Cloudflare Q2 adjusted profit beats estimates

Cloudflare

31/07/2025 21:24

Overview

Cloudflare Q2 revenue grows 28% yr/yr, beating analyst expectations, per LSEG data

Adjusted EPS for Q2 beats consensus, per LSEG data

Q2 Non-GAAP income from operations of $72.3 million, or 14% of revenue

Outlook

Cloudflare expects Q3 revenue of $543.5 mln to $544.5 mln

Company anticipates full-year revenue of $2,113.5 mln to $2,115.5 mln

Cloudflare sees Q3 non-GAAP income from operations at $75 mln to $76 mln

Company projects full-year non-GAAP EPS of $0.85 to $0.86

Result Drivers

STRONG CUSTOMER DEMAND - Cloudflare reports strong demand from largest customers, driving revenue growth

AI INNOVATION - Strategic wins centered around AI-driven internet business models, boosting growth

LONGER DEALS - Signing bigger and longer deals contributed to revenue increase

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$512.32 mln
$501.30 mln (26 Analysts)
Q2 Adjusted EPS
Beat
$0.21
$0.18 (27 Analysts)
Q2 EPS
-$0.15
Q2 Adjusted Net Income
Beat
$75.10 mln
$67.50 mln (25 Analysts)
Q2 Net Income
-$50.45 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 19 "strong buy" or "buy", 13 "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 $186.00, about 8% below its July 30 closing price of $200.85

The stock recently traded at 214 times the next 12-month earnings vs. a P/E of 130 three months ago

Press Release: ID:nBw1ZpDy1a

(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.)