Cloudflare Posts $783M Q3 Revenue, Raises 2026 Outlook

Cloudflare, Inc. said Thursday that third-quarter revenue rose 39% to $782.5 million from a year earlier, its fastest growth in nearly four years, and that it was raising its full-year 2026 revenue outlook to $2.963 billion to $2.964 billion.

The San Francisco internet-infrastructure company said non-GAAP net income was $143.7 million, or $0.38 a diluted share, up from $102.6 million, or $0.27, a year earlier. CryptoBriefing, citing MarketBeat consensus figures, said the results topped expectations of roughly $737 million in revenue and about $0.34 in adjusted earnings per share. StockTitan carried the same company release attached to Cloudflare’s Form 8-K.

Profit, cash and contracts

GAAP results remained negative: Cloudflare posted a net loss of $34.1 million, or 10 cents a share, compared with a $1.3 million loss a year earlier, and a GAAP operating loss of $67.9 million, or 8.7% of revenue. Non-GAAP operating income rose to $137.1 million, or 17.5% of revenue, from $85.9 million, or 15.3%, a year earlier.

Operating cash flow was $215.4 million and free cash flow $82.1 million, or 10% of revenue. Cash, cash equivalents and available-for-sale securities stood at $5.13 billion as of Sept. 30. Current remaining performance obligations, contracted revenue expected within 12 months, grew 37% year over year, the company said.

Chief Executive Matthew Prince called the quarter Cloudflare’s best ever and said annualized revenue had crossed $3 billion.

Fourth-quarter and full-year guidance

For the fourth quarter, Cloudflare forecast revenue of $845 million to $846 million, non-GAAP operating income of $156 million to $157 million, and non-GAAP net income of $0.43 a share on about 379 million diluted shares. Full-year non-GAAP operating income is now projected at $462 million to $463 million, with non-GAAP earnings of $1.35 a share.

CryptoBriefing reported that Cloudflare shares jumped more than 17% in after-hours trading after the release, following a decline during the regular session amid a broader technology sell-off.

Sources: Cloudflare, CryptoBriefing, StockTitan