Cloudflare, Inc.

(New York Stock Exchange)
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Bullish +65

TD Cowen raises Cloudflare stock target to USD 375.00

Analyst upgrade AI-generated analysis

πŸ“ˆ TD Cowen raised its price target for Cloudflare (NET) from USD 355.00 to USD 375.00 while maintaining a Buy rating.

πŸ’° Cloudflare reported Q2 revenue of USD 696.10 million, up 36% year over year, driven by strong enterprise adoption.

πŸ“Š Non-GAAP operating margin expanded to 13.80%, indicating improved profitability as the company scales its infrastructure business.

πŸš€ Management guided for Q3 revenue of USD 736-737 million and full-year 2026 revenue between USD 2.864 billion and USD 2.870 billion.

🀝 The number of customers spending over USD 100,000 annually grew by 27% year over year to reach 4,698 clients.

⚠️ Cloudflare warned that usage-based contracts may make quarter-to-quarter revenue forecasting less predictable in the future.

πŸ“‰ The stock trades at EUR 280.45, below its 52-week high of USD 370.35 but above the low of USD 158.83.

πŸ“… Q3 earnings are scheduled for November 5, 2026, after US market close with a call at 5:00 p.m. ET.

Bullish Signals
  • TD Cowen raised its price target from USD 355.00 to USD 375.00 and maintained a Buy rating following strong Q2 results.
  • Cloudflare achieved a 36% year-over-year revenue increase in the second quarter, reporting USD 696.10 million in total revenue.
  • The company demonstrated improved profitability with a non-GAAP operating margin reaching 13.80% during the reported period.
  • Management guided for Q3 revenue of USD 736-737 million, signaling continued strong growth momentum ahead of the earnings release.
  • Enterprise adoption is accelerating, with the count of customers spending over USD 100,000 annually rising by 27% year over year.
Risk Factors
  • Cloudflare warned that its usage-based pricing model introduces unpredictability to quarter-to-quarter revenue forecasting.
  • The stock is currently trading at EUR 280.45, which is below its 52-week high of USD 370.35.
Full Analysis
TD Cowen analyst firm raised its price target for Cloudflare (NET) from USD 355.00 to USD 375.00 on October 13, 2026, maintaining a Buy rating ahead of the company's upcoming third-quarter earnings report scheduled for November 5, 2026. The analyst action reflects continued confidence in Cloudflare's growth trajectory and validates the stock's valuation based on recent strong performance metrics. Cloudflare reported robust second-quarter revenue of USD 696.10 million, representing a 36% year-over-year increase. This significant growth was accompanied by a non-GAAP operating margin of 13.80%, demonstrating improved profitability as the company scales its infrastructure services. The strong Q2 figures serve as the primary driver for the analyst's target price increase. Management provided forward guidance projecting third-quarter revenue between USD 736 million and USD 737 million, with a full-year 2026 revenue expectation ranging from USD 2.864 billion to USD 2.870 billion. The company highlighted that it now has 4,698 enterprise customers spending over USD 100,000 annually, a figure that grew by 27% year over year, underscoring deepening relationships with high-value clients. Despite the positive outlook, Cloudflare noted that its usage-based pricing model introduces some unpredictability to quarter-to-quarter revenue forecasting. With a market capitalization of approximately USD 115 billion and a stock price trading around EUR 280.45, investors are closely monitoring whether sustained high growth can be maintained as the company navigates these new contractual dynamics.