Cloudflare posts 39% revenue growth in Q3 2026, crossing $3 billion annualized
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The gist
Cloudflare reported Q3 2026 revenue of $782 million, up 39% year over year, crossing $3 billion annualized.
Investors had pulled the stock back 20% in a month over valuation worries.
Background
Cloudflare, Inc. (NYSE: NET) is a San Francisco-based cloud security and performance company that markets itself as a connectivity cloud provider. It has increasingly positioned itself as infrastructure for AI developers through offerings such as Workers AI, Vectorize and GPU-powered inference services. Ahead of the report, shares had fallen out of favor with investors even though the stock was still up nearly 35% versus the start of the year, and analysts were watching for traction among large enterprise customers.
How it unfolded
- Nov 2, 2026A Seeking Alpha earnings preview titled "Great Growth, Terrible Valuation" argued Cloudflare is building intriguing internet-infrastructure platforms but is richly priced.
- Nov 3, 2026Cloudflare closed at $273.62 per share with a market capitalization of $97.43 billion, down 20.22% over the past month but up 19.74% over 52 weeks.
- Nov 4, 2026Consensus ahead of the Q3 report stood at $0.02 in EPS, which would represent 300% growth year over year; Barchart said Wall Street analysts were largely bullish heading into earnings.
- Nov 5, 2026Cloudflare reported Q3 2026 results for the quarter ended September 30: revenue of $782 million, up 39% year over year, crossing $3 billion in annualized revenue; current remaining performance obligations grew 37% year over year; GAAP loss from operations was $(67,926) thousand versus $(37,460) thousand a year earlier.
Key terms
- EPS
- The monetary value of earnings per outstanding share of common stock for a company over a defined period.
- GAAP
- The set of default accounting standards used by companies based in the United States.
Source: Wikipedia
Who’s saying what
- Official
- CEO Matthew Prince called it Cloudflare's best quarter ever, citing the fastest revenue growth in nearly four years alongside expanding profitability.
- Analysts
- A Seeking Alpha analyst framed the stock as great growth at a terrible valuation, while Barchart noted analysts were largely bullish and the derivatives market expected some near-term recovery.
- Bulls
- Polen 5Perspectives Large Growth Strategy highlighted Cloudflare as a leading contributor after strong Q2 results, accelerating growth, record customer additions and a raised outlook, and pointed to machine-driven traffic now being a majority of network traffic as a long-term opportunity.
Still unverified
Cloudflare's Q4 and full-year fiscal 2026 outlook figures are described in the release as forward-looking statements, and actual results may differ materially.