Cloudflare to Post Q3 Earnings: What's in Store for the Stock?

Core Insights - Cloudflare (NET) is set to report its third-quarter 2025 results on October 30, 2025, with anticipated revenues between $543.5 million and $544.5 million, reflecting a year-over-year growth of 26.5% [1][10] - The company expects non-GAAP earnings of 23 cents per share for the third quarter, indicating a 15% increase from the same quarter last year [2][10] - Cloudflare's performance is likely to be influenced by the shift towards zero-trust cybersecurity solutions, an increase in high-value contracts, and growth in AI-related services [3][6][10] Revenue Drivers - The anticipated revenue growth is supported by Cloudflare's aggressive global expansion, with approximately 50% of its 2024 revenues generated outside the United States [4] - A diversified customer base has contributed positively, with 265,929 paying customers at the end of the second quarter, marking a 27% year-over-year increase [5] - The rise in high-value clients, particularly those contributing over $100,000 in annual revenues, is expected to continue benefiting the company's top line [5] Challenges - Cloudflare faces challenges in closing large deals due to geopolitical and macroeconomic factors, which may negatively impact revenue recognition [7] - Customer caution in IT spending and vendor onboarding, influenced by recent U.S. policy measures, is also a concern for the company's growth [7] Earnings Outlook - The current model does not predict a definitive earnings beat for Cloudflare, as it holds a Zacks Rank 3 and an Earnings ESP of 0.00% [8]