Cloudflare Raises 2026 Revenue Outlook as Third-Quarter Growth Hits 39%

Cloudflare shares climbed 15.17% to $281.60 in premarket trading at 6 a.m. ET Friday (11:00 UTC), after the company raised its fiscal 2026 revenue outlook. The stock closed Thursday at $244.51.

Revenue for the quarter ended Sept. 30 totaled $782.5 million, up 39% from a year earlier. Growth accelerated from 36% in the second quarter, when revenue was $696.1 million. CEO Matthew Prince called the third quarter the company’s “best quarter ever.”

Cloudflare now expects fiscal 2026 revenue of $2.963 billion to $2.964 billion, up from its previous range of $2.864 billion to $2.870 billion. It forecast fourth-quarter revenue of $845 million to $846 million.

Non-GAAP net income was $143.7 million, or 38 cents per diluted share. The company recorded a GAAP net loss of $34.1 million, or 10 cents per share, compared with a $1.3 million loss and no loss per share in the year-earlier quarter.

Non-GAAP operating income rose to $137.1 million, equal to 17.5% of revenue, from $85.9 million, or 15.3%, a year earlier. GAAP gross margin declined to 71.2% from 74%.

The earnings update follows J.P. Morgan’s rating upgrade after a recent pullback in Cloudflare shares.