Abstract
Cloudflare, Inc. will report fiscal fourth-quarter results on February 10, 2026 Post Market, with investors watching revenue growth reacceleration, margins, and profitability guidance amid rising large-customer wins and robust demand for security and developer services.Market Forecast
Consensus heading into the February 10, 2026 report points to revenue of $591.28 million for the current quarter, implying a year-over-year increase of 30.79%, along with forecast gross profit margin near the prior quarter’s 73.97%, a forecast net profit margin tracking toward breakeven, and adjusted EPS estimated at $0.27, up 49.70% year over year. Forecast EBIT is $84.32 million, suggesting 47.08% year-over-year growth, as operating leverage benefits from scale in security and zero-trust workloads. Management previously guided fourth-quarter revenue to a range of $588.50 million to $589.50 million and highlighted momentum in large-deal activity and robust remaining performance obligations.Cloudflare’s main businesses remain direct customers and channel partners, with direct customers contributing $412.17 million and channel partners contributing $149.86 million in the last reported quarter; growth is led by enterprise security, networking, and zero trust adoption. The most promising segment is enterprise-driven direct customers, supported by accelerating RPO growth and upsell into zero trust and application security, underpinning the revenue outlook with year-over-year growth over 30.00% in the latest quarter.
Last Quarter Review
Cloudflare, Inc. delivered the previous quarter with revenue of $562.03 million, a gross profit margin of 73.97%, GAAP net profit attributable to shareholders of -$1.29 million with a net profit margin of -0.23%, and adjusted EPS of $0.27, representing 35.00% year-over-year growth. A key highlight was accelerating top-line growth to 31.00% year over year, alongside 43.00% growth in remaining performance obligations and 30.00% growth in current RPO, signaling sustained demand and sales execution. By business mix, direct customers generated $412.17 million and channel partners $149.86 million, with enterprise momentum and large-customer additions driving the majority of incremental dollars year over year.Current Quarter Outlook (with major analytical insights)
Core revenue engine: direct enterprise customers and Zero Trust attach
Cloudflare’s core revenue engine is direct enterprise customers, which delivered $412.17 million last quarter and reflects the concentration of spending in application security, network services, and Zero Trust. Management’s implied guidance and the forecast revenue of $591.28 million point to continued expansion from higher take rates on consolidated platforms and cross-sell into SASE/Zero Trust, with demand buoyed by consolidation trends as CIOs streamline vendor footprints. The attach of Zero Trust to incumbent application security, bot management, and content delivery solutions remains a structural driver, enhancing net expansion rates and underpinning the projected 30.79% year-over-year revenue growth this quarter. Execution within the direct channel is also benefiting from salesforce productivity and deal cycle normalization relative to the prior year, which supports both volume and average deal size.Most promising growth vector: security platform and developer services
Security-led growth—spanning application security, DDoS mitigation, bot management, and Zero Trust network access—continues to represent the highest-velocity opportunity, reinforced by the company’s data points on RPO acceleration and large-deal wins. As Zero Trust matures, its incremental contribution to both revenue and gross profit is outpacing legacy networking, given premium feature adoption and higher price points. In parallel, developer-centric products, including edge compute and Workers-based services, are enlarging the total addressable workload, creating high-margin, usage-based revenue streams that can scale with customer adoption curves. The mix shift toward security and programmable edge should be supportive of gross margin stability near 73.97% and of EBIT leverage toward the $84.32 million estimate, provided utilization and network efficiency initiatives hold.Key stock-price drivers this quarter: guidance quality, RPO trajectory, and margin discipline
The most important swing factors for the stock into the print and guidance period are the quality and cadence of fiscal Q1 2026 revenue and RPO guidance, the durability of enterprise demand reflected in large-deal signings, and margin discipline. Investors will focus on whether management’s commentary implies sustained 30.00%+ growth into 2026, or whether macro or deal scrutiny creates a moderation from the Q4 run-rate. On profitability, the Street’s adjusted EPS estimate of $0.27 and EBIT of $84.32 million require steady gross margin, improving sales productivity, and disciplined operating expense growth; any deviations, especially from network cost inflation or elevated go-to-market investment, could compress the forecast net profit margin that is currently trending toward breakeven. Cash flow quality, billings conversion, and the balance between usage-based and subscription revenue will also color sentiment, as these factors can impact both near-term operating leverage and full-year guidance credibility.Analyst Opinions
Recent analyst and market commentary over the past six months has skewed bullish following the company’s last earnings update, with a majority indicating confidence in revenue acceleration and operating leverage into the February 10, 2026 report. The last quarter’s beat—revenue of $562.03 million against expectations of $544.82 million and adjusted EPS of $0.27 against $0.23—has driven positive revisions and favorable views on the sustainability of growth above 30.00%. Several institutions emphasize the significance of 43.00% RPO growth and a 30.00% current RPO increase as leading indicators for bookings strength and multi-quarter visibility, supporting the view that guidance may prove conservative.The bullish camp argues that the company’s positioning across application security and Zero Trust, coupled with a growing enterprise footprint and a vibrant channel contribution of $149.86 million last quarter, offers both breadth and depth for continued expansion. Commentary highlights that operational improvements are visible in EBIT performance—$85.94 million last quarter versus an estimate of $76.30 million—and that cost discipline is creating a cushion for potential network expenditure variability. On valuation, bulls acknowledge premium multiples but contend that accelerating top-line and rising profitability justify the setup, particularly if management’s Q1 revenue and full-year outlook extend the reacceleration narrative.
A minority of cautious views is primarily concerned with potential elongation of sales cycles in certain verticals and the sensitivity of usage-based workloads to macro spending adjustments, which could impart volatility to billings and RPO metrics. However, the preponderance of published previews and post-Q3 analysis remains on the constructive side, anticipating a solid print, stable or gently improving gross margins near 73.97%, and guidance that sustains a 30.00%+ growth framework. Given the weight of positive commentary versus reservations, the majority stance is bullish, and the market will be most responsive to confirmation of multi-quarter demand durability and prudent margin expansion in the forthcoming update.
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