Cloudflare (NET) Reports Earnings Thursday Amid Cybersecurity Swoon

Cloudflare (NET) will report earnings in Thursday’s postmarket session as the wider cybersecurity sector struggles to regain its footing after significant declines during October.

Analysts are looking for earnings-per-share of $0.35 against $0.27 last year (a 29.6% increase), and for revenue of $734.31M compared to $562.03M during the same time frame (a 30.6% increase).

Cloudflare’s services are essentially a protective barrier between a website and the rest of the internet that can stop cyberattacks, guard private data, and increase website access speed. The company stands out for its massive size and scale but also has the unusual competitive distinction of offering a free tier of services.

Here are three things to think about as Cloudflare reports earnings.

Cybersecurity & AI Connections: Cybersecurity has been a standout area of the tech sector during 2026, with the First Trust NASDAQ Cybersecurity ETF (CIBR) up more than 36% year-to-date. However, this comes after a 12% slide from the all-time highs of 110.68 on Oct. 12 amid a turbulent month. Last month, the group, which also includes Okta (OKTA), CrowdStrike (CRWD), and Palo Alto Networks (PANW), faltered in tandem with other high-flying names in the semiconductor and artificial intelligence hyperscaler arenas. The rise of AI means malicious actors have extremely sophisticated tools at their disposal, which means cybersecurity and AI are becoming increasingly intertwined as corporations need greater defenses against these new and powerful potential attacks.

Analysts: Recent analyst coverage on Cloudflare has been mixed. JPMorgan on Nov. 3 upgraded Cloudflare to Overweight from Neutral with an unchanged price target of $350, saying the move comes after the stock’s sharp pullback and that they believe it could accelerate revenue growth. Bernstein also expressed a somewhat more optimistic outlook on Oct. 29, raising its price target to $245 from $181 and keeping its Market Perform rating – however, this new target is still below current share prices. Meanwhile, Jefferies on Nov. 2 lowered its target to $320 from $350 and kept its Hold rating. The firm said Wall Street earnings expectations create a “high bar” to clear but that it could be feasible.

Technicals & Options Market: Cloudflare’s price exhibits a downward trajectory connecting its all-time high of $370.35 on Oct. 6 and a subsequent high at $337 on Oct. 27. Price recently breached a repeated floor near the $274 level from late August to early September, with potential support near $250 based on a pre-gap high from Jul. 6 and a subsequent low that filled it on Jul. 28 and then rallied. As for the options market, Friday's weekly Nov. 6 expiration shows a potential expected move of +/-$33.4 (13.1%). Meanwhile, the monthly Nov. 20 expiration gives a possible expected move range of +/-$45.0 (17.6%), which would give a lower boundary of around $211 that would roughly align with a notable low point from Jun. 22.

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