Cloudflare, Inc. (NET) AI Stock Analysis

Cloudflare, Inc. provides integrated cloud-based security, performance, and reliability solutions to businesses worldwide. Its security offerings protect public cloud, private cloud, on-premise, software-as-a-service, and IoT platforms via cloud firewalls, bot management, DDoS mitigation, SSL/TLS encryption, secure origin connections, and rate limiting. The company delivers performance solutions, including content delivery networks, intelligent routing, and mobile and image optimization. Cloudflare also offers reliability infrastructure, such as load balancing, anycast network architecture, virtual backbone services, and DNS services. In addition, it provides developer solutions encompassing serverless computing, programmable network tools, website development, domain registration, and data localization management.

Cloudflare expanded its annual revenue from $656.4M in FY2021 to $2.17B in FY2025, representing a 5-year revenue CAGR of 38.1%. Revenue grew 29.8% in FY2025, following a 28.8% increase in FY2024. For the latest quarter ended June 30, 2026, quarterly revenue grew 35.9% year-over-year, lifting trailing twelve month revenue to $2.51B. While gross margin was 74.5% in FY2025, operating margin was -9.6% and net income was -$102.3M. Over the trailing twelve months, operating margin was -7.6% and net margin was -8.2%, with an EPS of -$0.58.

As of June 30, 2026, Cloudflare held $4.16B in cash and short-term investments against $3.53B in total debt, yielding net cash of $633.4M. Shareholders' equity stood at $1.62B with a current ratio of 1.82 and a debt-to-equity ratio of 2.18. In FY2025, operating cash flow grew to $603.1M and free cash flow reached $324.3M, while capital expenditures totaled $342.6M. Share issuance provided $25.4M, with share count increasing 10.6% over 5 years.

At $296.30, Cloudflare trades at an enterprise value of $124.82B and a market cap of $105.51B. The stock trades at a forward P/E of 178.6x and a price-to-sales multiple of 42.0x, compared to the median of its US-listed Technology peers of 18.8x forward earnings and 2.8x sales. Its price-to-book ratio is 77.4x and EV-to-revenue is 49.7x. Over the past year, NET gained 40.2%, outpacing the S&P 500's 16.8% return, though its 5-year return of 76.7% trailed the benchmark's 83.0%.

Wall Street analysts hold 16 Strong Buy, 7 Buy, 9 Hold, 1 Sell, and 1 Strong Sell ratings on Cloudflare. The mean price target is $343.42, representing an upside of 15.9% from the last close of $296.30. For the fiscal year ending December 31, 2026, analysts estimate revenue of $2.87B and EPS of $1.26, indicating 35.8% EPS growth. Cloudflare has exceeded EPS estimates in 3 of the last 4 quarters, and its next earnings date is scheduled for November 5, 2026.

This page is an AI-written research summary of Cloudflare, Inc. (NET). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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