Cloudflare stock gets lift as Q3 growth raises 2026 outlook

Cloudflare reported strong third-quarter growth on Thursday, November 5, 2026, and raised its full-year outlook. In its third-quarter results release, the connectivity and security company said revenue rose 39 percent year over year to 782.5 million US dollars.

Growth extended beyond the headline number. Management pointed to continued demand for its developer platform, increasing workloads across its network and momentum among its largest customer groups. Annualized revenue moved above 3 billion US dollars, according to management's earnings-call comments.

Revenue Growth Meets Earlier Profitability

Non-GAAP operating income reached 137.1 million US dollars, up from 85.9 million US dollars a year earlier. The adjusted operating margin expanded to 17.5 percent from 15.3 percent, while non-GAAP net income rose to 143.7 million US dollars, or 0.38 US dollars per diluted share, from 102.6 million US dollars, or 0.27 US dollars.

The statutory picture remained weaker. GAAP operating loss was 67.9 million US dollars, compared with a loss of 37.5 million US dollars in the prior-year quarter. GAAP net loss widened to 34.1 million US dollars from 1.3 million US dollars. Gross margin also eased to 72.4 percent from 75.3 percent, although it remained within Cloudflare's stated long-term range.

Cloudflare expects fourth-quarter revenue of 845.0 million to 846.0 million US dollars and adjusted earnings of 0.43 US dollars per diluted share. Crucially for investors, management now expects the company to reach GAAP profitability in the fourth quarter, earlier than the previous target of achieving that milestone by 2028 at the latest.

Higher Full-Year Targets

For fiscal 2026, the company raised its revenue outlook to 2.963 billion to 2.964 billion US dollars. It also projects non-GAAP operating income of 462 million to 463 million US dollars and adjusted diluted earnings of 1.35 US dollars per share. The forecast implies that management expects the elevated growth pace to continue into the final quarter, while the profitability milestone provides a new test for execution.

Cloudflare stock traded at 288.70 euros on Lang & Schwarz at 4:36 p.m. CET on Wednesday, November 11, 2026, 5.87 percent above the Xetra close of 272.70 euros on Tuesday, November 10. The quote came before the subsequent Xetra session had closed, so the comparison uses the preceding completed Xetra session. The quote and Xetra reference are reflected in the market quote.

US technology stocks remain part of the broader market tracked by the S&P 500.

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