Cloudflare stock gets stronger outlook after 39% revenue growth

Cloudflare reported its third-quarter results after the U.S. market closed on Thursday, November 5, 2026. Revenue rose 39 percent year over year to 782.5 million US dollars for the quarter ended September 30. The release, carried by Yahoo Finance from Business Wire, described the period as the company's strongest quarter to date.

Revenue growth accelerates

Cloudflare's GAAP gross profit increased to 557.2 million US dollars from 415.7 million US dollars a year earlier. The GAAP gross margin declined to 71.2 percent from 74.0 percent, while non-GAAP gross margin was 72.4 percent against 75.3 percent in the prior-year quarter.

GAAP operating loss widened to 67.9 million US dollars from 37.5 million US dollars. Cloudflare reported non-GAAP operating income of 137.1 million US dollars, up from 85.9 million US dollars, lifting the adjusted operating margin to 17.5 percent from 15.3 percent. The company attributed the quarter's momentum to its Workers Developer Platform, agentic workloads, large customer cohorts and sales execution.

GAAP net loss reached 34.1 million US dollars, compared with 1.3 million US dollars in the third quarter of 2025. On an adjusted basis, net income rose to 143.7 million US dollars from 102.6 million US dollars, while diluted non-GAAP earnings per share increased to 0.38 US dollars from 0.27 US dollars.

Guidance points to continued momentum

For the fourth quarter, Cloudflare expects revenue between 845.0 million and 846.0 million US dollars, non-GAAP operating income of 156.0 million to 157.0 million US dollars and adjusted diluted earnings of 0.43 US dollars per share. The company also expects to reach GAAP profitability in the final quarter of 2026.

Full-year revenue guidance stands at 2.963 billion to 2.964 billion US dollars. Cloudflare expects non-GAAP operating income of 462.0 million to 463.0 million US dollars and adjusted earnings of 1.35 US dollars per diluted share. The outlook gives investors a near-term test of whether the faster revenue growth can translate into broader operating leverage.

Cloudflare stock keeps investors focused

Cloudflare stock traded at 263.10 euros on Lang & Schwarz at 14:01 CET on Friday, November 6, 2026. The real-time quote of Cloudflare stock provides the latest trading indication.

The results strengthen the investment case around Cloudflare's growth platform, but the higher adjusted profitability remains accompanied by a GAAP loss and a lower GAAP gross margin. Investors will therefore watch revenue execution, cash generation and the path to sustained GAAP earnings in the coming quarters.

U.S. technology shares remain sensitive to growth expectations and valuation moves across the S&P 500.

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