Cloudflare, Inc.

Q2 FY26IT Services

Cloudflare, Inc. Q2 FY26 Results — Earnings Call Analysis

Q2 FY26 earnings call: what management guided on revenue, margins and order book.

Price₹228

Market cap₹80.6K Cr

P/E142.6

Updated29 May 2026

Read4 min read

What the Q2 FY26 call signalled

3 of 3 strong

RevenueGood growth

MarginMargins up

CapexCapex planned

The short version

- Revenue growth expected at around 30% year-over-year for full year 2026, with Q2 revenue guidance at $664-$665 million. - Q2 2026 revenue expected between $664 million and $665 million, a 30% YoY increase.

From Cloudflare, Inc.'s Q2 FY26 earnings-call transcript · updated 29 May 2026.

Revenue & Sales Performance

Good growth

Revenue growth expected at around 30% year-over-year for full year 2026, with Q2 revenue guidance at $664-$665 million.
Continued acceleration in quota-carrying sales force capacity planned for 2026 to support market opportunity.
Strong sales productivity gains, with the fastest growth in hiring sales capacity since 2023.
Increasing number of large customers driving growth; added record number of $5M+ customers in Q1.
Expanding channel and partner involvement, with partners contributing 30% of revenue and expected to remain important.
Growth fueled by AI and agentic workloads, with hundreds of billions of agentic requests monthly driving Act 1 revenue.
Expansion in self-service and zero trust categories, with increasing adoption of AI and Workers developer platform.

2 more points management made on revenue & sales performance

Profitability & Margins

Q2 2026 revenue expected between $664 million and $665 million, a 30% YoY increase.
Q2 operating income forecasted between $90 million and $91 million.
Effective tax rate for Q2 anticipated at 21.5%.
Q2 diluted net income per share (EPS) expected to be $0.27.
Full-year 2026 revenue projected between $2.805 billion and $2.817 billion, representing 30% YoY growth at midpoint.
Full-year operating income guidance set between $418 million and $421 million.
Full-year effective tax rate expected at 20.5%.
Full-year diluted EPS estimated between $1.19 and $1.20.

2 more points management made on profitability & margins

See what Cloudflare, Inc. said on profitability & margins — free account, 30 seconds.

Capital Expenditure Plans

Capex planned

Network CapEx was 9% of revenue in Q1 2026, with expectations of 14%-15% of revenue for full year 2026.
Cloudflare plans to continue investing in its network capacity to support growing AI and agentic workloads.
Capital investments focus on improving GPU and CPU utilization to efficiently serve AI inference demand across their distributed network.
The company aims to grow sales capacity by reallocating spend within existing budgets rather than increasing total spend, enhancing productivity.
Restructuring charges of $140-$150 million in 2026 reflect shifting investments to an AI-first operating model, emphasizing efficiency and innovation.

2 more points management made on capital expenditure plans

Fundraising & Capital Structure

There is no mention of any current or planned new fundraising through debt or equity in the provided transcript.
The company ended Q1 2026 with $4.2 billion in cash, cash equivalents, and available-for-sale securities, indicating strong liquidity.
Management emphasized focus on disciplined execution, durable growth, and long-term focus without indicating plans to raise capital.

2 more points management made on fundraising & capital structure

See what Cloudflare, Inc. said on fundraising & capital structure — free account, 30 seconds.

Order Book & Pipeline

Remaining Performance Obligations (RPO) stood at $2.543 billion.
RPO increased 2% sequentially and 36% year-over-year.
Current RPO accounted for 64% of total RPO with a 34% year-over-year increase.
Bookings from new customers grew at the highest rate since 2023.
New pipeline generation increased sequentially at the fastest pace in 5 years, surpassing planned targets more than any other first quarter since 2021.

2 more points management made on order book & pipeline

Others in IT Services this season

GoDaddy Inc. (Q2 FY26)
GoDaddy Inc. Q2 FY26 quarterly results analysis. Reaffirmed full year 2026 revenue guidance of $5.195 billion to $5.275 billion, representing 6% growth at midpo
Applied Digital Corporation (Q2 FY26)
Applied Digital Corporation Q2 FY26 quarterly results analysis. Revenues expected to ramp significantly over the next 12 months as two 150-megawatt buildings co
DigitalOcean Holdings, Inc. (Q2 FY26)
DigitalOcean Holdings, Inc. Q2 FY26 quarterly results analysis. 2026 revenue expected to be $1.13B to $1.145B, representing 25% to 27% YoY growth. Market Cap $1
Akamai Technologies, Inc. (Q2 FY26)
Akamai Technologies, Inc. Q2 FY26 quarterly results analysis. **Cloud Infrastructure Services (CIS):** Expected to grow at least 50% year-over-year in constant

Compare:vs International Business Machines Corporation vs Shopify Inc.vs Accenture plc

🔎 Who's planning the most growth?

Companies ranked by management's own guidance — revenue, margins, capex and order book, from every earnings call in India.

See rankings →

Frequently Asked Questions

What were Cloudflare, Inc. Q2 FY26 results?

What is Cloudflare, Inc. share price analysis?

Cloudflare, Inc. currently shows a moderate growth signal based on ranking data. The stock trades at a P/E of 142.6 with a market cap of $80,629. Investors should review the full earnings analysis for detailed insights.

Is Cloudflare, Inc. planning capital expenditure?

- Network CapEx was 9% of revenue in Q1 2026, with expectations of 14%-15% of revenue for full year 2026.

Keep Cloudflare, Inc. on your radar — track it to get its next earnings analysis in your feed.

This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.