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An update from Cloudflare ( (NET) ) is now available.
On May 7, 2026, Cloudflare reported first-quarter 2026 revenue of $639.8 million, up 34% year over year, alongside a GAAP operating loss of $62.0 million and non-GAAP operating income of $73.1 million, reflecting strong top-line momentum and improving profitability metrics. The company also highlighted robust cash generation, with $158.3 million in operating cash flow, $84.1 million in free cash flow, and $4.16 billion in cash and securities as of March 31, 2026, while management said AI is becoming a major driver of demand and product evolution.
On the same day, Cloudflare unveiled a restructuring plan to accelerate its shift to an agentic AI-first operating model, including cutting roughly 20% of its workforce, or about 1,100 roles, and booking an estimated $140 million to $150 million in related charges, mostly in the second and third quarters of fiscal 2026. The move, which follows the company’s own heavy internal use of AI and agents, is intended to reshape its cost base and organizational structure to improve speed and innovation, with implications for employees but aimed at strengthening competitiveness in the rapidly evolving cloud and AI infrastructure market.
Cloudflare also issued guidance for the second quarter of fiscal 2026, projecting revenue of $664 million to $665 million and non-GAAP operating income of $90 million to $91 million, and set full-year 2026 targets of $2.81 billion in revenue and roughly $418 million to $421 million in non-GAAP operating income. The company continued to emphasize its use of multiple digital and social channels for disseminating material information to investors and the public, underscoring its push to position itself at the center of AI-driven internet infrastructure while managing the operational and financial impact of its restructuring program.
The most recent analyst rating on (NET) stock is a Buy with a $250.00 price target. To see the full list of analyst forecasts on Cloudflare stock, see the NET Stock Forecast page.
Spark’s Take on NET Stock
According to Spark, TipRanks’ AI Analyst, NET is a Neutral.
NET scores as moderately attractive, led by improving business momentum and forward outlook from the latest earnings call (strong revenue growth guidance, enterprise traction, and rising cash generation). This is tempered by elevated balance-sheet leverage and still-weak earnings quality in the provided financial statements, plus a technically overbought setup. Valuation is a meaningful headwind given the deeply negative P/E and no stated dividend support.
To see Spark’s full report on NET stock, click here.
More about Cloudflare
Cloudflare, Inc., listed on the NYSE under the ticker NET, operates as a leading connectivity cloud company. It provides internet security, performance, and reliability services that help businesses build, secure, and accelerate applications and networks, with a growing focus on integrating artificial intelligence and agent-based automation into its offerings and internal operations.
Average Trading Volume: 4,546,983
Technical Sentiment Signal: Buy
Current Market Cap: $87.5B
For an in-depth examination of NET stock, go to TipRanks’ Overview page.