Cloudflare surges ~20% premarket on Q3 beat: revenue +39% to $782.5M, guidance raised, GAAP profitability pulled forward to Q4 (Nov 6)
What happened
Cloudflare (NET) reported third-quarter 2026 results after Thursday's close that beat expectations across the board, sending shares up more than 20% in Friday premarket trading. Revenue rose 39% year over year to $782.5 million — the fastest quarterly growth in nearly four years and about 6% above the ~$737 million consensus — pushing annualized revenue past $3 billion. Non-GAAP EPS was $0.38 versus $0.34 expected, non-GAAP operating margin hit a record 17.5%, and current remaining performance obligations grew 37%. Management raised guidance for the third time this year: Q4 revenue of $845-846 million (vs ~$796 million consensus), full-year revenue of $2.963-2.964 billion, full-year non-GAAP EPS of $1.35 (vs $1.27 expected), and — most notably — GAAP profitability now expected as early as Q4 2026, pulled forward from a prior end-of-2028 target.
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Who’s affected
- Cloudflare (NET) — surged more than 20% in Friday premarket trading, bucking Thursday's AI selloff; the beat-and-raise is a direct read on enterprise AI/security spending
- AI infrastructure and cybersecurity peers — a demand signal that enterprise spending on AI-era network security is accelerating despite the broader AI-valuation rout; contrasts with the chip/hardware selloff