Cloudflare's Q4 revenue up 34%, beats estimates

Cloudflare

10/02/2026 21:24

Overview

Connectivity cloud firm's Q4 revenue grew 34% yr/yr, beating analysts' expectations

Adjusted EPS for Q4 beat analyst expectations

Company closed its largest annual contract value deal ever, averaging $42.5 mln per year

Outlook

Cloudflare expects Q1 2026 revenue between $620 mln and $621 mln

Company projects full-year 2026 revenue of $2.785 bln to $2.795 bln

Cloudflare anticipates Q1 2026 non-GAAP EPS of $0.23

Result Drivers

AI AND AGENTS - Demand for Cloudflare's services was driven by the shift towards AI and agents, which use its platform and network

LARGEST CONTRACT - Closed largest annual contract value deal; total new ACV grew nearly 50% yr/yr

RPO GROWTH - Delivered RPO year-over-year growth of 48% and Current RPO year-over-year growth of 34%

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$614.51 mln
$591.28 mln (28 Analysts)
Q4 Adjusted EPS
Beat
$0.28
$0.27 (29 Analysts)
Q4 EPS
-$0.03
Q4 Net Income
-$12.08 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 21 "strong buy" or "buy", 12 "hold" and 3 "sell" or "strong sell"

The average consensus recommendation for the it services & consulting peer group is "buy"

Wall Street's median 12-month price target for Cloudflare Inc is $236.00, about 35.8% above its February 9 closing price of $173.75

The stock recently traded at 144 times the next 12-month earnings vs. a P/E of 220 three months ago

Press Release: ID:nBwbTTJXQa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)