Cloudflare (NET) Earnings Date & Reports

Key Takeaways

• Revenue reached $639.8 million, up 34% year-over-year and exceeding analyst estimates.
• Non-GAAP net income per diluted share came in at $0.25, beating consensus expectations of $0.17.
• GAAP net loss narrowed to $22.9 million, or $0.07 per share.
• Non-GAAP operating income rose to $73.1 million, representing 11.4% of revenue.
• Company provided Q2 2026 revenue guidance of $664.0 million to $665.0 million.
• Full-year 2026 revenue outlook set at $2,805.0 million to $2,813.0 million.

Earnings Context and Why It Matters

Cloudflare’s first-quarter results highlight continued momentum in its connectivity cloud platform as artificial intelligence reshapes demand for secure, high-performance internet infrastructure. The quarter marked the company’s strongest revenue growth rate in recent periods, reflecting expanding adoption among large enterprises and developers. Investors closely monitor these reports for signals on margin expansion, customer retention, and the impact of AI-driven workloads on long-term growth trajectories in the competitive cloud security and networking sector.

Reported Results

Cloudflare reported total revenue of $639.8 million for the first quarter ended March 31, 2026, a 34% increase from the prior-year period. GAAP gross margin stood at 71.2%, while non-GAAP gross margin was 72.8%. The company posted a GAAP operating loss of $62.0 million and non-GAAP operating income of $73.1 million. GAAP net loss narrowed to $22.9 million, or $0.07 per share, compared with a $38.5 million loss, or $0.11 per share, in the first quarter of 2025. Non-GAAP net income reached $94.0 million, or $0.25 per diluted share, surpassing analyst estimates. Operating cash flow totaled $158.3 million, with free cash flow at $84.1 million.

AI Screener

Tickeron’s AI Screener is an AI-powered stock and ETF discovery tool that helps traders and investors filter the market based on technical patterns, fundamentals, trends, volatility, and AI-driven signals. Users can scan thousands of stocks and ETFs using customizable filters such as industry, market capitalization, technical indicators, price patterns, and performance metrics. The screener helps identify trade ideas, trending stocks, breakout candidates, and market opportunities more efficiently than manual screening. Explore the AI Screener to uncover potential opportunities aligned with your strategy.

Market Reaction and Investor Sentiment

Shares of Cloudflare reacted positively following the earnings release, supported by the revenue beat and improved profitability metrics. Market participants focused on the company’s forward guidance and commentary around AI adoption as key drivers of sentiment. The results reinforced confidence in Cloudflare’s ability to capitalize on growing demand for its platform amid broader industry shifts toward AI infrastructure.

Forward Outlook and Key Factors to Monitor

Cloudflare issued guidance for the second quarter of fiscal 2026, expecting revenue between $664.0 million and $665.0 million. Non-GAAP income from operations is projected at $90.0 million to $91.0 million, with non-GAAP net income per share of $0.27.

For the full year, the company anticipates revenue of $2,805.0 million to $2,813.0 million. Non-GAAP operating income is expected between $418.0 million and $421.0 million, and non-GAAP net income per share between $1.19 and $1.20.

Investors will track execution on the announced restructuring plan aimed at an agentic AI-first operating model, including workforce reductions and associated charges. Additional focus areas include remaining performance obligations growth, large customer expansion, and the contribution of AI-related workloads to overall revenue. Margin trends and cash flow generation will also remain central to assessing operational leverage in coming quarters.

Disclaimer

The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.

Disclaimers and Limitations