Cloudflare, Inc. (NET) Earnings
Cloudflare, Inc. is expected to report next earnings on July 30, 2026 (in NaN days), with a consensus EPS estimate of $0.26. NET has beaten EPS estimates in 11 of its last 12 reported quarters (average surprise +9.5% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 7, 2026 | $0.23 | $0.25 | +8.4% | $640M | +3.0% |
| Oct 30, 2025 | $0.23 | $0.27 | +17.3% | $562M | +3.2% |
| Jul 31, 2025 | $0.18 | $0.21 | +14.5% | $512M | +2.2% |
| May 8, 2025 | $0.16 | $0.16 | -2.3% | $479M | +2.1% |
| Feb 6, 2025 | $0.18 | $0.19 | +5.6% | $460M | +1.7% |
| Nov 7, 2024 | $0.18 | $0.20 | +11.5% | $430M | +1.4% |
| Aug 1, 2024 | $0.14 | $0.20 | +42.0% | $401M | +1.7% |
| May 2, 2024 | $0.13 | $0.16 | +21.4% | $379M | +1.4% |
| Feb 8, 2024 | $0.12 | $0.15 | +23.9% | $362M | +2.7% |
| Nov 2, 2023 | $0.10 | $0.16 | +60.0% | $336M | +1.5% |
| Aug 3, 2023 | $0.07 | $0.10 | +42.9% | $308M | +1.0% |
| Apr 27, 2023 | $0.03 | $0.08 | +133.4% | $290M | -5.5% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q1 FY2026 · May 7, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
2026 started strongly with revenue growth. Significant customer wins in the quarter. Internally, AI usage increased by over 600% in three months. Employees across functions use AI tools. Announced actions to accelerate evolution to an agentic AI-first operating model, resulting in over 1,100 team members being let go.
Guidance
Q2 2026 revenue expected to be in range of $664 million to $665 million, up 30% y-o-y. Operating income expected $90 million to $91 million. Effective tax rate 21.5%. Diluted net income per share $0.27. Full-year 2026 revenue expected $2.805 billion to $2.813 billion, up 30% y-o-y midpoint. Operating income $418 million to $421 million. Effective tax rate 20.5%. Diluted net income per share $1.19 to $1.20.
Segment performance
Revenue was $639.8 million, up 34% year-over-year. There are 4,416 customers paying over $100,000 per year, a 25% increase year-over-year. Revenue contribution from large customers grew 38% year-over-year, contributing 72% of revenue. Dollar-based net retention was 118%, down 2% quarter-over-quarter and up 7% year-over-year. Gross profit margin was 72.8%. Operating profit was $73.1 million with an operating margin of 11.4%. Strong free cash flow of $84.1 million was generated. Highlights include record number of largest customers, bookings from new customers at highest rate since 2023, etc.
Risks & headwinds
Forward-looking statements are subject to risks and uncertainties. Actual results may differ significantly. Risks include customers, vendors, partners, operations, future financial performance, product launches, market potential, macroeconomic conditions. Also, risks related to the restructuring action.
Analyst Q&A
Q: Why is Cloudflare seeing strong tailwinds in traffic monetization and why restructure despite strong Q1?
A: Matt Prince said it's about right roles for future, and Cloudflare's approach to essential traffic and Workers platform sets it apart.
Q: How balance AI coding adoption and cost?
A: Matthew Prince said can route tasks to own infrastructure for lower cost.
Q: Thoughts on fleet mix and Anthropic managed agents?
A: Matthew Prince said abstracts silicon, matches workloads, and Anthropic moves are positive.
Q: Thomas on margin structure and Act 4 milestones?
A: Thomas said unit economic margin will increase, and Act 4 needs lighthouse accounts, etc.
Q: James on GPU utilization and security cycles?
A: Thomas said no restriction on leaning into opportunity, Matthew said hardware issues drive cloud evaluation.
Q: Gabriela on fleet mix and Anthropic?
A: Matthew said matches workloads to silicon, Anthropic moves positive.
Q: Shaul on sales capacity and partners?
A: Thomas said increase sales capacity productivity, Matthew said partners important and will change.