Cloudflare to Post Q3 Earnings: What's in Store for the Stock?

Cloudflare NET is scheduled to report third-quarter 2025 results on Oct. 30, 2025.

Cloudflare anticipates revenues between $543.5 million and $544.5 million for third-quarter 2025. The Zacks Consensus Estimate for NET’s third-quarter revenues is pegged at $544.1 million, indicating year-over-year growth of 26.5%.

For the third quarter, the company expects non-GAAP earnings of 23 cents per share. The Zacks Consensus Estimate for NET’s third-quarter earnings is pegged at 23 cents per share, suggesting growth of 15% from the same quarter last year. The consensus mark for earnings has remained unchanged over the past 60 days.

Cloudflare’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, while matching the same on one occasion, the average surprise being 8.34%.

Factors Likely to Influence Cloudflare’s Q3 Results

Cloudflare’s third-quarter results are likely to benefit from enterprises transitioning from traditional firewall and VPN-based cybersecurity solutions to the zero-trust approach. The company’s performance is expected to have benefited from a rise in the number of high-value contracts.

Cloudflare’s revenues are expected to have been boosted by its aggressive global expansion outside the United States. It is worth mentioning that the company generated approximately 50% of its 2024 revenues outside the United States. In the second quarter of 2025, Cloudflare reported that it had relied more on sales channels like PLG; but now, as the enterprise sales motion is clicking DDoS, WAF, and DNS, Cloudflare is set to benefit from it.

A diversified clientele is likely to have boosted Cloudflare’s third-quarter top line. Cloudflare had 265,929 paying customers at the end of the second quarter, up 27% year over year. It added 185 new customers during the quarter who contributed more than $100,000 in annual revenues. The total count of such customers reached 3,712 at the end of the quarter. This trend is expected to have continued in the to-be-reported quarter as well, backed by the increasing demand for NET’s cloud-based offerings amid the continuing digitalization trend.

Furthermore, growth in Cloudflare’s Workers AI inference and AI Gateway requests might have contributed to the top line in the to-be-reported quarter. Rising adoption of its Model Context Protocol server by a growing number of companies is also a tailwind.

However, amid the ongoing geopolitical and macroeconomic challenges, Cloudflare is facing difficulties in closing large deals in the pipeline, affecting its revenue recognition. These challenges stem from customer cautiousness in their IT spending and vendor onboarding due to recent policy measures of the United States. This is expected to have negatively impacted the company’s top-line growth in the to-be-reported quarter.

Earnings Whispers for Cloudflare

Our proven model does not conclusively predict an earnings beat for Cloudflare this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.

Though Cloudflare carries a Zacks Rank #3, it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks to Consider

Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

Reddit Inc. RDDT has an Earnings ESP of +20.17% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

It is set to report third-quarter 2025 results on Oct. 30. The Zacks Consensus Estimate for RDDT’s third-quarter earnings is pegged at 52 cents per share, up by a cent over the past 60 days, indicating an increase of 225% from the year-ago quarter’s reported figure. 

Meta Platforms META has an Earnings ESP of +3.03% and sports a Zacks Rank #2 at present.

Meta Platforms is slated to report third-quarter 2025 results on Oct. 29. The Zacks Consensus Estimate for META’s third-quarter 2025 earnings is pegged at $6.61 per share, up by 3 cents over the past seven days, indicating a rise of 9.6% from the year-ago quarter’s reported figure.

Cognizant Technology Solutions CTSH has an Earnings ESP of +1.54% and carries a Zacks Rank #2 at present.
It is set to report third-quarter 2025 results on Oct. 29. The Zacks Consensus Estimate for NXPI’s third-quarter earnings is pegged at $1.29 per share, unchanged over the past 60 days, indicating an increase of 3.2% from the year-ago quarter’s reported figure.

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This article originally published on Zacks Investment Research (zacks.com).

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