Fastest Revenue Growth in Nearly Four Years
Cloudflare's press release put revenue at $782.5 million, up 39% from a year earlier. CEO Matthew Prince called it the company's best quarter ever and its fastest revenue growth in nearly four years, with annualized revenue crossing $3 billion. Non-GAAP income from operations was $137.1 million, or 17.5% of revenue, up from $85.9 million, or 15.3%, a year earlier. Non-GAAP net income per diluted share was $0.38, versus $0.27. Current remaining performance obligations grew 37% year over year. Free cash flow was $82.1 million, or 10% of revenue.
GAAP results still showed a loss: GAAP loss from operations was $67.9 million, and GAAP net loss was $34.1 million, or $0.10 per share, reflecting stock-based compensation and other items the company excludes from its non-GAAP presentation. Non-GAAP gross margin slipped to 72.4% from 75.3%. Investing.com listed consensus at about $736.8 million of revenue and $0.34 of adjusted EPS, so both headline lines beat.
Guidance That Cleared the Street by a Wide Margin
The forward targets did as much work as the quarter. For the fourth quarter, Cloudflare guided revenue to $845.0 million to $846.0 million and non-GAAP EPS to $0.43. Investing.com put the Street at about $798.2 million and $0.38. For full-year 2026, the company expects revenue of $2,963.0 million to $2,964.0 million and non-GAAP EPS of $1.35, against consensus near $2.87 billion and $1.26. AskTraders noted the fourth-quarter midpoint cleared even the highest individual estimate it tracked. That combination—acceleration in the reported quarter plus guidance above the top of the Street—is the classic beat-and-raise setup that can gap a high-multiple software name even after a weak cash session.
Fifteen Percent Delivered Against a Twelve-to-Fourteen-Percent Chain
TipRanks listed an options-implied move of about 14.02% into the report. Delayed Cboe quotes at Thursday's close showed the November 6 weekly $245 call at $14.20 bid / $15.80 ask and the $245 put at $14.40 / $16.10, a midpoint straddle near $30.25, or about 12.4% of the $244.51 close. Break-evens on that midpoint sit near $214.26 and $274.76. An after-hours print near $281 is roughly $6.50 above the upper break-even: the $245 call would carry about $36 of intrinsic value against a straddle that cost about $30.25 at the midpoint. Against TipRanks' 14% figure the upper break-even is near $279, so the early after-hours print still sits slightly through that bar as well.
Front-week implied volatility on those strikes was quoted near 293% to 296% annualized, while NET's 30-day implied volatility index was about 87%. Once the event passes, that front-week premium usually collapses toward the longer-dated level. Long calls bought before the print keep the intrinsic value from the gap but lose most of their remaining time value; holders of the put leg lose nearly everything on that side. Short call spreads above about $275 face assignment risk at expiration if the stock holds above the short strike. Our implied volatility guide covers how post-earnings IV behaves, and the OCC options disclosure document explains the risks of standardized options, including early assignment.
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*By the OptionsPilot Editorial Team. Published November 5, 2026, 2:23 PM PT. This article is for education only and is not investment advice. Options involve risk and are not suitable for all investors.*
