Upside case
Bull case
$11-95.1%
The bull case prices NET at 9x on FY1 earnings, assuming continued execution and no meaningful deceleration in the core business.
Analysis OverviewBuyUpdated Jun 18, 2026
Cloudflare, Inc. (NET) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Buy
Covering
40
analysts
28 bullish · 2 bearish · 40 covering NET
Strong Buy
0
Buy
28
Hold
10
Sell
2
Strong Sell
0
Consensus Target
$229
+2.2% vs today
Scenario Range
$5 – $11
Model bear to bull value window
Coverage
40
Published analyst ratings
Valuation Context
187.1x
Forward P/E · Market cap $79.2B
NET price targets
Three scenarios for where NET stock could go
Current
~$224
Confidence
73 / 100
Updated
Jun 18, 2026
Where we are now
Current · $224
Bear
$5
Base
$8
Bull
$11
Market caseClosest to today
Base case
$8-96.2%
At 7x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$5-97.6%
If investor confidence fades or macro conditions deteriorate, a 183x multiple contraction could push NET down roughly 98% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Cloudflare, Inc.
NET · NYSETechnologySoftware - InfrastructureDecember year-end
Cloudflare operates a global cloud platform that provides security, performance, and reliability services for websites and applications. It generates revenue primarily through subscription-based services — including security solutions (~60% of revenue), performance optimization (~25%), and developer tools — with enterprise customers driving most of its growth. The company's key advantage is its massive global network infrastructure — spanning over 300 cities worldwide — which creates network effects and makes it difficult for competitors to replicate its scale and performance.
Market Cap
$79.2B
Revenue TTM
$2.3B
Net Income TTM
-$87M
Net Margin
-3.7%
NET Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
92%Exceptional
12 quarters tracked
Revenue Beat Rate
100%Exceptional
vs consensus estimates
Avg EPS Surprise
+20.7%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 4 of 4Q3 2025
EPS
$0.21/$0.18
Revenue
$512M/$501M
Q4 2025
EPS
$0.27/$0.23
Revenue
$562M/$545M
Q1 2026
EPS
$0.28/$0.27
Revenue
$615M/$591M
Q2 2026
EPS
$0.25/$0.23
Revenue
$640M/$621M
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q3 2025 | $0.21/$0.18 | +14.5% | $512M/$501M | +2.2% |
| Q4 2025 | $0.27/$0.23 | +17.3% | $562M/$545M | +3.2% |
| Q1 2026 | $0.28/$0.27 | +3.2% | $615M/$591M | +3.9% |
| Q2 2026 | $0.25/$0.23 | +8.4% | $640M/$621M | +3.0% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$2.8B
+19.5% YoY
FY2
$3.4B
+22.1% YoY
EPS Outlook
FY1
$0.46
+288.3% YoY
FY2
$0.47
+0.8% YoY
Trailing FCF (TTM)$379M
FCF Margin: 16.3%
Next Earnings
July 30, 2026
Expected EPS
$0.26
Expected Revenue
$665M
NET beat EPS estimates in 4 of 4 tracked quarters. A perfect track record raises the bar for the upcoming report.
NET Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $2.2B
Product Mix
Latest annual revenue by segment or product family
Reportable Segment
100.0%
+29.8% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
UNITED STATES
49.5%
+26.3% YoY
Tap, hover, or focus a slice to inspect segment detail.
Reportable Segment is the largest disclosed segment at 100.0% of FY 2025 revenue, up 29.8% YoY.
UNITED STATES is the largest reported region at 49.5%, up 26.3% YoY.
NET Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Expensive versus peers
Fair value est. $30 — implies -86.5% from today's price.
