Cloudflare Stock Jumps After Hours as Q3 Revenue Grows 39%
Cloudflare's Q3 revenue rose 39% to $782.5 million, topping estimates, and it raised its 2026 outlook. Shares jumped about 17% to 18% after hours Thursday.
Cloudflare reported third-quarter revenue of $782.5 million after the bell on Thursday, November 5, 2026, up 39% from a year earlier, and raised its forecast for the full year. Shares jumped in extended trading: StockStory said the stock rose 18.2% to $289.72 right after the release, while Seeking Alpha put the gain at 17%.
The jump stood out on a day when the Nasdaq fell 5.5% in a broad tech selloff; see our market close story.
The numbers
Measure | Q3 2026 | Q3 2025 |
|---|---|---|
Revenue | $782.5 million | $562.0 million |
GAAP operating loss | $67.9 million | $37.5 million |
Non-GAAP operating income | $137.1 million (17.5% margin) | $85.9 million (15.3% margin) |
GAAP net loss per share | $0.10 | $0.00 |
Non-GAAP EPS | $0.38 | $0.27 |
Free cash flow | $82.1 million | $75.0 million |
Source: Cloudflare's press release for the quarter ended September 30, 2026. The company also said current remaining performance obligations, a measure of contracted revenue due over the next 12 months, grew 37% from a year earlier.
Analysts polled by S&P had expected revenue of $736.8 million and adjusted EPS of $0.34, according to StockStory. Seeking Alpha listed a revenue estimate of $739.7 million and the same $0.34 EPS estimate.
CEO Matthew Prince said in the release: "The third quarter was Cloudflare's best quarter ever." He added that the company had passed $3 billion in annualized revenue.
Guidance
Period | Revenue | Non-GAAP operating income | Non-GAAP EPS |
|---|---|---|---|
Q4 2026 | $845.0M–$846.0M | $156.0M–$157.0M | $0.43 |
Full year 2026 | $2,963.0M–$2,964.0M | $462.0M–$463.0M | $1.35 |
Source: Cloudflare. Seeking Alpha said the full-year revenue outlook was raised from $2.865 billion and compared it with a consensus of $2.87 billion; for the fourth quarter it put the revenue estimate at $799 million.
Worth watching
Cloudflare's release also refers to a plan to move faster toward what it calls an "agentic AI-first operating model," including an estimated reduction of its current workforce. The company recorded $11.0 million of restructuring and other charges in the third quarter. The release text we reviewed did not give a headcount figure.
What it means for investors
Cloudflare runs a global network that speeds up and protects websites and apps, and it is pitching that network as a place to run AI software. Two things drove the reaction: growth sped up to 39%, and the company lifted its outlook above Wall Street's numbers.
Keep two cautions in mind. Cloudflare still posts a GAAP loss; the profit figures above exclude stock-based pay and other costs, so read both, as our guide on how to read an earnings report explains. And after-hours prices are set on thin volume and can change by Friday's open; see our guide to stock market hours.
This article is for information only and is not investment advice.
Sources
- Cloudflare: Announces Third Quarter 2026 Financial Results (press release via Stock Titan, November 5, 2026)
- StockStory via FinancialContent: Cloudflare delivers strong Q3 2026 numbers, stock jumps 18.2% (November 5, 2026)
- Seeking Alpha via TradingView: Cloudflare catapults as Q3 revenue surges 39%, raises full-year guidance (November 5, 2026)
This article is for information only and is not investment advice. Do your own research before buying or selling any asset.