Cloudflare Shares Power Higher Friday: What's Going On?

Cloudflare Inc. (NYSE:NET) shares are trading higher Friday after the company reported better-than-expected third-quarter financial results Thursday after the market closed and issued fourth-quarter guidance above estimates. The company also raised its fiscal 2026 guidance above estimates.

• Cloudflare shares are climbing with conviction. What’s behind NET gains?

Cloudflare Beats Estimates as Revenue Rises 39% to Record $782.5M

Cloudflare reported third-quarter adjusted earnings per share of 38 cents, beating the consensus estimate of 34 cents. It reported revenue of $782.513 million, up 39% from a year earlier, beating the consensus estimate of $738.532 million.

Net cash from operating activities was $215.4 million, up from $167.1 million a year earlier. Free cash flow was $82.1 million, or 10% of revenue, compared with $75.0 million, or 13% of revenue, a year earlier. Current remaining performance obligations rose 37% from a year earlier, and cash, cash equivalents and available-for-sale securities were $5.1287 billion as of Sept. 30.

"The third quarter was Cloudflare’s best quarter ever," said Matthew Prince, Cloudflare’s co-founder and CEO. He said the company crossed $3 billion in annualized revenue and delivered its fastest revenue growth in nearly four years while expanding profitability.

Cloudflare Guides Q4 Above Estimates, Raises Fiscal 2026 Outlook

For the fourth quarter, Cloudflare expects adjusted earnings per share of 43 cents, versus the consensus estimate of 38 cents, and revenue of $845 million to $846 million, versus the consensus estimate of $797.673 million.

The company raised its fiscal 2026 adjusted earnings per share guidance to $1.35 from $1.25 to $1.26, versus the consensus estimate of $1.28, and raised its fiscal 2026 revenue guidance to $2.963 billion to $2.964 billion from $2.864 billion to $2.870 billion, versus the consensus estimate of $2.872 billion.

Cloudflare Shares Trade Higher

NET Price Action: At the time of publication, Cloudflare shares are trading 19.37% higher at $291.87, according to data from Benzinga Pro.

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