Cloudflare Likely to Top Third-Quarter Guidance Amid Growing Adoption of Security Products, Oppenheimer Says

MT newswire2026/10/09 14:48

10:48 AM EDT, 10/09/2026 (MT Newswires) -- Cloudflare (NET) is likely to post third-quarter results above its guidance amid growing adoption of its security products as the company is positioned to benefit from agentic artificial intelligence, Oppenheimer said in a note Friday. The cloud and cybersecurity company's contract values likely grew by between 15% and 20% year over year in the third quarter, sustaining the growth seen in the prior three-month period, boosted by long-term deals and customers purchasing multiple products, according to Oppenheimer analysts Param Singh and Jake Heimowitz. Oppenheimer is projecting third-quarter earnings per share of $0.36 on sales of $738.5 million for Cloudflare. Analysts in a FactSet poll are looking for non-GAAP EPS of $0.34 and sales of $736.8 million, while the company in August guided for third-quarter EPS of $0.34 on a revenue range of $736 million to $737 million. Cloudflare is scheduled to release its quarterly results on Oct. 29. "We continue to see agentic AI as a significant opportunity for Cloudflare given the higher security attach," the Oppenheimer analysts said. "Our industry conversations confirm this dynamic, with improved growth and attach rates for Bot Management and API shield." Bot Management and API Shield are Cloudflare's security products that protect applications from malicious bot traffic and APIs from attacks and data leakage, respectively. Workers, another Cloudflare product, saw increased adoption as demand for edge compute for agentic AI traffic grew, the note said. The company will likely lift its full-year revenue guidance, Oppenheimer said. In August, management raised its full-year outlook following better-than-expected second-quarter results, with revenue now projected in the range of $2.86 billion to $2.87 billion, compared with prior guidance of up to $2.81 billion. The Street is currently looking for $2.87 billion. Oppenheimer, which has an outperform rating on Cloudflare, raised its price target on the stock to $430 from $380. Cloudfl

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