SAN FRANCISCO, Feb. 10, 2026, 2:07 p.m. PST
- Q4 revenue jumped 33.6% to $614.5 million, with adjusted EPS hitting 28 cents. 1
- FY2026 revenue forecast stands at $2.79-$2.8 billion, exceeding the consensus estimate of $2.74 billion. 2
Cloudflare topped quarterly estimates and raised its revenue forecast for 2026, pushing its shares up 6% in after-hours trading Tuesday. The San Francisco-based cloud connectivity and cybersecurity company reported an adjusted, non-GAAP profit of 28 cents per share on $614.5 million in fourth-quarter revenue. It now expects full-year revenue between $2.785 billion and $2.795 billion, beating analyst predictions. 3
The update dropped as investors dig into earnings, hunting for clues on software spending. AI boosts some stocks but complicates valuations for others. Mark Luschini, chief investment strategist at Janney Montgomery Scott, warned investors “don’t want to get too far above their risk budget” ahead of a postponed U.S. payrolls report. 4
Analysts had predicted adjusted earnings at 27 cents per share and revenue around $591.36 million before the earnings came out, according to a preview from Seeking Alpha. The company surpassed those estimates, though the main question now is if their guidance can sustain growth close to what we’ve seen recently. 5
Cloudflare announced it landed its largest annual contract value deal this quarter, with an average of $42.5 million per year; annual contract value (ACV) refers to the contract’s yearly run-rate. New ACV surged nearly 50% compared to last year, marking its fastest growth since 2021. Meanwhile, remaining performance obligations (RPO)—the contracted work not yet booked as revenue—jumped 48% year over year. CEO Matthew Prince commented, “The shift toward AI and agents represents a fundamental re-platforming of the Internet.” 6
Cloudflare reported a $49.2 million operating loss and a $12.1 million net loss for the quarter ending Dec. 31, 2025, according to GAAP. Gross margin dropped to 73.6%. The company’s free cash flow hit $99.4 million, making up 16.2% of revenue, while cash and investments totaled roughly $4.1 billion, it said. 7
Cloudflare projected full-year adjusted earnings between $1.11 and $1.12 per share, falling short of analysts’ $1.18 estimate, despite its revenue forecast beating expectations, Investing.com reported. The stock had closed at $179.91 ahead of the announcement. 8
The stock has dropped roughly 7% in 2026 after surging 83% last year, Investors.com reported. That sharp climb makes Cloudflare especially vulnerable to any slip in guidance, with investors fixated on the buzz around an “agentic web” driven by AI technology. 9
Cloudflare goes head-to-head with Akamai and Fastly in edge network delivery and security, drawing investor attention for potential market share changes. Akamai has gained roughly 9% year-to-date, while Fastly has dropped around 11%, according to a 24/7 Wall St. note.
Cloudflare remains unprofitable under GAAP, projecting per-share earnings of 23 cents this quarter and revenue between $620 million and $621 million, per an earnings snapshot from MarketScreener. Any signs of weaker profits, delays in deals, or fresh concerns over software budgets could swiftly erase gains in after-hours trading. 10
Options traders expected a roughly 12.2% swing following the earnings, with call volume outpacing puts, according to TipRanks referencing TheFly. Now, investors will focus on management’s insights about AI-driven demand, major contracts, and profit margins. 11
