Cloudflare Shares Jump After Q3 Revenue Rises 39% to $782.5 Million and Outlook Tops Estimates

Cloudflare Inc. shares jumped after the company reported third-quarter results that beat Wall Street estimates and raised its outlook, extending a rebound in selected software names on Friday. Investing.com said the stock surged 12.6% in premarket trading. StockAnalysis, citing data from S&P Global Market Intelligence, showed Cloudflare closed at $268.75 on Friday, Nov. 6, up $24.24, or 9.91%, from Thursday’s close of $244.51, after trading as high as $286.97 and as low as $265.00 on volume of about 9.43 million shares.

In a Nov. 5 press release, Cloudflare said revenue for the quarter ended Sept. 30 was $782.5 million, up 39% from a year earlier. Co-founder and Chief Executive Matthew Prince called it “Cloudflare’s best quarter ever” and said the company “crossed $3 billion in annualized revenue with revenue of $782 million, up 39% year over year,” adding that it delivered “our fastest revenue growth in nearly four years, while expanding profitability.”

Earnings beat and cash generation

On a non-GAAP basis, net income was $143.7 million, or $0.38 per diluted share, compared with $102.6 million, or $0.27, a year earlier, the company said. GAAP net loss was $34.1 million, or $0.10 per basic and diluted share, compared with a loss of $1.3 million, or $0.00 a share, in the third quarter of 2025. GAAP loss from operations widened to $67.9 million, or 8.7% of revenue, from $37.5 million, or 6.7% of revenue, a year earlier. Non-GAAP income from operations rose to $137.1 million, or 17.5% of revenue, from $85.9 million, or 15.3%.

Investing.com said the $782.5 million revenue figure topped a consensus estimate of $736.8 million and that adjusted earnings of $0.38 a share beat projections of $0.34. The same report said the GAAP operating loss reflected, in part, $174.1 million in stock-based compensation and $11.0 million in restructuring charges. Cloudflare said current remaining performance obligations grew 37% from a year earlier.

GAAP gross profit was $557.2 million, or a 71.2% gross margin, compared with $415.7 million, or 74.0%, a year earlier. Non-GAAP gross profit was $566.6 million, or 72.4%, compared with $423.1 million, or 75.3%. Net cash from operating activities rose to $215.4 million from $167.1 million, and free cash flow was $82.1 million, or 10% of revenue, compared with $75.0 million, or 13% of revenue, in the year-earlier quarter. Cash, cash equivalents and available-for-sale securities totaled $5,128.7 million as of Sept. 30, 2026.

Outlook above estimates

For the fourth quarter, Cloudflare said it expects revenue of $845.0 million to $846.0 million, non-GAAP income from operations of $156.0 million to $157.0 million, and non-GAAP net income of $0.43 per share, based on about 379 million weighted average shares. For the full year 2026, it expects revenue of $2,963.0 million to $2,964.0 million, non-GAAP operating income of $462.0 million to $463.0 million, and non-GAAP earnings of $1.35 a share on about 376 million shares.

Investing.com said those targets were well above Wall Street forecasts, including about $798.2 million for fourth-quarter revenue, $0.38 for fourth-quarter adjusted earnings per share, $2.87 billion for full-year revenue and $1.26 for full-year adjusted earnings per share. A separate Investing.com premarket report put the third-quarter revenue estimate at about $736.8 million, in line with the after-hours account.

Prince said Cloudflare had “built the development platform for the AI-powered Internet” and that organizations continued to rely on the company for protection as digital threats escalate. The results cover the period ended Sept. 30 and were released after Thursday’s close. Friday’s gain recovered only part of the stock’s decline from recent highs; StockAnalysis data show Cloudflare traded as high as $370.35 on Oct. 6. The report does not indicate how the shares will trade when U.S. markets reopen Monday.

Sources: Cloudflare, Third Quarter 2026 Financial Results, Nov. 5, 2026; Investing.com, Nov. 5–6, 2026; Investing.com premarket movers, Nov. 6, 2026; StockAnalysis historical prices (S&P Global Market Intelligence).