Cloudflare Q4 Earnings Beat Expectations, Shares Surge Over 9%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy NET?
Source: stocktwits
- Earnings Beat: Cloudflare reported Q4 2025 revenue of $614.5 million, a 34% year-over-year increase, surpassing analyst expectations of $591.67 million, indicating strong market performance.
- AI-Driven Demand: CEO Matthew Prince highlighted that the rise of artificial intelligence and agents has driven demand for Cloudflare's services, creating a virtuous cycle that enhances the company's market position.
- Positive Outlook: The company provided Q1 revenue guidance of $620 million to $621 million, exceeding the market average expectation of $613.88 million, reflecting confidence in future growth.
- Stock Surge: Following the earnings report, Cloudflare's shares surged over 9% in after-hours trading, demonstrating investor optimism regarding the company's performance and future prospects.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy NET?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on NET
Wall Street analysts forecast NET stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NET is 253.24 USD with a low forecast of 131.00 USD and a high forecast of 318.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
25 Analyst Rating
15 Buy
10 Hold
0 Sell
Moderate Buy
Current: 173.750
Low
131.00
Averages
253.24
High
318.00
Current: 173.750
Low
131.00
Averages
253.24
High
318.00
About NET
Cloudflare, Inc. is a connectivity cloud company. Its full suite of products consists of its website and application services to deliver security, performance, and reliability for an organization's websites, applications, and application programming interfaces (APIs); its secure access service edge (SASE) platform, which contains its suite of Zero Trust and network services solutions to help ensure traffic in and out of an organization’s internal network and devices is verified and authorized as well as to securely connect data centers, cloud services, and branch offices to an organization with its Connectivity Cloud; its developer-based solutions to build and deploy serverless applications with scale, performance, security and reliability, and its consumer offerings. Its website and application security product offerings include Web Application Firewall, Bot Management, Distributed Denial of Service Protection, API Security, SSL/TLS Encryption, Script Management, and Security Center.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Analysis of After-Hours Trading Performance of Multiple Companies
- Robinhood Revenue Decline: Robinhood's Q4 revenue of $1.28 billion fell short of the $1.34 billion expected by analysts, with transaction revenue also missing at $776 million, leading to a 7% drop in stock price, reflecting market concerns over its profitability.
- Lyft's Poor Performance: Lyft's stock dropped 15%, as its Q4 bookings of $5.07 billion met expectations, but its first-quarter adjusted EBITDA guidance of $120 million to $140 million fell short of the $139.8 million consensus, indicating pressure on profitability.
- Mattel's Disappointing Guidance: Mattel's stock plummeted 25%, with full-year adjusted earnings guidance ranging from $1.18 to $1.30 per share, significantly below the $1.77 expected by the market, and Q4 results also missed expectations, highlighting weakness in the toy market.
- Cloudflare's Strong Outlook: Cloudflare's stock surged 10% after projecting Q1 revenue between $620 million and $621 million, exceeding the $614 million consensus, and its Q4 results also surpassed analyst expectations, showcasing strong growth potential in the cloud networking market.
See More
CloudFlare Q4 Earnings Exceed Expectations
- Earnings Beat: CloudFlare reported a Q4 non-GAAP EPS of $0.28, beating estimates by $0.01, indicating a sustained improvement in profitability that strengthens its market position in cybersecurity.
- Significant Revenue Growth: The company achieved Q4 revenue of $614.5 million, a 33.6% year-over-year increase, surpassing market expectations by $23.14 million, reflecting strong demand for its products and services and driving overall business growth.
- Optimistic Future Outlook: For Q1 2026, total revenue is expected to be between $620.0 million and $621.0 million, exceeding the consensus of $614.19 million, showcasing the company's confidence in future growth, although non-GAAP EPS guidance is slightly below expectations.
- Robust Annual Projections: The full-year 2026 revenue is projected to be between $2.785 billion and $2.795 billion, above the consensus of $2.74 billion, indicating the company's strategic commitment to expanding market share and enhancing profitability.
See More
Cloudflare Q4 Results Exceed Expectations with Strong Revenue Growth
- Significant Revenue Growth: Cloudflare reported Q4 revenue of $614.5 million, representing a 34% year-over-year increase, exceeding market expectations and demonstrating the company's strong performance in the enterprise sector, thereby reinforcing its leadership in the cybersecurity space.
- Improved Profitability: The non-GAAP EPS of $0.28 surpassed expectations by $0.01, indicating positive progress in cost control and operational efficiency, which enhances investor confidence in the company's financial health.
