Cloudflare to Post Q4 Earnings: What's in Store for the Stock?

Cloudflare NET is scheduled to report fourth-quarter 2025 results on Feb. 10, 2026. NET anticipates revenues between $588.5 million and $589.5 million for fourth-quarter 2025. The Zacks Consensus Estimate for NET’s revenues is pegged at $590.2 million, indicating year-over-year growth of 28.3%.

For the fourth quarter, the company expects non-GAAP earnings of 27 cents per share. The Zacks Consensus Estimate for NET’s fourth-quarter earnings is pegged at 27 cents per share, suggesting growth of 42.1% from the same quarter last year. The consensus mark for earnings has remained unchanged over the past 90 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 9.91%.

Factors Likely to Influence Cloudflare’s Q4 Results

Cloudflare’s fourth-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, Inc. Price, Consensus and EPS Surprise

Cloudflare, Inc. price-consensus-eps-surprise-chart | Cloudflare, Inc. Quote

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. A diversified clientele is likely to have boosted Cloudflare’s fourth-quarter top line. Cloudflare had 295,552 paying customers at the end of the third quarter, up 33.4% year over year.

NET ended its third quarter 2025 with 4,009 large customers contributing $100,000 in annual revenues, with the number of such customers increasing 23% year over year. It added 297 such new customers in the third quarter of 2026 itself. 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.

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 -1.62%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks With Favorable Combination

Here are some stocks you may want to consider in the broader Zacks Computer and Technology sector, as our model shows that these have the right combination of elements to post an earnings beat:

IPG Photonics IPGP has an Earnings ESP of +15.08% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

IPG Photonics shares have surged 22.1% in the trailing six-month period. IPG Photonics is set to report fourth-quarter 2025 results on Feb. 12. 
Lattice Semiconductor LSCC has an Earnings ESP of +3.67% and a Zacks Rank #2 at present. Shares of Lattice Semiconductor have gained 70.1% in the trailing six-month period. Lattice Semiconductor is set to report fourth-quarter 2025 results on Feb. 10.

Applied Materials AMAT has an Earnings ESP of +2.99% and a Zacks Rank #2 at present. Shares of AMAT have gained 66% in the trailing six-month period. Applied Materials is slated to report first-quarter fiscal 2026 results on Feb. 12.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research