Cloudflare (NET) Stock Jumps 16% After Q2 Revenue Beats and Guidance Raised

TLDR

• Cloudflare stock jumped 15.8% in pre-market trading after Q2 revenue hit $696.1 million, up 36% year-over-year
• Adjusted EPS came in at $0.29, beating the $0.27 analyst estimate
• Full-year 2026 revenue guidance raised to $2.864–$2.870 billion, above consensus
• AI agent traffic surpassed 50% of total network traffic for the first time
• Multiple analysts raised price targets, including TD Cowen lifting its target to $355

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Cloudflare posted Q2 revenue of $696.1 million, up 36% year-over-year, beating analyst expectations of around $664–$665 million. Adjusted earnings came in at $0.29 per share, ahead of the $0.27 consensus estimate.

CLOUDFLARE $NET Q2’26 EARNINGS HIGHLIGHTS

🔹 Revenue: $696.1M (Est. $666M) 🟢; +36% YoY
🔹 Adj. EPS: $0.29 (Est. $0.27) 🟢; +38% YoY
🔹 Oper Income: $96.1M (Est. $90.2M) 🟢; +33% YoY
🔹 FCF: $56.4M (Est. $59.2M); +69% YoY

Raises FY26 Guide:
🔹 Revenue: $2.86B-$2.87B (Est.… pic.twitter.com/EV1AZoDptD

— Wall St Engine (@wallstengine) August 6, 2026

The stock hit $329.46 in pre-market trading, surging 15.8% and blowing past its prior 52-week high of $305. It had traded as low as $158.83 over the past year.

Management raised full-year 2026 revenue guidance to $2.864–$2.870 billion, above the prior range and consensus. Third-quarter revenue guidance of $736–$737 million also came in ahead of Street expectations.

Cloudflare, Inc., NET

CEO Matthew Prince flagged a first for the company: non-human traffic, driven by AI agents, crossed 50% of total network traffic. It is a milestone Cloudflare pointed to as validation of its role as infrastructure for the agentic internet.

The large-customer cohort, those spending over $100,000 annually, grew 27% year-over-year to 4,698 customers. Dollar-based net retention improved to 120%.

Analysts Lift Price Targets

Several analysts responded by raising their price targets. Oppenheimer, Citizens, Truist, Mizuho, and RBC Capital all moved higher. TD Cowen went to $355 from $300 while keeping a Buy rating, citing record year-over-year net additions across all large customer tiers.

TD Cowen said Cloudflare also set records for large contracts. The firm said the company is well positioned as AI continues to develop.

Not everyone moved in the same direction. Jefferies held its rating at Hold, making the analyst reaction broadly but not universally bullish.

Market Context

The broader market gave little help in explaining the move. The Nasdaq gained 0.5% and the S&P 500 edged up 0.1% on the same day. The jump was entirely company-specific.

Cybersecurity peers CrowdStrike and Zscaler (ZS) were not cited as drivers. This one was all about Cloudflare’s own numbers.

The stock’s 52-week range, from $158.83 to its new pre-market high above $329, shows how sharply the earnings print reset expectations.

TD Cowen’s $355 price target represents the most recent analyst view on record following the results.