- Positive Market Reaction: Following the earnings beat, Cloudflare's stock price rose, reflecting market optimism regarding its future growth potential, which may attract more institutional investors to the stock.
- Valuation Concerns Intensify: Despite the strong performance, there are ongoing concerns regarding Cloudflare's valuation, prompting investors to closely monitor its future profitability and competitive landscape to assess long-term investment value.
See More
Cloudflare Reports Q4 2025 Earnings Beat Expectations
- Strong Earnings Report: Cloudflare reported adjusted EPS of $0.28 for Q4 2025, beating the consensus estimate of $0.27, while GAAP EPS of -$0.03 matched expectations, indicating stable profitability.
- Significant Revenue Growth: The company achieved a 34% year-over-year revenue increase to $614.5 million, surpassing the $591.3 million estimate, reflecting robust performance and sustained customer demand in the cloud connectivity market.
- Optimistic Outlook: For Q1 2026, Cloudflare expects revenue between $620 million and $621 million, exceeding the $614 million consensus, while projecting adjusted EPS of $0.23, slightly below the $0.25 estimate, showcasing confidence in future growth.
- Record Contract Value: In Q4, Cloudflare closed its largest annual contract value deal ever, averaging $42.5 million per year, with total new ACV growing nearly 50%, highlighting the company's strong growth potential in the rapidly evolving AI market.
See More
Cloudflare Q4 Earnings Beat Expectations, Shares Surge Over 9%
- Earnings Beat: Cloudflare reported Q4 2025 revenue of $614.5 million, a 34% year-over-year increase, surpassing analyst expectations of $591.67 million, indicating strong market performance.
- AI-Driven Demand: CEO Matthew Prince highlighted that the rise of artificial intelligence and agents has driven demand for Cloudflare's services, creating a virtuous cycle that enhances the company's market position.
- Positive Outlook: The company provided Q1 revenue guidance of $620 million to $621 million, exceeding the market average expectation of $613.88 million, reflecting confidence in future growth.
- Stock Surge: Following the earnings report, Cloudflare's shares surged over 9% in after-hours trading, demonstrating investor optimism regarding the company's performance and future prospects.
See More
US Retail Sales Weakness Impacts Markets
- Retail Sales Stagnation: US retail sales for December were unchanged month-over-month, falling short of the +0.4% expectation, indicating weakness in consumer spending that could lead to a downward revision in Q4 GDP, thereby impacting overall economic growth forecasts.
- Employment Cost Index Decline: The Q4 employment cost index rose by 0.7% quarter-over-quarter, below the expected 0.8%, marking the smallest increase in 4.5 years, suggesting easing labor cost pressures that may influence Federal Reserve monetary policy decisions.
- Positive Earnings Outlook: More than half of S&P 500 companies have reported earnings, with 79% exceeding expectations, and Q4 earnings growth is projected at 8.4%, reflecting strong corporate profitability that could support stock market performance.
- Market Focus on Economic Data: This week, the market will concentrate on upcoming economic data releases, including non-farm payrolls and CPI, which are expected to influence investor expectations regarding future interest rate policies and subsequently affect stock market volatility.
See More
Analysis of After-Hours Trading Performance of Multiple Companies
- Robinhood Revenue Decline: Robinhood's Q4 revenue of $1.28 billion fell short of the $1.34 billion expected by analysts, with transaction revenue also missing at $776 million, leading to a 7% drop in stock price, reflecting market concerns over its profitability.
- Lyft's Poor Performance: Lyft's stock dropped 15%, as its Q4 bookings of $5.07 billion met expectations, but its first-quarter adjusted EBITDA guidance of $120 million to $140 million fell short of the $139.8 million consensus, indicating pressure on profitability.
- Mattel's Disappointing Guidance: Mattel's stock plummeted 25%, with full-year adjusted earnings guidance ranging from $1.18 to $1.30 per share, significantly below the $1.77 expected by the market, and Q4 results also missed expectations, highlighting weakness in the toy market.
- Cloudflare's Strong Outlook: Cloudflare's stock surged 10% after projecting Q1 revenue between $620 million and $621 million, exceeding the $614 million consensus, and its Q4 results also surpassed analyst expectations, showcasing strong growth potential in the cloud networking market.
See More
CloudFlare Q4 Earnings Exceed Expectations
- Earnings Beat: CloudFlare reported a Q4 non-GAAP EPS of $0.28, beating estimates by $0.01, indicating a sustained improvement in profitability that strengthens its market position in cybersecurity.
