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Cloudflare Stocks Surge 10.9% After 39% Revenue Jump and Fresh Guidance
Cloudflare reported third-quarter revenue of $782.5 million, up 39% from a year earlier, and non-GAAP operating income of $137.1 million. It forecast fourth-quarter revenue of $845 million to $846 million and full-year 2026 revenue of $2.963 billion to $2.964 billion, with non-GAAP earnings per share of $1.35.
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What happened
Cloudflare reported third-quarter revenue of $782.5 million, up 39% from a year earlier, and non-GAAP operating income of $137.1 million. It forecast fourth-quarter revenue of $845 million to $846 million and full-year 2026 revenue of $2.963 billion to $2.964 billion, with non-GAAP earnings per share of $1.35.
Confirmed
Global impact / market context
Fast revenue growth and positive free cash flow suggest Cloudflare is converting demand into cash, while its higher operating profit per sale points to improving cost control. Meeting the next-quarter forecast while widening that profit measure could strengthen confidence in its growth and financial performance.
Analyst inference
The article says investors are punishing software companies viewed as likely to lose from AI, while Cloudflare’s results offered a counterargument. But its shares were about 37% above the cited GF Value of $198.03, leaving less room for disappointing growth or profits.
Analyst inference
What to watch
- Check whether fourth-quarter revenue reaches the company’s $845 million to $846 million forecast; falling short would weaken the case that demand is sustaining its recent growth. Analyst inference
- Watch whether Cloudflare widens its non-GAAP operating margin, the share of revenue left after operating costs, beyond the reported 17.5% as revenue grows. Analyst inference
- Track current remaining performance obligations, meaning contracted work expected to be delivered soon; the article reports they rose 37%, keeping pace with revenue. Confirmed