Cloudflare Q4 Earnings Preview: Strong Growth Expected
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy NET?
Source: seekingalpha
- Earnings Expectations: Cloudflare is expected to report Q4 earnings per share of $0.27, reflecting a 42% year-over-year increase, with projected revenue of $591.36 million, indicating a 29% growth, showcasing strong performance in the cloud infrastructure sector.
- Strategic Expansion: During the quarter, the company intensified its strategic focus on developer and AI capabilities, planning to acquire the AI platform Replicate, aiming to enhance its market competitiveness and attract more investor interest.
- Analyst Ratings: While Barclays has provided bullish coverage on Cloudflare, analysts have expressed caution regarding its valuation, noting that market expectations are high and its earnings multiple is three times that of some competitors, which may affect investor confidence.
- Operational Challenges: The quarter was marked by operational disruptions that temporarily affected access to major internet platforms and applications, raising concerns about potential reputational risks despite service restoration efforts.
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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: 173.210
Low
131.00
Averages
253.24
High
318.00
Current: 173.210
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.
Cloudflare Q4 Earnings Preview: Strong Growth Expected
- Earnings Expectations: Cloudflare is expected to report Q4 earnings per share of $0.27, reflecting a 42% year-over-year increase, with projected revenue of $591.36 million, indicating a 29% growth, showcasing strong performance in the cloud infrastructure sector.
- Strategic Expansion: During the quarter, the company intensified its strategic focus on developer and AI capabilities, planning to acquire the AI platform Replicate, aiming to enhance its market competitiveness and attract more investor interest.
- Analyst Ratings: While Barclays has provided bullish coverage on Cloudflare, analysts have expressed caution regarding its valuation, noting that market expectations are high and its earnings multiple is three times that of some competitors, which may affect investor confidence.
- Operational Challenges: The quarter was marked by operational disruptions that temporarily affected access to major internet platforms and applications, raising concerns about potential reputational risks despite service restoration efforts.
See More
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Cloudflare Q4 Earnings Preview: Strong Growth Expected
- Earnings Expectations: Cloudflare is expected to report Q4 earnings per share of $0.27, reflecting a 42% year-over-year increase, with projected revenue of $591.36 million, indicating a 29% growth, showcasing strong performance in the cloud infrastructure sector.
- Strategic Expansion: During the quarter, the company intensified its strategic focus on developer and AI capabilities, planning to acquire the AI platform Replicate, aiming to enhance its market competitiveness and attract more investor interest.
- Analyst Ratings: While Barclays has provided bullish coverage on Cloudflare, analysts have expressed caution regarding its valuation, noting that market expectations are high and its earnings multiple is three times that of some competitors, which may affect investor confidence.
- Operational Challenges: The quarter was marked by operational disruptions that temporarily affected access to major internet platforms and applications, raising concerns about potential reputational risks despite service restoration efforts.
See More
High-Volume Earnings Reports This Week from Tech and Consumer Sectors
- Earnings Schedule: This week features a high volume of earnings reports from technology, consumer discretionary, and energy sectors, with RIVN stock showing notable movement ahead of its earnings release, indicating investor sentiment.
- Monday.com and Pagaya Reports: On Monday, work management SaaS provider Monday.com and fintech company Pagaya released their earnings before the market opened, with expectations that their results will reflect broader industry trends.
- Coinbase Earnings Expectations: On Thursday, Coinbase is expected to report earnings of 68 cents per share and quarterly revenue of $1.86 billion, despite facing a projected 33% drop in transaction revenue, raising investor interest in its growing stablecoin and subscription services.
- Nebius Group Forecast: Also on Thursday, Nebius Group is projected to report a loss of $1.14 per share and revenue of $246.05 million, with analysts expressing caution, reflecting concerns over cloud service demand in the current market environment.
See More
Seattle Seahawks Win Super Bowl, Dow Surpasses 50,000
- Market Surge: The Dow Jones Industrial Average surged over 1,200 points on Friday, surpassing the 50,000 mark for the first time, closing the week up 2.5%, indicating a strong recovery in market sentiment despite earlier tech stock sell-offs.
- Bitcoin Rebound: Bitcoin rebounded above $70,000 on Friday, recovering from a sharp drop that nearly brought it below $60,000, reflecting a renewed confidence in the cryptocurrency market, although it remains over 50% off its all-time high.
- Super Bowl Advertising Boom: During the Super Bowl, NBC's average price for a 30-second ad reached $8 million, with some slots exceeding $10 million, highlighting strong demand in the advertising market, particularly from AI companies.
- Legal Battle Between Hims and Novo: Novo Nordisk is suing Hims & Hers over alleged copycat versions of its Wegovy obesity drug, leading Hims to announce the withdrawal of its product, which caused its shares to drop over 20% before the market opened.
See More
Seattle Seahawks Win Super Bowl with 29-13 Victory
- Market Surge: The Dow Jones Industrial Average soared over 1,200 points on Friday, surpassing the 50,000 mark for the first time, closing the week up 2.5%, indicating strong investor confidence despite a slight dip in futures trading this morning.
- Super Bowl Advertising Boom: NBC's 30-second ad spots averaged $8 million, with some exceeding $10 million, showcasing fierce competition in the advertising market as AI companies heavily invested in the event, highlighting the importance of brand visibility.
- Legal Action Intensifies: Novo Nordisk is suing Hims & Hers over its copycat weight-loss pills, leading Hims to announce the withdrawal of its product, resulting in a pre-market stock drop of over 20%, reflecting market sensitivity to legal risks.
- Meta Faces Major Trials: Meta is set to face two significant lawsuits in New Mexico and Los Angeles regarding the protection of child users and the mental health impacts on young users, which could have profound implications for its business and the social media industry.
See More
Key Earnings Reports and Economic Outlook This Week
- DuPont Earnings Expectations: DuPont is expected to report earnings of $0.43 per share and revenue of $1.69 billion for Q4 2025, with analysts noting ongoing pressure in short-cycle businesses, while slight improvements in the automotive sector may influence investor sentiment.
- Cisco's AI Focus: Cisco anticipates earnings of $1.02 per share and revenue of $15.1 billion for Q2 FY2026, with CEO highlighting a major multi-year campus networking refresh, making AI infrastructure demand a critical growth driver.
- Importance of Employment Report: The January employment report is expected to show an addition of 80,000 nonfarm payrolls and an unchanged unemployment rate of 4.4%, directly impacting private consumption and U.S. GDP, making it crucial for investors to monitor.
- Consumer Price Index Insights: The January CPI is projected to increase by 2.5% year-over-year, with core CPI rising by 2.6%, providing essential inflation details despite not being the Fed's preferred measure, particularly regarding persistent shelter cost inflation.
See More
Key Focus Areas This Week: Jobs, Consumer Prices, Coca-Cola, CVS, Ford, McDonald's, and More
- Market Performance: The Dow Jones Industrial Average rose by 2.5% and closed above 50,000 for the first time.
- Nasdaq Struggles: In contrast, the Nasdaq Composite ended the week down 1.8%, despite a strong rally on Friday.
See More
