Cloudflare (NET) Tops Q2 Earnings and Revenue Estimates

Company Performance - Cloudflare reported quarterly earnings of $0.21 per share, exceeding the Zacks Consensus Estimate of $0.18 per share, and showing an increase from $0.20 per share a year ago, representing an earnings surprise of +16.67% [1] - The company achieved revenues of $512.32 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.32%, and up from $401 million in the same quarter last year [2] - Over the last four quarters, Cloudflare has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Stock Performance - Cloudflare shares have increased approximately 86.5% since the beginning of the year, significantly outperforming the S&P 500's gain of 8.2% [3] - The current consensus EPS estimate for the upcoming quarter is $0.21 on revenues of $537.72 million, and for the current fiscal year, it is $0.79 on revenues of $2.09 billion [7] Industry Outlook - The Internet - Software industry, to which Cloudflare belongs, is currently ranked in the top 30% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5]