TLDR
- Cloudflare (NET) stock rose 15% in Friday premarket trading after its Q3 report
- Revenue hit $782.5 million, up 39% from a year ago
- Adjusted EPS came in at 38 cents versus the 34 cents analysts expected
- Q4 revenue guidance of $845 million to $846 million topped the $796 million Wall Street forecast
- Goldman Sachs kept its Buy rating and $420 price target
Cloudflare (NET) stock was set for a big bounce on Friday. It rose 15% in premarket trading after the company posted third-quarter results that beat Wall Street estimates.
The rally follows a rough Thursday. The stock fell about 8% that day as a broad selloff hit tech names.
The Nasdaq Composite dropped 5.5%, its worst session since April 2025. The trigger was an AI scare tied to Democratic efforts to slow data-center development.
CLOUDFLARE $NET Q3’26 EARNINGS HIGHLIGHTS
🔹 Revenue: $782.5M (Est. $739M) 🟢; +39% YoY
🔹 Adj. EPS: $0.38 (Est. $0.34) 🟢; +41% YoY
🔹 GAAP EPS: $0.10FY26 Guide:
🔹 Revenue: $2.96B-$2.96B (Est. $2.87B) 🟢
🔹 Adj. EPS: $1.35 (Est. $1.28) 🟢
🔹 Non-GAAP Operating Income:… pic.twitter.com/T0xwP2EnXt— Wall St Engine (@wallstengine) November 5, 2026
Cloudflare reported adjusted earnings of 38 cents a share. Analysts polled by FactSet had expected 34 cents.
Revenue came in at $782.5 million, above the $737.2 million forecast. That marked a 39% jump from a year earlier.
The growth rate is the fastest the company has seen in nearly four years. It also picked up about 3.5 percentage points from the prior quarter.
A Record Quarter on Margins
Operating margin hit a record 17.5%. Management called it the best quarter since Cloudflare went public.
Customers are also spending their pool-of-funds commitments faster. That is leading to earlier renewals and bigger follow-on deals.
The company booked its first Act IV revenue in the quarter. Cloudflare believes Act IV could grow into its largest business over a 10-year horizon.
William Blair analyst Jonathan Ho rates the stock Outperform. He said the company delivered “another stellar quarter” with demand across the board and strong sales productivity.
Guidance and Analyst Reaction
For the fourth quarter, Cloudflare expects revenue of $845 million to $846 million. Before the report, Wall Street was looking for $796 million.
That guide implies roughly 37.5% year-over-year growth. Goldman Sachs said it sits 6% above Street estimates, with earnings per share projected 13% above consensus.
Goldman reiterated its Buy rating and $420 price target. The firm noted that Q3 revenue beat estimates by 6% and EPS beat by 11%.
Agentic activity is also climbing on the platform. Developers building agents on Cloudflare Workers rose to 10 million in Q3 from 7 million in Q2.
The company says it offers security tools for new attacks tied to the agentic web. Cloudflare’s market value stood at $87 billion before the jump.
The stock had slid 13% over the past week heading into the report. InvestingPro analysis still shows it trading above fair value, though analysts expect a profit this year.
