Cloudflare Reports Strong Q4 2025 Earnings with 34% Revenue Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy NET?
Source: seekingalpha
- Significant Revenue Growth: Cloudflare reported $614.5 million in revenue for Q4 2025, representing a 34% year-over-year increase, demonstrating the company's strong performance in a rapidly growing market and further solidifying its market position.
- Expanded Customer Base: As of Q4, Cloudflare has 4,298 customers paying over $100,000 annually, a 23% increase year-over-year, indicating the company's success in attracting high-value clients and enhancing long-term revenue stability.
- Optimistic Future Outlook: CFO Seifert provided Q1 2026 revenue guidance of $620 million to $621 million, with full-year guidance of $2.785 billion to $2.795 billion, reflecting a year-over-year increase of 28% to 29%, showcasing the company's confidence in future growth.
- Strong Cash Flow and Profitability: Cloudflare achieved a net income of $106.8 million in Q4, with diluted earnings per share at $0.28 and free cash flow of $99.4 million, representing 16% of revenue, highlighting the company's excellence in financial management and operational efficiency.
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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: 173.750
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.
Cloudflare Reports Strong Q4 2025 Earnings with 34% Revenue Growth
- Significant Revenue Growth: Cloudflare reported $614.5 million in revenue for Q4 2025, representing a 34% year-over-year increase, demonstrating the company's strong performance in a rapidly growing market and further solidifying its market position.
- Expanded Customer Base: As of Q4, Cloudflare has 4,298 customers paying over $100,000 annually, a 23% increase year-over-year, indicating the company's success in attracting high-value clients and enhancing long-term revenue stability.
- Optimistic Future Outlook: CFO Seifert provided Q1 2026 revenue guidance of $620 million to $621 million, with full-year guidance of $2.785 billion to $2.795 billion, reflecting a year-over-year increase of 28% to 29%, showcasing the company's confidence in future growth.
- Strong Cash Flow and Profitability: Cloudflare achieved a net income of $106.8 million in Q4, with diluted earnings per share at $0.28 and free cash flow of $99.4 million, representing 16% of revenue, highlighting the company's excellence in financial management and operational efficiency.
See More
Cloudflare (NET) Q4 2025 Earnings Call Transcript
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 Reports Strong Q4 2025 Earnings with 34% Revenue Growth
- Significant Revenue Growth: Cloudflare reported $614.5 million in revenue for Q4 2025, representing a 34% year-over-year increase, demonstrating the company's strong performance in a rapidly growing market and further solidifying its market position.
- Expanded Customer Base: As of Q4, Cloudflare has 4,298 customers paying over $100,000 annually, a 23% increase year-over-year, indicating the company's success in attracting high-value clients and enhancing long-term revenue stability.
- Optimistic Future Outlook: CFO Seifert provided Q1 2026 revenue guidance of $620 million to $621 million, with full-year guidance of $2.785 billion to $2.795 billion, reflecting a year-over-year increase of 28% to 29%, showcasing the company's confidence in future growth.
- Strong Cash Flow and Profitability: Cloudflare achieved a net income of $106.8 million in Q4, with diluted earnings per share at $0.28 and free cash flow of $99.4 million, representing 16% of revenue, highlighting the company's excellence in financial management and operational efficiency.
See More
Cloudflare (NET) Q4 2025 Earnings Call Transcript
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
