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]

Company Performance - Cloudflare's stock closed at $190.55, down 3.65% from the previous session, underperforming the S&P 500's gain of 0.06% [1] - Over the past month, Cloudflare shares increased by 7.55%, lagging behind the Computer and Technology sector's gain of 9.6% but outperforming the S&P 500's gain of 5.88% [1] Upcoming Earnings Report - Cloudflare is set to release its earnings on July 31, 2025, with an expected EPS of $0.18, reflecting a 10% decrease from the prior-year quarter [2] - The consensus estimate for quarterly revenue is $500.72 million, which represents a 24.87% increase from the same period last year [2] Fiscal Year Projections - For the entire fiscal year, earnings are projected at $0.79 per share, with revenue expected to reach $2.09 billion, indicating increases of 5.33% and 25.38% respectively from the prior year [3] Analyst Estimates and Market Sentiment - Recent adjustments to analyst estimates for Cloudflare are crucial as they reflect short-term business trends, with positive revisions indicating a favorable outlook on business health and profitability [4] - The Zacks Rank system, which incorporates estimate changes, currently ranks Cloudflare as 5 (Strong Sell), suggesting a negative sentiment among analysts [6] Valuation Metrics - Cloudflare's Forward P/E ratio stands at 249.6, significantly higher than the industry average of 29.18 [6] - The company has a PEG ratio of 10.15, compared to the Internet - Software industry's average PEG ratio of 2.18 [7] Industry Context - The Internet - Software industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 77, placing it in the top 32% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1, highlighting the importance of industry strength in investment decisions [8]

Company Performance - Cloudflare's stock increased by 2.55% to $183.87, outperforming the S&P 500's daily gain of 0.96% [1] - Prior to the latest trading session, Cloudflare shares had gained 13.45%, significantly exceeding the Computer and Technology sector's gain of 2.53% and the S&P 500's gain of 0.5% [1] Earnings Expectations - The upcoming earnings report is expected to show an EPS of $0.18, which is a 10% decrease from the same quarter last year [2] - Revenue is projected to be $500.72 million, reflecting a 24.87% increase compared to the equivalent quarter last year [2] Annual Forecast - For the entire year, earnings are forecasted at $0.79 per share and revenue at $2.09 billion, indicating increases of 5.33% and 25.38% respectively compared to the previous year [3] - Recent changes in analyst estimates suggest a favorable outlook on Cloudflare's business health and profitability [3] Analyst Ratings - The Zacks Rank system currently rates Cloudflare at 3 (Hold), with a recent 0.87% increase in the consensus EPS estimate over the last 30 days [5] - The Zacks Rank has a strong track record, with 1 ranked stocks yielding an average annual return of +25% since 1988 [5] Valuation Metrics - Cloudflare has a Forward P/E ratio of 226.3, indicating a premium compared to its industry's Forward P/E of 27.81 [6] - The company has a PEG ratio of 9.21, significantly higher than the Internet - Software industry's average PEG ratio of 2.1 [6] Industry Context - The Internet - Software industry is part of the Computer and Technology sector and holds a Zacks Industry Rank of 54, placing it in the top 22% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Group 1 - Cloudflare reported quarterly earnings of $0.16 per share, matching the Zacks Consensus Estimate, and the same as the previous year [1] - The company posted revenues of $479.09 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 2.21%, compared to $378.6 million a year ago [2] - Cloudflare shares have increased approximately 13% since the beginning of the year, while the S&P 500 has declined by 4.3% [3] Group 2 - The earnings outlook for Cloudflare is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters [4] - The current consensus EPS estimate for the next quarter is $0.19 on revenues of $500.94 million, and for the current fiscal year, it is $0.79 on revenues of $2.09 billion [7] - The Internet - Software industry, to which Cloudflare belongs, is currently ranked in the top 37% of over 250 Zacks industries, indicating a favorable outlook [8]