Q3 2026 results
| Metric | Result | Change |
|---|---|---|
| Revenue | $782.5 million | up 39% year-over-year |
| Operating Income | $137.1 million | up 60% year-over-year |
| Operating Margin | 17.5% | up 220 basis points year-over-year |
| Large Customers | 5,000 | added 308 in the quarter |
| Diluted Net Income Per Share | $0.38 | Not stated |
Guidance and outlook
- Q4 revenue in the range of $845 million to $846 million.
- Q4 operating income in the range of $156 million to $157 million.
- Q4 diluted net income per share of $0.43.
- Full year 2026 revenue in the range of $2.963 billion to $2.964 billion.
- Full year 2026 operating income in the range of $462 million to $463 million.
- Full year 2026 diluted net income per share of $1.35.
How management sounded
Confident (+9 on our -10 to +10 scale). Management described the quarter as a monster quarter with record results across nearly every metric and raised their outlook. Management sounded more upbeat than on 99% of the 190 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Q&A summary
Agentic Internet
Asked: How does the rise of the Agentic Internet impact Cloudflare's business and monetization?
Answer: Cloudflare acts as a mediator between agents and content creators, helping define the rules of the road while monetizing through efficiency and new business models as agents require more bandwidth and compute.
Pool of Funds
Asked: How does the shift to consumption-based revenue and faster pool of funds burning affect forecasting?
Answer: Strong variable revenue is driving upside, and customers are renewing earlier into larger contracts, which informs the guidance for the fourth quarter.
Security
Asked: How are cyber budgets reacting to the current vulnerability landscape?
Answer: CISOs are in a state of panic due to the vulnerability tsunami, and Cloudflare is seeing increased demand as a trusted partner to protect against these threats.
Leadership
Asked: What are the priorities for the new President of Revenue, Christian Smith?
Answer: Priorities include doubling down on go-to-market execution, accelerating enterprise momentum, and ensuring rapid time to value for customers.
What to watch before the next call
- The transition of leadership as Christian Smith takes over as President of Revenue.
- The evolution of Act 4 products and their contribution to revenue.
- The impact of the vulnerability landscape on security spending and customer acquisition.
