Cloudflare Stock Pops After Strong Q2 Results

Cloudflare Inc. (NYSE:NET) shares are surging Friday after the internet security and infrastructure company shattered second-quarter expectations on both the top and bottom lines.

• Cloudflare shares are testing new highs. Why did NET hit a new high?

Revenue Accelerates as Cloudflare Delivers a Standout Quarter

Adjusted earnings of 29 cents per share arrived 7.4% above the 27 cent consensus while revenue of $696.06 million topped the $665.5 million estimate and expanded 36% from the $512.32 million the company generated in the comparable period a year earlier.

Remaining performance obligations on a current basis grew 35% from the prior year. CEO Matthew Prince described the period as stellar, pointing to record additions across total paying customers, large enterprise customers and developers building on the platform as evidence of the company’s broadening commercial reach.

Raised Guidance on Both Revenue and Earnings Tops Analyst Expectations

Cloudflare lifted its fiscal 2026 adjusted EPS outlook to a range of $1.25 to $1.26, clearing the $1.21 consensus, while simultaneously raising its full-year revenue forecast to $2.86 billion to $2.87 billion, a range that sits above the prior $2.81 billion analyst estimate.

Six Analysts Raise Price Targets Following the Strong Print

• BTIG’s Gray Powell maintained Buy and raised his target to $382 from $314
• Needham’s Mike Cikos maintained Buy and raised his target to $380 from $280
• Oppenheimer’s Param Singh maintained Outperform and raised his target to $380 from $330
• