Cloudflare Q3 2026 earnings review
Quarter ended September 30, 2026
For information only, not investment advice. No rating or price target.
Cloudflare Q3 2026 earnings review
Revenue rose 39.2% and beat consensus, and FY guidance rose.
Cloudflare · Q3 2026 · Published Nov 6, 2026 · By DeepCell AI · Sources
1 · Cloudflare (NET) Q3 2026 earnings review
Revenue rose 39.2% and beat consensus, and FY guidance rose
- 1.Revenue rose 39.2% to $782.5M, above the Investing.com consensus of $736.8M
- 2.Non-GAAP diluted EPS of $0.38 beat the Investing.com consensus of $0.34
- 3.Non-GAAP operating margin rose 223 bps to 17.5%; Current RPO grew 37%
- 4.FY revenue guidance midpoint rose to $2,964M, and non-GAAP EPS guidance is $1.35
- 5.After hours on Nov 5: $274.32, +12.2% vs. close $244.51 (not a close)
Note: RPO is remaining performance obligations. Non-GAAP figures follow the company reconciliation. After-hours price is not a close.Source: Cloudflare Form 8-K, Nov 5, 2026; Investing.com, Nov 5, 2026; Yahoo Finance and CNBC prices, Nov 5, 2026; analysis of company data
2 · Executive summary
Q3 revenue beat the Investing.com consensus by 6.2%, and non-GAAP EPS beat by 11.8%
Q3 2026 results vs. Investing.com consensus
| Metric | Actual | Consensus | Variance | Result |
|---|---|---|---|---|
| Revenue | $782.5M | $736.8M | +$45.7M / +6.2% | Beat |
| Non-GAAP diluted EPS | $0.38 | $0.34 | +$0.04 / +11.8% | Beat |
Share price, Nov 4 close, Nov 5 close and Nov 5 after-hours (Yahoo Finance; CNBC)
| Measure | Nov 4 close | Nov 5 close | Nov 5 after-hours | AH vs close |
|---|---|---|---|---|
| Cloudflare (NYSE) | $266.58 | $244.51 | $274.32 | +12.2% |
Note: Investing.com consensus as published Nov 5. After-hours is CNBC extended last at 6:40 PM EST; not a close.Source: Cloudflare Form 8-K, Nov 5, 2026; Investing.com, Nov 5, 2026; Yahoo Finance and CNBC prices, Nov 5, 2026; analysis of company data
3 · Q3 results vs. consensus
Q4 revenue guidance sits 5.9% above the Investing.com consensus, and FY EPS guidance is 7.1% above
Guidance midpoint vs. Investing.com consensus
| Metric | Guidance | Consensus | Variance | vs. Street |
|---|---|---|---|---|
| Q4 2026 revenue | $845.5M | $798.2M | +$47.3M / +5.9% | Above |
| Q4 non-GAAP diluted EPS | $0.43 | $0.38 | +$0.05 / +13.2% | Above |
| FY 2026 revenue | $2,964M | $2,870M | +$93.5M / +3.3% | Above |
| FY non-GAAP diluted EPS | $1.35 | $1.26 | +$0.09 / +7.1% | Above |
Q4 2026 guidance ranges, Nov 5
| Metric | Low | High | Midpoint vs. Q3 |
|---|---|---|---|
| Revenue | $845.0M | $846.0M | +8.0% |
| Non-GAAP operating income | $156.0M | $157.0M | +14.2% |
| Non-GAAP diluted EPS | $0.43 | $0.43 | +13.2% |
Note: Variance is guidance midpoint less consensus. Q4 EPS is a point guide of $0.43. Midpoint vs. Q3 compares with Q3 actuals.Source: Cloudflare Form 8-K, Nov 5, 2026; Investing.com, Nov 5, 2026; analysis of company data
4 · Guidance vs. consensus
Revenue rose 39.2% to $782.5M, while GAAP operating loss widened
- Non-GAAP operating income roseNon-GAAP operating income rose 59.5% to $137.1M.
- Non-GAAP EPS roseNon-GAAP diluted EPS rose 40.7% to $0.38.
- Free cash flow roseFCF rose 9.5% to $82.1M, or 10.5% of revenue.
Key figures in $M and YoY % for Q3 2026 vs. Q3 2025
| $M unless noted | Q3 2025 | Q3 2026 | YoY |
|---|---|---|---|
| Revenue | $562.0M | $782.5M | 39.2% |
| Gross profit | $415.7M | $557.2M | 34.0% |
| Operating income (loss) | -$37.5M | -$67.9M | n.m. |
| Net income (loss) | -$1.3M | -$34.1M | n.m. |
| Diluted EPS | $0.00 | -$0.10 | n.m. |
Note: Figures are as reported (GAAP). n.m. means not meaningful for loss-to-loss comparisons.Source: Cloudflare Form 8-K, Nov 5, 2026; analysis of company data
5 · Q3 key financials
Revenue rose 39.2% and Current RPO grew 37%
Revenue and Current RPO
Q3 2025 vs. Q3 2026
| Metric | Q3 2025 | Q3 2026 | YoY |
|---|---|---|---|
| Revenue ($M) | $562.0M | $782.5M | 39.2% |
| Non-GAAP operating income ($M) | $85.9M | $137.1M | 59.5% |
| Current RPO YoY | — | — | 37% |
CEO called Q3 the best quarter ever“The third quarter was Cloudflare's best quarter ever. We crossed $3 billion in annualized revenue with revenue of $782 million, up 39% year over year.” Matthew Prince, CEO
Note: RPO is remaining performance obligations. Cloudflare reports one operating segment. Absolute Current RPO was not stated in the release; only the YoY growth rate is shown.Source: Cloudflare Form 8-K, Nov 5, 2026; analysis of company data
6 · Revenue and backlog
Q4 revenue guidance midpoint of $846M is +8.0% above Q3 revenue
Quarterly revenue and Q4 guidance midpoint
$M
Q4 guide midpoint is $+$63.0M above Q3 revenue
Note: Q4 2026 guide is the midpoint of the $845M to $846M range.Source: Cloudflare Form 8-K, Nov 5, 2026; analysis of company data
7 · Revenue trend and Q4 guide
Non-GAAP S&M was 34.5% of revenue, and R&D was 13.0%
Note: SBC is stock-based compensation. Ratios are non-GAAP expense divided by revenue. Non-GAAP excludes SBC and related payroll taxes, amortization, restructuring, legal reserves and other items.Source: Cloudflare Form 8-K, Nov 5, 2026; analysis of company data
8 · Non-GAAP expense ratios
GAAP net loss widened to -$34.1M as opex rose faster than gross profit
Net income bridge
$M, Q3 2025 to Q3 2026
Operating expenses rose -$172.0M YoY
Note: Steps are YoY changes. Higher opex and taxes are reductions. Non-operating income is omitted for scale.Source: Cloudflare Form 8-K, Nov 5, 2026; analysis of company data
9 · Net income bridge
Non-GAAP operating margin rose 223 bps to 17.5%, while gross margin fell to 71.2%
Note: SBC is stock-based compensation. Margins are profit divided by revenue. Non-GAAP excludes SBC and related payroll taxes, amortization, restructuring, legal reserves and other items.Source: Cloudflare Form 8-K, Nov 5, 2026; analysis of company data
10 · Margin analysis
Free cash flow rose 9.5% to $82.1M, but FCF margin fell to 10.5%
Note: FCF is operating cash flow less purchases of PP&E and capitalized internal-use software, as the company defines it.Source: Cloudflare Form 8-K, Nov 5, 2026; analysis of company data
11 · Free cash flow
Q3 revenue beat company guidance by 6.2%, and non-GAAP EPS beat by 11.8%
Note: Guidance is from the Q2 2026 release of Aug 6, 2026; revenue and operating income use range midpoints.Source: Cloudflare Form 8-K, Nov 5, 2026; Cloudflare Form 8-K, Aug 6, 2026 (prior guidance); analysis of company data
12 · Q3 vs. company guidance
Cash and securities rose to $5,128.7M, against $4,442M of convertible notes
Cash, securities and convertible notes
$M, Dec 31, 2025 vs. Sep 30, 2026
| $M | Dec 31, 2025 | Sep 30, 2026 |
|---|---|---|
| Cash and cash equivalents | $943.5M | $1,969.5M |
| Available-for-sale securities | $3,157.7M | $3,159.2M |
| Cash and securities | $4,101.3M | $5,128.7M |
| Convertible senior notes, net | $3,265.4M | $4,441.9M |
Cash and securities less notes was $686.8M, after issuing $2.5B of convertibles in the quarter
Note: Convertible notes are current plus noncurrent carrying amounts. The company issued $2.5B of convertibles and repaid about $1.3B in the quarter.Source: Cloudflare Form 8-K, Nov 5, 2026; analysis of company data
13 · Balance sheet and net cash
Q4 guidance implies non-GAAP operating margin of 18.5%, near Q3 at 17.5%
Indicator
What to watch
Implication
Q3 reading
Note: RPO is remaining performance obligations; SBC is stock-based compensation. These are analytical watch points, not company targets. Absolute Current RPO was not in the release.Source: Cloudflare Form 8-K, Nov 5, 2026; analysis of company data
14 · Key risks to guidance
Appendix: revenue and backlog detail
| Claim | Evidence | Calculation |
|---|---|---|
| Revenue accelerated | Revenue 39.2% YoY to $782.5M | Income statement |
| Current RPO grew | Current RPO grew 37% YoY | Release bullet; absolute not stated |
| Deferred revenue rose | Total deferred revenue $916.2M, up $190.9M | Current plus noncurrent |
| Q4 revenue guide rose | Midpoint $845.5M, +8.0% vs Q3 | Range midpoint |
RPO is remaining performance obligations. Source: Cloudflare Form 8-K, Nov 5, 2026; analysis of company data
15 · Appendix: Revenue detail
Appendix: profit and margin detail
| Claim | Evidence | Calculation |
|---|---|---|
| R&D rose slower than revenue | R&D $168.2M, up 39.1% YoY | Income statement |
| Non-GAAP gross margin fell | Non-GAAP gross margin 75.3% to 72.4% | Non-GAAP gross profit over revenue |
| Non-GAAP net income rose | Non-GAAP net income $143.7M, up 40.0% | Company reconciliation |
| Restructuring charges | Restructuring and other charges $11.0M in Q3 | Income statement |
Source: Cloudflare Form 8-K, Nov 5, 2026; analysis of company data
16 · Appendix: Profit and margins
Appendix: guidance and cash detail
| Claim | Evidence | Calculation |
|---|---|---|
| FY revenue guidance rose | Midpoint $2,964M, up $96.5M from Aug 6 | Range midpoints |
| FY EPS guidance rose | Point guide $1.35, up $0.10 from Aug 6 midpoint | Point vs prior midpoint |
| Operating cash flow rose | Q3 operating cash flow $215.4M vs. $167.1M | Cash flow statement |
| Capex rose with growth | PP&E purchases $121.8M, or 17.0% of revenue with software | PP&E plus capitalized software |
Source: Cloudflare Form 8-K, Nov 5, 2026; Cloudflare Form 8-K, Aug 6, 2026 (prior guidance); analysis of company data
17 · Appendix: Guidance and cash
Appendix: convertible notes and liquidity
| Claim | Evidence | Calculation |
|---|---|---|
| Convertible notes rose | Total convertibles $4,441.9M at Sep 30 | Balance sheet |
| New notes issued | $2.5B gross proceeds from convertible notes in the quarter | Cash flow statement |
| Prior notes repaid | About $1.29B of convertibles repaid in the quarter | Cash flow statement |
| Cash and securities | $5,128.7M at Sep 30 | Cash plus available-for-sale securities |
Source: Cloudflare Form 8-K, Nov 5, 2026; analysis of company data
18 · Appendix: Convertible notes
Appendix: operating expense and non-GAAP detail
GAAP operating expenses, $M and YoY %
| $M unless noted | Q3 2025 | Q3 2026 | YoY |
|---|---|---|---|
| Sales and marketing | $236.3M | $338.0M | 43.0% |
| Research and development | $121.0M | $168.2M | 39.1% |
| General and administrative | $95.9M | $108.0M | 12.6% |
| Restructuring and other | $0.0M | $11.0M | n.m. |
| Total operating expenses | $453.2M | $625.2M | 38.0% |
Non-GAAP results, $M and YoY %
| $M unless noted | Q3 2025 | Q3 2026 | YoY |
|---|---|---|---|
| Non-GAAP operating income | $85.9M | $137.1M | 59.5% |
| Non-GAAP net income | $102.6M | $143.7M | 40.0% |
| Stock-based compensation | $119.7M | $174.1M | 45.5% |
| Non-GAAP diluted EPS ($) | $0.27 | $0.38 | 40.7% |
Note: Non-GAAP excludes SBC and related payroll taxes, intangible amortization, restructuring, legal reserves, lease impairments, debt issuance amortization and tax effects.Source: Cloudflare Form 8-K, Nov 5, 2026; analysis of company data
19 · Appendix: Opex and non-GAAP
Appendix: sources
- Filing: Cloudflare Form 8-K, Nov 5, 2026 — https://www.sec.gov/Archives/edgar/data/1477333/000147733326000060/0001477333-26-000060-index.htm
- Earnings release, Q3 2026 (Ex. 99.1) — https://www.sec.gov/Archives/edgar/data/1477333/000147733326000060/q326exhibit991.htm