- Significant Revenue Growth: The company achieved Q4 revenue of $614.5 million, a 33.6% year-over-year increase, surpassing market expectations by $23.14 million, reflecting strong demand for its products and services and driving overall business growth.
- Optimistic Future Outlook: For Q1 2026, total revenue is expected to be between $620.0 million and $621.0 million, exceeding the consensus of $614.19 million, showcasing the company's confidence in future growth, although non-GAAP EPS guidance is slightly below expectations.
- Robust Annual Projections: The full-year 2026 revenue is projected to be between $2.785 billion and $2.795 billion, above the consensus of $2.74 billion, indicating the company's strategic commitment to expanding market share and enhancing profitability.
See More
Cloudflare Q4 Results Exceed Expectations with Strong Revenue Growth
- Significant Revenue Growth: Cloudflare reported Q4 revenue of $614.5 million, representing a 34% year-over-year increase, exceeding market expectations and demonstrating the company's strong performance in the enterprise sector, thereby reinforcing its leadership in the cybersecurity space.
- Improved Profitability: The non-GAAP EPS of $0.28 surpassed expectations by $0.01, indicating positive progress in cost control and operational efficiency, which enhances investor confidence in the company's financial health.
- Positive Market Reaction: Following the earnings beat, Cloudflare's stock price rose, reflecting market optimism regarding its future growth potential, which may attract more institutional investors to the stock.
- Valuation Concerns Intensify: Despite the strong performance, there are ongoing concerns regarding Cloudflare's valuation, prompting investors to closely monitor its future profitability and competitive landscape to assess long-term investment value.
See More
Cloudflare Reports Q4 2025 Earnings Beat Expectations
- Strong Earnings Report: Cloudflare reported adjusted EPS of $0.28 for Q4 2025, beating the consensus estimate of $0.27, while GAAP EPS of -$0.03 matched expectations, indicating stable profitability.
- Significant Revenue Growth: The company achieved a 34% year-over-year revenue increase to $614.5 million, surpassing the $591.3 million estimate, reflecting robust performance and sustained customer demand in the cloud connectivity market.
- Optimistic Outlook: For Q1 2026, Cloudflare expects revenue between $620 million and $621 million, exceeding the $614 million consensus, while projecting adjusted EPS of $0.23, slightly below the $0.25 estimate, showcasing confidence in future growth.
- Record Contract Value: In Q4, Cloudflare closed its largest annual contract value deal ever, averaging $42.5 million per year, with total new ACV growing nearly 50%, highlighting the company's strong growth potential in the rapidly evolving AI market.
See More
Cloudflare Q4 Earnings Beat Expectations, Shares Surge Over 9%
- Earnings Beat: Cloudflare reported Q4 2025 revenue of $614.5 million, a 34% year-over-year increase, surpassing analyst expectations of $591.67 million, indicating strong market performance.
- AI-Driven Demand: CEO Matthew Prince highlighted that the rise of artificial intelligence and agents has driven demand for Cloudflare's services, creating a virtuous cycle that enhances the company's market position.
- Positive Outlook: The company provided Q1 revenue guidance of $620 million to $621 million, exceeding the market average expectation of $613.88 million, reflecting confidence in future growth.
- Stock Surge: Following the earnings report, Cloudflare's shares surged over 9% in after-hours trading, demonstrating investor optimism regarding the company's performance and future prospects.
See More
US Retail Sales Weakness Impacts Markets
- Retail Sales Stagnation: US retail sales for December were unchanged month-over-month, falling short of the +0.4% expectation, indicating weakness in consumer spending that could lead to a downward revision in Q4 GDP, thereby impacting overall economic growth forecasts.
- Employment Cost Index Decline: The Q4 employment cost index rose by 0.7% quarter-over-quarter, below the expected 0.8%, marking the smallest increase in 4.5 years, suggesting easing labor cost pressures that may influence Federal Reserve monetary policy decisions.
- Positive Earnings Outlook: More than half of S&P 500 companies have reported earnings, with 79% exceeding expectations, and Q4 earnings growth is projected at 8.4%, reflecting strong corporate profitability that could support stock market performance.
- Market Focus on Economic Data: This week, the market will concentrate on upcoming economic data releases, including non-farm payrolls and CPI, which are expected to influence investor expectations regarding future interest rate policies and subsequently affect stock market volatility.
See More
