Cloudflare (NET) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $782.5M, up 39% YoY; annualized revenue exceeded $3B, with growth at its fastest pace in nearly four years.

• Non-GAAP operating income was $137.1M at a 17.5% margin; free cash flow was $82.1M.

• More than 5,000 customers paid over $100,000 annually, up 25% YoY; dollar-based net retention was 122%.

Financial highlights

• Q3 GAAP operating loss was $67.9M versus $37.5M, and net loss was $34.1M versus $1.3M; diluted loss per share was $0.10.

• Non-GAAP net income was $143.7M, or $0.38 per diluted share, versus $102.6M and $0.27 a year earlier.

• Operating cash flow was $215.4M versus $167.1M; free cash flow was $82.1M versus $75.0M, with FCF margin of 10% versus 13%.

• Nine-month revenue rose 36% YoY to $2.118B; gross profit was $1.512B.

Outlook and guidance

• Q4 revenue guidance is $845M–$846M, up 38% YoY; non-GAAP operating income is $156M–$157M and EPS is $0.43.

• Q4 GAAP profitability is expected, earlier than the prior Investor Day outlook of achieving it by 2028 at the latest.

• FY26 revenue guidance is $2.963B–$2.964B, up 37% YoY; non-GAAP operating income is $462M–$463M and EPS is $1.35.

• Q4 and FY26 guidance assumes a 20% effective tax rate, with ~379M and ~376M diluted shares, respectively; FY26 network CapEx is expected at 14%–15% of revenue.