Tech & AI
Cloudflare Q3 Revenue Rises 39% to $782.5 Million, Fastest Growth in Nearly Four Years
The web-infrastructure firm guided fourth-quarter revenue to about $845 million and passed a $3 billion annualised run rate.
HedgeWeekly Tech & AI Desk ·
Cloudflare reported third-quarter revenue of $782.5 million on Thursday, up 39% from a year earlier. Current remaining performance obligations, contracted revenue due to be recognised over the next 12 months, rose 37%. Chief executive Matthew Prince called it the company's best quarter and its fastest growth in nearly four years, and said revenue had crossed a $3 billion annualised run rate.
The company made a GAAP operating loss of $67.9 million, or 8.7% of revenue, and a net loss of $34.1 million, or 10 cents a share. On a non-GAAP basis, which strips out items such as share-based pay, operating income was $137.1 million (17.5% of revenue) and earnings were 38 cents a share. Free cash flow was $82.1 million, or 10% of revenue.
For the fourth quarter Cloudflare guided to revenue of $845.0 million to $846.0 million, non-GAAP operating income of $156.0 million to $157.0 million and non-GAAP earnings of 43 cents a share. Full-year 2026 revenue is guided to about $2.963 billion to $2.964 billion, with non-GAAP earnings of $1.35 a share.
Why it matters: the print shows AI-driven traffic and security demand lifting a network-services business at a time when investors are questioning returns on AI spending after this week's sharp tech sell-off. Watch whether growth holds near 40% as the comparison base rises, whether GAAP losses narrow, and how the shares trade relative to the guidance, which is tightly bracketed.