Scotiabank Has Weak Forecast for Cloudflare FY2026 Earnings

Cloudflare, Inc. (NYSE:NET) – Scotiabank dropped their FY2026 earnings per share (EPS) estimates for Cloudflare in a research report issued to clients and investors on Wednesday, February 11th. Scotiabank analyst P. Colville now expects that the company will post earnings per share of ($0.12) for the year, down from their previous forecast of $0.07. Scotiabank has a “Sector Perform” rating and a $225.00 price target on the stock. The consensus estimate for Cloudflare’s current full-year earnings is ($0.11) per share. Scotiabank also issued estimates for Cloudflare’s FY2027 earnings at $0.01 EPS.

Cloudflare (NYSE:NET) last announced its quarterly earnings results on Tuesday, February 10th. The company reported $0.28 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.27 by $0.01. The company had revenue of $614.51 million during the quarter, compared to the consensus estimate of $591.67 million. Cloudflare had a negative return on equity of 7.40% and a negative net margin of 4.72%.Cloudflare’s revenue for the quarter was up 33.6% on a year-over-year basis. During the same period in the previous year, the company posted $0.19 earnings per share.

A number of other research analysts have also recently weighed in on NET. Truist Financial set a $225.00 price objective on shares of Cloudflare in a report on Tuesday, January 20th. Robert W. Baird set a $260.00 price target on Cloudflare and gave the stock an “outperform” rating in a report on Wednesday. JMP Securities set a $270.00 price objective on Cloudflare in a report on Friday, October 31st. Needham & Company LLC cut their price objective on Cloudflare from $285.00 to $250.00 and set a “buy” rating for the company in a research report on Wednesday, February 11th. Finally, UBS Group reiterated a “neutral” rating and set a $220.00 target price on shares of Cloudflare in a research report on Wednesday. One equities research analyst has rated the stock with a Strong Buy rating, twenty have assigned a Buy rating, seven have assigned a Hold rating and three have given a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $232.11.

Cloudflare Stock Performance

NET opened at $196.00 on Monday. The firm has a fifty day moving average price of $190.27 and a 200 day moving average price of $204.83. Cloudflare has a 1 year low of $89.42 and a 1 year high of $260.00. The stock has a market cap of $68.66 billion, a P/E ratio of -675.84 and a beta of 1.97. The company has a debt-to-equity ratio of 1.46, a current ratio of 2.04 and a quick ratio of 2.04.

Insider Transactions at Cloudflare

In related news, insider Douglas James Kramer sold 3,000 shares of the stock in a transaction on Monday, February 2nd. The stock was sold at an average price of $176.19, for a total value of $528,570.00. Following the completion of the transaction, the insider directly owned 101,101 shares of the company’s stock, valued at approximately $17,812,985.19. This represents a 2.88% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Michelle Zatlyn sold 25,641 shares of the firm’s stock in a transaction on Thursday, January 15th. The shares were sold at an average price of $190.05, for a total value of $4,873,072.05. Following the completion of the transaction, the insider owned 24,555 shares in the company, valued at $4,666,677.75. The trade was a 51.08% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 565,963 shares of company stock valued at $111,028,286. Insiders own 10.89% of the company’s stock.

Hedge Funds Weigh In On Cloudflare

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Empowered Funds LLC raised its holdings in Cloudflare by 34.2% in the 1st quarter. Empowered Funds LLC now owns 6,656 shares of the company’s stock valued at $750,000 after acquiring an additional 1,696 shares during the last quarter. Sivia Capital Partners LLC purchased a new stake in shares of Cloudflare in the second quarter valued at approximately $424,000. MGO One Seven LLC acquired a new stake in shares of Cloudflare in the second quarter valued at approximately $379,000. Yousif Capital Management LLC increased its holdings in shares of Cloudflare by 1.9% in the second quarter. Yousif Capital Management LLC now owns 4,044 shares of the company’s stock valued at $792,000 after purchasing an additional 75 shares during the last quarter. Finally, Harbour Investments Inc. lifted its position in Cloudflare by 4.1% during the second quarter. Harbour Investments Inc. now owns 2,479 shares of the company’s stock worth $485,000 after buying an additional 98 shares in the last quarter. 82.68% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Cloudflare

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Q4 beat — Cloudflare reported revenue of ~$614.5M (+33.6% YoY) and EPS of $0.28, with management highlighting record deal activity, rising RPO/cRPO and improving free cash flow. MSN: Q4 growth
• Positive Sentiment: Revenue guidance topped estimates — management raised FY‑2026 revenue outlook (management cited a figure near $2.795B), signaling confidence in sustained demand and driving the rally. Investing.com: Guidance beats
• Positive Sentiment: AI tailwind — multiple reports and management commentary point to rising “agentic” traffic (e.g., Moltbot) that boosts security, networking and edge services, creating a durable demand cycle. Yahoo: AI deals
• Positive Sentiment: Analyst upgrades and higher targets — several firms upgraded or raised targets (examples include Robert W. Baird to outperform/$260 and DZ Bank to buy/$215), adding conviction to the upside thesis. Finviz: Analyst moves
• Positive Sentiment: Elevated options activity — unusually large call buying (13,474 contracts) suggests short‑term bullish/speculative positioning around the stock.
• Neutral Sentiment: Mixed analyst notes — some firms reaffirm neutral/hold stances (Cantor Fitzgerald) or trimmed PTs modestly while keeping buy ratings, reflecting differing views on valuation vs. growth. Zacks: Analyst roundup
• Neutral Sentiment: Valuation questions persist — coverage pieces and valuation checks note Cloudflare’s rich multiples given ongoing margin/headwind dynamics, so upside depends on continued revenue leverage. Yahoo: Valuation check
• Negative Sentiment: Insider sale disclosed — director John Graham‑Cumming sold 2,520 shares; small relative to his holdings but noted by the market. SEC: Form 4
• Negative Sentiment: Institutional profit‑taking — at least one fund materially trimmed its stake in recent filings, evidence of some near‑term selling pressure amid the rally. DefenseWorld: Institutional trimming
• Negative Sentiment: Some target cuts — a few analysts reduced price targets (e.g., Scotiabank), underscoring uneven short‑term sentiment despite the beat. TickerReport: PT cuts

About Cloudflare

Cloudflare, Inc is a global web infrastructure and security company that provides a suite of services designed to improve the performance, reliability and security of internet properties. Its core offerings include a content delivery network (CDN), distributed denial-of-service (DDoS) protection, managed DNS, and a web application firewall (WAF). Cloudflare also provides tools for bot management, SSL/TLS, load balancing and rate limiting to help organizations maintain uptime and protect web applications from attack.

In addition to traditional edge and security services, Cloudflare has expanded into edge computing and developer platforms.