TLDR
- Cloudflare reported Q2 revenue of $696.1 million, up 35.9% year over year, beating estimates of $664.7 million
- EPS came in at $0.29, topping the $0.27 consensus estimate
- Management raised full-year 2026 revenue guidance to $2.864B-$2.870B, above prior forecasts
- Oppenheimer raised its price target from $330 to $380, Goldman Sachs raised its target to $389; both maintain Buy-equivalent ratings
- Insider selling from the CFO and co-founder totaled millions of dollars, though transactions were under pre-arranged 10b5-1 plans
Cloudflare stock hit $313.40 on Friday, up $28.97 in midday trading, after the company posted a strong second quarter and lifted its full-year outlook.
Q2 revenue came in at $696.1 million, up 35.9% from the same period last year. That beat analyst expectations of $664.7 million by a comfortable margin.
Adjusted EPS of $0.29 also topped the $0.27 consensus. A year ago, the company posted $0.21 per share.
The earnings report triggered a wave of upward price target revisions from Wall Street analysts.
Oppenheimer raised its target from $330 to $380, keeping an “outperform” rating. At that target, the implied upside from Friday’s price is around 21%.
Goldman Sachs made one of the larger moves, lifting its target from $266 to $389 while maintaining a Buy rating. The firm cited agentic AI adoption and expansion of the Workers platform as key drivers.
BTIG Research also raised its target, moving from $314 to $382, reiterating a Buy.
Morgan Stanley moved its target from $305 to $322 with an “overweight” rating. Mizuho went from $260 to $310, also at “outperform.”
Raised Guidance Drives Optimism
Management raised its full-year 2026 revenue forecast to between $2.864 billion and $2.870 billion. That’s up from the prior range of $2.805 billion to $2.813 billion.
Third-quarter guidance of $736 million to $737 million in revenue, with EPS of $0.34, also came in ahead of what analysts had expected.
Cloudflare said AI-agent traffic is growing on its network, with businesses using its infrastructure to route and secure AI applications.
New products like the AEO Visibility Dashboard, Identity-Aware AI Gateway, and Cloudflare OS were highlighted as potential growth drivers for enterprise customers.
Insider Selling Worth Watching
Not everything was a green light. CFO Thomas Seifert sold 55,000 shares on August 4th at an average price of $300.30, for a total of $16.5 million. That reduced his stake by 32.58%.
Co-founder Michelle Zatlyn sold 35,080 shares in May at $213.98, cutting her position by 42.52%.
Over the last quarter, insiders sold a combined 749,532 shares valued at roughly $183.9 million. All transactions were made under pre-arranged 10b5-1 plans.
The broader analyst consensus sits at “Moderate Buy” with an average price target of $294.22, though that average trails the post-earnings surge.
Cantor Fitzgerald remains at “neutral” with a $250 target, and three analysts still carry Sell ratings on the stock.
NET’s 52-week range runs from $158.83 to $323.62. Friday’s close of $313.40 puts it near the top of that range.
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