- Company IR mirror — https://www.cloudflare.com/press/press-releases/2026/cloudflare-announces-third-quarter-2026-financial-results/
- Prior guidance: Q2 2026 release (Ex. 99.1), Aug 6, 2026 — https://www.sec.gov/Archives/edgar/data/1477333/000147733326000053/q226exhibit991.htm
- Consensus: Investing.com, Nov 5, 2026 — https://www.investing.com/news/earnings/cloudflare-earnings-beat-by-004-revenue-topped-estimates-5005760; cross-check: MarketBeat ($737.16M, $0.3424)
- Share price: Yahoo Finance NET historical prices, Nov 4 and Nov 5, 2026 closes — https://finance.yahoo.com/quote/NET/history/
- After-hours (not a close): CNBC NET quote, Nov 5, 2026, 6:40 PM EST — https://www.cnbc.com/quotes/NET
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20 · Sources
Important disclosures and disclaimer
For information only. This presentation is provided for information only. It is not investment, legal, tax or accounting advice, and it is not an offer, or a solicitation of an offer, to buy or sell any security.
No recommendation. It carries no rating, price target or buy, sell or hold view, and it was prepared without regard to any reader's investment objectives, financial situation or needs.
Sources and accuracy. Company figures come from Cloudflare's Form 8-K of November 5, 2026 (Exhibit 99.1) and, for prior guidance, its Form 8-K of August 6, 2026. Consensus estimates (Investing.com) and share prices (Yahoo Finance; CNBC after-hours) are third-party data, credited on the sources page. Absolute Current RPO was not stated in the release. We have not independently verified third-party data and make no warranty that any information here is accurate, complete or timely.
Forward-looking statements. Company guidance, consensus estimates and the watch items in this deck are forward-looking. They rest on assumptions that may prove wrong, and actual results may differ materially.
Past performance. Past results, including those for Q3 2026, are not a reliable indicator of future results.
Non-GAAP measures. Non-GAAP gross profit, operating income, net income, diluted EPS and free cash flow follow Cloudflare's own definitions. They supplement, and do not replace, GAAP results, and they may not be comparable with other companies' measures. The earnings release reconciles them to GAAP.
No liability. No liability is accepted for any direct or indirect loss arising from the use of this presentation or its contents.
No affiliation. This presentation is not affiliated with, reviewed or endorsed by Cloudflare, Inc. and does not represent its views. Company and brand names belong to their owners.
How it was made. The deck was built with DeepCell, with figures linked to a model in the file. Readers should check the figures against the original filings and consult a qualified professional adviser before making any investment decision.
Date of analysis. The analysis reflects information available as of November 5, 2026, US Eastern time, with the Nov 5 regular-session close and Nov 5 after-hours quote. It will not be updated for later events, and views may change without notice.
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21 · Disclosures
Sources
- Cloudflare Q3 2026 earnings release (Form 8-K Ex. 99.1), Nov 5, 2026 — https://www.sec.gov/Archives/edgar/data/1477333/000147733326000060/q326exhibit991.htm Filing
- Cloudflare Q2 2026 earnings release (Form 8-K Ex. 99.1), Aug 6, 2026 — https://www.sec.gov/Archives/edgar/data/1477333/000147733326000053/q226exhibit991.htm Filing
- Investing.com, Cloudflare earnings beat, Nov 5, 2026 — https://www.investing.com/news/earnings/cloudflare-earnings-beat-by-004-revenue-topped-estimates-5005760 Filing
- Yahoo Finance NET historical prices, Nov 4 and Nov 5, 2026 closes; CNBC NET quote after-hours — https://finance.yahoo.com/quote/NET/history/; https://www.cnbc.com/quotes/NET Filing
Not investment advice; no rating or price target.
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