Cloudflare, Inc.: EPS $0.38 vs $0.3424 expected; revenue $783M vs $737M
Key Facts
Q3 FY2026 results
| Metric | Actual | Estimate | Surprise | Year ago |
|---|---|---|---|---|
| EPS (USD) | 0.3800 | 0.3424 | +11.0% | 0.2700 |
| Revenue (USD m) | 782.5000 | 737.1600 | +6.2% | 562.0300 |
Recent reports: actual vs estimate
| Reported | Period | EPS (USD) | Estimate | Surprise | Revenue (USD m) | Estimate | Surprise |
|---|---|---|---|---|---|---|---|
| Nov 5, 2026 | Q3 FY2026 | 0.38 | 0.3424 | +11.0% | 782.50 | 737.16 | +6.2% |
| Aug 6, 2026 | Q2 FY2026 | 0.29 | 0.2684 | +8.0% | 696.06 | 664.67 | +4.7% |
| May 7, 2026 | Q1 FY2026 | 0.25 | 0.2306 | +8.4% | 639.76 | 620.83 | +3.0% |
| Feb 10, 2026 | Q4 FY2025 | 0.28 | 0.2713 | +3.2% | 614.51 | 591.34 | +3.9% |
| Oct 30, 2025 | Q3 FY2025 | 0.27 | 0.2301 | +17.3% | 562.03 | 544.65 | +3.2% |
| Jul 31, 2025 | Q2 FY2025 | 0.21 | 0.1834 | +14.5% | 512.32 | 501.27 | +2.2% |
| May 8, 2025 | Q1 FY2025 | 0.16 | 0.1637 | −2.3% | 479.09 | 469.28 | +2.1% |
| Feb 6, 2025 | Q4 FY2024 | 0.19 | 0.1800 | +5.6% | 459.95 | 452.05 | +1.7% |
Source: Figures from the EL7 database. Estimates are the analyst consensus carried by our data vendor (FMP), not official figures.
Cloudflare, Inc. results: EPS $0.38 vs $0.3424 expected; revenue $783M vs $737M. The results cover the company's Q3 FY2026. EPS came in above analysts' estimate by 11.0%; revenue above the estimate by 6.2%.
Revenue was up 39.2% from $562 million a year earlier (Q3 FY2025). EPS was up 40.7% from $0.27 a year earlier. On its record, EPS topped analysts' estimates in 6 of 7 earlier comparable reports.
What the results mean
Cloudflare’s results reflect accelerating business growth, while management emphasized its platform for developing artificial intelligence applications and organizations’ continued reliance on its protection services as digital threats escalate. Its business combines application and network security with performance services, allowing an integrated platform to address related customer needs.
The adjusted operating margin improved while the gross margin declined and the reported operating loss widened. This makes service delivery efficiency and expense control central to assessing the quality of growth, while distinguishing adjusted profitability gains from continuing accounting losses. Growth in current remaining performance obligations also reflects an expanding base of contracted business yet to become revenue.
What to watch on the earnings call: The contribution of the artificial intelligence development platform and security services to demand, the conversion of contracted obligations into revenue, and the causes of gross margin pressure despite an improving adjusted operating margin. Expense details explaining the gap between adjusted profitability and accounting losses, alongside cash flow capacity to support infrastructure spending, also warrant attention.
For the full analysis of Cloudflare, Inc. stock — valuation, scores and financial statements — see the stock page linked with this story.
Latest Updates · 2
- Notable·
Update: Cloudflare recorded its fastest sales growth in nearly 4 years during Q3 FY2026. This acceleration was driven by rising demand for the company's automated AI-powered protection services.
- Notable·
Update: Cloudflare raised its full-year revenue guidance to approximately $2.96 billion on November 5, 2026. This new forecast exceeds the company's previous guidance range of $2.86 billion to $2.87 billion.