Cloudflare Reports 34% Revenue Growth, Exceeds Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy NET?
Source: Benzinga
- Strong Revenue Growth: Cloudflare reported a 34% year-on-year revenue increase, surpassing expectations, with management projecting a 29% revenue growth target for 2026, indicating sustained strong performance in the cloud computing sector.
- Sales Capacity Enhancement: The company ramped up its sales capacity at the fastest pace since 2022, achieving notable success in large deals and deepening penetration of AI inferencing and edge compute products, thereby enhancing its competitive position in the market.
- Historic Contract Achievement: Cloudflare closed its largest annual contract in history, averaging $42.5 million per year, showcasing strong performance in customer acquisition and contract value, although revenue growth for 2026 may experience some deceleration.
- Positive Market Reaction: Following the earnings report, Cloudflare's stock rose 4.24% to $187.62, reflecting market optimism regarding its future growth potential, particularly driven by elevated demand stemming from AI adoption.
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Analyst Views on NET
Wall Street analysts forecast NET stock price to rise
25 Analyst Rating
15 Buy
10 Hold
0 Sell
Moderate Buy
Current: 185.170
Low
131.00
Averages
253.24
High
318.00
Current: 185.170
Low
131.00
Averages
253.24
High
318.00
About NET
Cloudflare, Inc. is a connectivity cloud company. Its full suite of products consists of its website and application services to deliver security, performance, and reliability for an organization's websites, applications, and application programming interfaces (APIs); its secure access service edge (SASE) platform, which contains its suite of Zero Trust and network services solutions to help ensure traffic in and out of an organization’s internal network and devices is verified and authorized as well as to securely connect data centers, cloud services, and branch offices to an organization with its Connectivity Cloud; its developer-based solutions to build and deploy serverless applications with scale, performance, security and reliability, and its consumer offerings. Its website and application security product offerings include Web Application Firewall, Bot Management, Distributed Denial of Service Protection, API Security, SSL/TLS Encryption, Script Management, and Security Center.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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