Cloudflare Inc. (NYSE:NET) stock is trading higher in Wednesday’s premarket session after the cloud infrastructure company reported fourth-quarter results that exceeded Wall Street expectations, driven by surging artificial intelligence-related demand.
The San Francisco-based company reported fourth-quarter revenue of $614.51 million, topping analyst estimates of $591.28 million. Adjusted earnings came in at 28 cents per share, beating the consensus estimate of 27 cents.
Total revenue climbed 34% year-over-year. The company posted an operating loss of $49.2 million but generated adjusted operating income of $89.6 million. Free cash flow reached $99.4 million in the quarter.
2026 Outlook Tops Revenue Expectations
For the first quarter, Cloudflare expects revenue of $620 million to $621 million, above the Street’s estimate of $613.93 million. However, the company guided to adjusted EPS of 23 cents, below the 25-cent consensus.
Full-year 2026 revenue guidance of $2.79 billion to $2.80 billion exceeded analyst expectations of $2.74 billion. The company projects full-year adjusted EPS of $1.11 to $1.12 versus estimates of $1.21.
Technical Analysis
Currently, Cloudflare is trading approximately 14% above its 20-day simple moving average (SMA) and just 0.1% below its 100-day SMA, indicating a strong short-term momentum while maintaining longer-term strength. Over the past 12 months, shares have increased by 4.31%, and the stock is positioned closer to its 52-week highs than lows, suggesting a bullish trend.
The RSI is at 48.92, indicating neutral momentum, while the MACD is above its signal line, suggesting bullish conditions. The combination of neutral RSI and bullish MACD suggests mixed momentum, indicating potential for further upward movement.
- Key Resistance: $218.50
- Key Support: $191.00
Earnings & Analyst Outlook
Cloudflare, Inc. common stock, par value $0.001 per share, is slated to provide its next financial update on May 7, 2026.
- EPS Estimate: 17 cents (Up from 16 cents YoY)
- Revenue Estimate: $590.89 million (Up from $479.09 million YoY)
Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $217.03. Recent analyst moves include:
- Needham: Buy (Lowers Target to $250.00) (Feb. 11)
- BTIG: Buy (Raises Target to $243.00) (Feb. 11)
- BTIG: Upgraded to Buy (Target $199.00) (Feb. 4)
NET Price Action: Cloudflare shares were up 14.38% at $205.86 during premarket trading on Wednesday, according to Benzinga Pro data.
Photo by Piotr Swat via Shutterstock
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