October 29, 2026, serving as a key reference point for valuation.

πŸ‘₯ Cloudflare lists 4,600 large customers as of the second quarter of 2026.

πŸ“‰ The stock traded at USD 349.83 with a negative P/E ratio of -602.32 due to GAAP losses.

πŸ“ˆ Session volume was 413,922 shares, well below the average daily volume of 3,326,723 shares.

Bullish Signals
  • Cloudflare achieved a 35.90% year-over-year revenue increase in Q2 2026, reaching USD 696.06 million.
  • The company maintained a strong 75% GAAP gross margin, generating USD 499.52 million in gross profit.
  • Oppenheimer analyst firm raised its price target to USD 430.00 and kept an Outperform rating.
  • Cloudflare serves 4,600 large customers, indicating strong enterprise adoption of its security and performance platform.
  • Market capitalization of USD 124.2 billion establishes a dominant position relative to peers Fastly and Akamai.
Risk Factors
  • The company remained loss-making on a GAAP basis in Q2 2026, resulting in a negative P/E ratio of -602.32.
  • Current trading price is USD 191.00 above the 52-week low, suggesting potential volatility or lack of immediate downside protection.
Full Analysis
Cloudflare (NET) traded at approximately USD 349.83 on October 12, 2026, with a market capitalization of USD 124.2 billion. The stock exhibited significant volatility during the session, ranging from a low of USD 346.14 to a high of USD 362.75, while trading volume reached 413,922 shares against an average daily volume of over 3.3 million. Financial performance for the second quarter of 2026 showed robust revenue growth, with total revenue reaching USD 696.06 million, a 35.90% increase year-over-year. Gross profit stood at USD 499.52 million, resulting in a GAAP gross margin of 75%. Despite this strong top-line expansion and a customer base of 4,600 large enterprises, the company remained loss-making on a GAAP basis, reflected in a negative P/E ratio of -602.32. Analyst sentiment remains bullish, with Oppenheimer raising its price target from USD 380.00 to USD 430.00 while maintaining an Outperform rating as of October 9, 2026. The company's platform continues to focus on cloud security, performance, and developer services, positioning it against peers like Fastly and Akamai, which hold significantly smaller market capitalizations. Key upcoming catalysts include the next earnings report scheduled for October 29, 2026, which analysts will scrutinize for further growth execution details. The current valuation frame is described as demanding given the negative P/E, making future financial results and operational efficiency the primary drivers for investor sentiment.