Cloudflare earnings: third quarter 2026

Cloudflare, which runs a worldwide network that speeds up and protects websites and online services, grew sales 39% to $782.5 million in its third quarter of 2026. Its profit from running the business grew faster still. But it kept less of each sales dollar after the direct cost of delivering its services. Heavy spending on its network meant the cash left over barely grew. The day's main news was its forecast for the year: it raised its expectations for both sales and profit. ¹

Against what analysts expected

Analysts on average expected profit per share of $0.02 for the quarter, according to Nasdaq's earnings calendar. ¹²

The strong points

• Sales rose 39% on a year ago, to $782.5 million. ¹
• The company's own adjusted operating profit, which leaves out pay in shares and one-off items, rose to $137.1 million from $85.9 million a year ago. ¹

The weak points

• Gross margin fell to 71.2% from 74.0% a year ago, because the direct cost of delivering its services grew faster than sales. ¹
• Free cash flow rose only slightly, to $82.1 million, while sales grew 39%. ¹

What the company expects

• Cloudflare now expects sales of $2,963 million to $2,964 million for 2026, up from the $2,864 million to $2,870 million it expected three months ago. ¹
• It also raised its yearly forecast for adjusted operating profit to $462 million to $463 million, from $443 million to $445 million. ¹

Our verdict on the quarter

A very strong report. Cloudflare raised its forecasts for the year's sales and profit while sales grew 39% and profit from running the business grew faster still. A slimmer gross margin and flat free cash flow are the cost of building out its network.

The results as published

• The results release itself
• The filing it came with (SEC)
• The previous results, for what it forecast then

Notes

1. Cloudflare's results release, 5 November 2026: sec.gov. ↩
2. Nasdaq's earnings calendar, 5 November 2026. ↩