Cloudflare (NET) Q1 Results Beat Expectations, But Market Reaction Tells A Mixed Story

With a abbreviated interval of 2.71% and upside imaginable of 21.60%, Cloudflare, Inc. (NYSE:NET) earns a spot connected our database of the best unreality stocks to bargain arsenic Azure maturation hits 40%.

Cloudflare, Inc. (NYSE:NET)’s first-quarter results came successful up of expectations, but the market’s absorption told a mixed story.

Cloudflare, Inc. (NYSE:NET) had climbed implicit 30% YTD heading into net but pulled backmost much than 23% since Q1 results connected May 7, settling astatine $197.56 connected May 15, 2026. Despite that move, astir 25 of 37 covering analysts stay bullish connected the shares.

On May 8, 2026, Bernstein chopped its terms people to $136 from $146, keeping a “Market Perform” rating, and said the 4th fundamentally delivered a maturation complaint accordant with the 4th fourth alternatively than the acceleration immoderate had hoped for pursuing beardown results astatine AWS and Datadog. Net gross retention fell to 118%, and portion the bushed comparative to guidance was normal, Bernstein kept a much measured tone.

Susquehanna saw it differently.

On May 11, 2026, expert Shyam Patil raised the firm’s terms people to $200 from $190, maintaining a “Neutral” rating, and described the 4th arsenic a good one, with spot peculiarly disposable among ample customers.

Patil besides noted Cloudflare, Inc. (NYSE:NET)’s announcement of a important headcount simplification arsenic it pivots toward an AI-first operating operation aimed astatine driving ratio and productivity, and flagged the much blimpish second-quarter guidance arsenic prudent alternatively than alarming.

The company’s first-quarter gross came successful astatine $639.8 million, good up of the $621.9 cardinal estimate, with adjusted net of 25 cents per share, beating the 23-cent consensus. Second-quarter gross was guided astatine $664 cardinal to $665 million, conscionable beneath the $665.3 cardinal Wall Street estimate, and adjusted net are expected astatine 27 cents per stock .

Cloudflare, Inc. (NYSE:NET) is simply a starring connectivity unreality institution that specializes successful improving the security, performance, and reliability of websites and applications.

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