Scotiabank Has Weak Outlook for Cloudflare FY2026 Earnings

Cloudflare, Inc. (NYSE:NET) – Analysts at Scotiabank lowered their FY2026 EPS estimates for shares of Cloudflare in a report released on Wednesday, February 11th. Scotiabank analyst P. Colville now expects that the company will earn ($0.12) per share for the year, down from their previous estimate of $0.07. Scotiabank currently has a “Sector Perform” rating and a $225.00 target price 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 released its quarterly earnings results on Tuesday, February 10th. The company reported $0.28 EPS for the quarter, topping the consensus estimate of $0.27 by $0.01. The company had revenue of $614.51 million during the quarter, compared to analyst estimates of $591.67 million. Cloudflare had a negative return on equity of 7.40% and a negative net margin of 4.72%.The firm’s revenue was up 33.6% on a year-over-year basis. During the same quarter last year, the business posted $0.19 earnings per share.

NET has been the topic of a number of other research reports. Citizens Jmp boosted their price objective on shares of Cloudflare from $250.00 to $270.00 and gave the company a “market outperform” rating in a research report on Friday, October 31st. UBS Group reissued a “neutral” rating and issued a $220.00 price objective on shares of Cloudflare in a research report on Wednesday. Argus boosted their target price on Cloudflare from $238.00 to $265.00 and gave the company a “buy” rating in a research report on Monday, November 10th. Mizuho cut their target price on Cloudflare from $280.00 to $255.00 and set an “outperform” rating on the stock in a research note on Wednesday, January 21st. Finally, Citigroup raised their price target on Cloudflare from $260.00 to $265.00 and gave the stock a “buy” rating in a research note on Thursday. One analyst has rated the stock with a Strong Buy rating, twenty have issued a Buy rating, seven have assigned a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $232.11.

Cloudflare Stock Performance

NYSE:NET opened at $196.00 on Monday. The stock’s fifty day moving average is $190.27 and its 200 day moving average is $204.83. Cloudflare has a fifty-two week low of $89.42 and a fifty-two week high of $260.00. The firm has a market capitalization of $68.66 billion, a PE ratio of -675.84 and a beta of 1.97. The company has a debt-to-equity ratio of 1.46, a quick ratio of 2.04 and a current ratio of 2.04.

Insider Transactions at Cloudflare

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

Institutional Investors Weigh In On Cloudflare

Large investors have recently made changes to their positions in the stock. Kestra Advisory Services LLC lifted its position in Cloudflare by 0.9% during the 4th quarter. Kestra Advisory Services LLC now owns 26,057 shares of the company’s stock worth $5,137,000 after acquiring an additional 228 shares during the period. Cordoba Advisory Partners LLC purchased a new stake in Cloudflare in the fourth quarter valued at approximately $289,000. Transamerica Financial Advisors LLC increased its holdings in Cloudflare by 162.4% in the 4th quarter. Transamerica Financial Advisors LLC now owns 265 shares of the company’s stock worth $52,000 after buying an additional 164 shares during the period. Marshall Wace LLP raised its position in Cloudflare by 31.1% during the 4th quarter. Marshall Wace LLP now owns 690,747 shares of the company’s stock worth $136,181,000 after buying an additional 163,966 shares during the last quarter. Finally, Bridgewater Associates LP boosted its holdings in shares of Cloudflare by 172.4% in the 4th quarter. Bridgewater Associates LP now owns 40,897 shares of the company’s stock valued at $8,063,000 after acquiring an additional 25,882 shares during the last quarter. 82.68% of the stock is owned by hedge funds and other institutional investors.

Key Headlines 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.