NET
Cloudflare, Inc.

Cloudflare, Inc.NET

Technology · Software - Infrastructure
268.75USD
+9.91%
Nov 08, 2026
NET overview ready
Global Cloud-Edge Security and Performance Platform for Enterprises
Cloudflare operates a global cloud network that delivers application and API protection, DDoS mitigation, bot management, zero-trust access, secure web and network connectivity, traffic performance, and developer services.
Theme not measured
Edge Cloud / CDN has no leadership state this session.
Price structure is giving way
Longer-term context reads near trend floor, with a near-term setup of pullback recovery.
Demanding valuation
The price embeds expectations that run ahead of what comparable businesses command.
Fundamentals under pressure
Free cash flow yield is weak.
Primary risk
Intense competition from other cloud security and infrastructure providers.
Market Nov 6Filing Sep 30Price action Nov 7Research Oct 16

Conviction Level

Theme Momentum has no canonical measurement for this company — a research-profile dimension, not an input to this score.

PriceAction6.0BusinessPerformance5.0BusinessQuality4.9Valuation0.3ThemeMomentum—Mixed — Revenue growth has accelerated across 3 consecutive quarters, rising from +34% to +39% year over year. Diluted EPS was -$0.10 against $0.00 a year earlier. — From filed financial statements. Describes the recent trajectory of the business, not the stock. 20 of the 100 Conviction points.

Conviction uses Price Action, Business Performance, Business Quality, Valuation. Theme Momentum is research context, not an input.

Theme momentumPrimary theme · group context, not entry timing
Edge Cloud / CDN — Edge Cloud / CDN is tracked (3–4 priced members) — too few for a leadership state
Its economic family, Software, reads Weakening (+6.0pp vs SPY) — the family’s reading, not this theme’s.
Price
Loading price history…

Price Action

Price structure is giving way
Longer-term context reads near trend floor, with a near-term setup of pullback recovery.
EntryConstructive

Structure is constructive, but price remains well extended from the long-term weekly base and the earlier reset has already been partly recovered — a workable rather than ideal entry location.

Key Financials

Market Cap
$95.3B
Avg Volume (60D)
3.5M
60 sessions
Revenue Growth YoY
+29.8%
FY2025 vs FY2024
Gross Margin
+71.9%
Trailing twelve months
Operating Margin
-14.1%
Trailing twelve months
Free Cash Flow Yield
+0.4%
Distance from 200DMA
+7.4%
P/E
N/M
EV / Sales
34.6x
Market metrics as of Nov 6, 2026
Financial results for the period ended Sep 30, 2026
Filed balance-sheet data as of Sep 30, 2026

Business Performance

Mixed

Revenue growth has accelerated across 3 consecutive quarters, rising from +34% to +39% year over year. Diluted EPS was -$0.10 against $0.00 a year earlier.

Latest reported: Q3 FY2026, ended Sep 30
Revenue growthAccelerating
+39%
$783M in Q3 FY2026 · YoY
YoY growth, last 4 quarters
  1. +34%
  2. +34%
  3. +36%
  4. +39%
Earnings growthDeclining
-$0.10
Diluted EPS -$0.10 vs $0.00 a year earlier · GAAP
Too few comparable EPS quarters: a loss or a turn to profit has no meaningful percentage.
Operating marginContracting
-8.7%
-2.0 pp YoY · gross margin 71.2% (-2.8 pp)

Business Quality

4.9 / 10

How well the business earns on its assets, converts earnings to cash and funds itself — read from its SEC filings.

Fundamentals & Valuation

Two of the three valuation perspectives say expensive; own history is the dissenting view.
Cloudflare, Inc. has an Expensive valuation stance because the price embeds expectations that run ahead of what comparable businesses command. It trades at 34.6x revenue, which requires sustained delivery to be justified.

What changed

  • NET rose 9.9% in one session
    NET closed +9.9% while the broad market was close to flat (+0.3%).
    2026-11-06

Company Research

Thesis
Cloudflare operates a global cloud network that delivers application and API protection, DDoS mitigation, bot management, zero-trust access, secure web and network connectivity, traffic performance, and developer services.
Opportunity
Moderate opportunity
Enterprise spending to protect internet-facing applications, APIs, networks, and user access through globally distributed cloud-edge security and connectivity platforms, while replacing fragmented hardware and point-security stacks.
Key risk
Intense competition from other cloud security and infrastructure providers.

Economic classification

Loading the economic classification…

Business & Markets

Technology · Software - Infrastructure
What they do

Cloudflare, Inc. operates a global cloud services platform that delivers security, performance, and reliability solutions by protecting and accelerating internet applications, APIs, and networks through a distributed cloud-edge network.

How it earns

The company primarily generates revenue through subscription-based services for its cloud security and performance offerings.

Products & services
Web application firewall
Bot management
Distributed denial of service (DDoS) mitigation
API security
SSL/TLS encryption
Zero-trust access
Traffic performance optimization
Developer services
Customers & end markets
Enterprises with internet-facing applications
Businesses requiring cloud security and network performance
Organizations adopting zero-trust security models
Market position

Leader in cloud-edge delivered application and network security services.

Demand drivers
Medium cyclicality

Spending on cybersecurity and cloud infrastructure tends to be steady but can be influenced by broader IT budget cycles and economic conditions.

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