Premium to Fair Value
86.5%
above fair value
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
NET
-772.8x
vs
S&P 500
24.4x
3261% discount
vs Technology Trailing P/E
NET
-772.8x
vs
Technology
29.0x
2764% discount
vs NET 5Y Avg P/E
Today
-772.8x
vs
5Y Average
—
Benchmark unavailable
Forward PE
187.1x
S&P 500
18.8x
+895%
Technology
22.3x
+740%
5Y Avg
—
—
Trailing PE
-772.8x
S&P 500
24.4x
-3261%
Technology
29.0x
-2764%
5Y Avg
—
—
PEG Ratio
—
S&P 500
1.66x
—
Technology
1.51x
—
5Y Avg
—
—
EV/EBITDA
930.8x
S&P 500
15.2x
+6019%
Technology
16.6x
+5499%
5Y Avg
—
—
Price/FCF
244.3x
S&P 500
20.7x
+1080%
Technology
19.2x
+1172%
5Y Avg
188.2x
+30%
Price/Sales
36.5x
S&P 500
3.1x
+1082%
Technology
2.4x
+1398%
5Y Avg
22.6x
+62%
Dividend Yield
—
S&P 500
1.91%
—
Technology
1.11%
—
5Y Avg
—
—
| Metric | NET | S&P 500 | Technology | 5Y Avg NET |
|---|---|---|---|---|
| Forward PE | 187.1x | 18.8x+895% | 22.3x+740% | — |
| Trailing PE | -772.8x | 24.4x-3261% | 29.0x-2764% | — |
| PEG Ratio | — | 1.66x | 1.51x | — |
| EV/EBITDA | 930.8x | 15.2x+6019% | 16.6x+5499% | — |
| Price/FCF | 244.3x | 20.7x+1080% | 19.2x+1172% | 188.2x+30% |
| Price/Sales | 36.5x | 3.1x+1082% | 2.4x+1398% | 22.6x+62% |
| Dividend Yield | — | 1.91% | 1.11% | — |
NET trades above S&P 500 benchmarks on 4 of 5 measured multiples — commands a broad premium across most valuation dimensions.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolNET Financial Health
Verdict
Stressed
NET generates $379M in free cash flow at a 16.3% margin.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$2.3B
Revenue Growth
TTM vs prior year
+31.6%
Gross Margin
Gross profit as a share of revenue
73.5%
Operating Margin
Operating income divided by revenue
-9.1%
Net Margin
Net income divided by revenue
-3.7%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$-0.25
Free Cash Flow (TTM)
Cash generation after capex
$379M
FCF Margin
FCF as share of revenue — the primary cash quality signal
16.3%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
-4.6%
ROA
Return on assets, trailing twelve months
-1.5%
Cash & Equivalents
Liquid assets on the balance sheet
$944M
Net Debt
Total debt minus cash
$2.8B
Debt Serviceability
Net debt as a multiple of annual free cash flow
7.3× FCF
~7.3 years to full repayment at current FCF run-rate
ROE *
Return on equity, trailing twelve months
-6.2%
* Elevated by buyback-compressed equity — compare ROIC (-4.6%) for an undistorted picture of capital efficiency.
Shareholder Returns
How capital is returned to owners
Total shareholder yield
0.0%
Dividend
—
Buyback
0.0%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$0
Dividend / Share
Annualized trailing dividend per share
—
Payout Ratio
Share of earnings distributed as dividends
—
Shares Outstanding
Current diluted share count
353M
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt). ROE marked * where buyback-compressed equity base may inflate the figure.
Open full ratios pageNET Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated June 17, 2026
High Risk
Valuation Concerns
Cloudflare is trading at 20-25x forward revenue, which is expensive relative to near-term fundamentals and priced for dominance in markets where it is still small.
High Risk
Profitability Issues
The company is not yet GAAP profitable, and stock-based compensation is significant, raising concerns about sustainable earnings.
Medium
Financial Risks
Cloudflare disclosed 80 risk factors in its most recent earnings report, with the majority categorized under 'Finance & Corporate', indicating substantial financial uncertainties.
Medium
Market Competition
Cloudflare operates in competitive markets where it must prove dominance despite being relatively small, adding execution risk.
Lower
Operational Risks
The company faces general business risks described in its Annual Report, including uncertainties in forward-looking statements and performance metrics.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why NET Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated June 17, 2026
AI Edge Infrastructure
Cloudflare's AI infrastructure is uniquely positioned as AI inference shifts from centralized data centers to the edge, leveraging its 320-city network for proximity to users and devices.
Network Effects
The company manages 20% of global web traffic, creating strong network effects that enhance its service offerings and competitive moat.
Growth Trajectory
Cloudflare exhibits a strong growth trajectory with a stock price appreciation of approximately 83.36%, indicating robust market confidence.
Profitability Inflection
The company is approaching a profitability inflection point, signaling potential for sustained financial performance and investor returns.
Global Web Traffic Management
Cloudflare's ability to handle significant global web traffic underscores its scalability and reliability as a cloud services provider.
Developer Community Engagement
Thousands of developers use Cloudflare to simplify infrastructure complexity, highlighting its appeal and adoption within the tech community.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
NET Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$224.11
52W Range Position
55%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$158.83
+41.1% from the low
52-Week High
$276.81
-19.0% from the high
1 Month
+11.09%
3 Month
-0.66%
YTD
+14.3%
1 Year
+23.5%
3Y CAGR
+49.4%
5Y CAGR
+17.1%
10Y CAGR
+28.7%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
NET vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
187.1x
vs 30.3x median
+517% above peer median
Revenue Growth
+19.5%
vs +11.2% median
+74% above peer median
Net Margin
-3.7%
vs 2.0% median
-290% below peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
NET NET Cloudflare, Inc. | $79.2B | 187.1x | +19.5% | -3.7% | Buy | +2.2% |
FSL FSLY Fastly, Inc. | $2.8B | 55.0x | +16.0% | -15.8% | Hold | +30.9% |
AKA AKAM Akamai Technologies, Inc. | $18.2B | 18.6x | +11.2% | 10.2% | Hold | +26.7% |
BAN BAND Bandwidth Inc. | $1.6B | 28.6x | +11.1% | 2.0% | Buy | +16.8% |
ZS ZS Zscaler, Inc. | $20.2B | 30.3x | +10.8% | -2.4% | Buy | +54.8% |
PAN PANW Palo Alto Networks, Inc. | $196.1B | 76.3x | +12.3% | 7.9% | Buy | +12.9% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
FAQ
7 questionsNET Investor Questions
Common questions answered from live analyst data and company financials.
01Is Cloudflare, Inc. (NET) stock a buy or sell in 2026?
Cloudflare, Inc. (NET) is rated Buy by Wall Street analysts as of 2026. Of 40 analysts covering the stock, 28 rate it Buy or Strong Buy, 10 rate it Hold, and 2 rate it Sell or Strong Sell. The consensus 12-month price target is $229, implying +2.2% from the current price of $224. The bear case scenario is $5 and the bull case is $11.
02What is the NET stock price target for 2026?
The Wall Street consensus price target for NET is $229 based on 40 analyst estimates. The high-end target is $305 (+36.1% from today), and the low-end target is $136 (-39.3%). The base case model target is $8.
03Is Cloudflare, Inc. (NET) stock overvalued in 2026?
NET trades at 187.1x times forward earnings. The stock currently trades at a discount to the broader market. Based on current multiples versus the peer group, the relative model signals expensive versus peers. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for Cloudflare, Inc. (NET) stock in 2026?
The primary risks for NET in 2026 are: (1) Valuation Concerns — Cloudflare is trading at 20-25x forward revenue, which is expensive relative to near-term fundamentals and priced for dominance in markets where it is still small. (2) Profitability Issues — The company is not yet GAAP profitable, and stock-based compensation is significant, raising concerns about sustainable earnings. (3) Financial Risks — Cloudflare disclosed 80 risk factors in its most recent earnings report, with the majority categorized under 'Finance & Corporate', indicating substantial financial uncertainties. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is Cloudflare, Inc.'s revenue and earnings forecast?
Analyst consensus estimates NET will report consensus revenue of $2.8B (+19.5% year-over-year) and EPS of $0.46 (+288.3% year-over-year) for the upcoming fiscal year. The following year, analysts project $3.4B in revenue.
06When does Cloudflare, Inc. (NET) report its next earnings?
Cloudflare, Inc. is expected to report its next earnings on approximately 2026-07-30. Consensus expects EPS of $0.26 and revenue of $665M. Over recent quarters, NET has beaten EPS estimates 92% of the time.
07How much free cash flow does Cloudflare, Inc. generate?
Cloudflare, Inc. (NET) generated $379M in free cash flow over the trailing twelve months — a free cash flow margin of 16.3%. NET returns capital to shareholders through and share repurchases ($0 TTM).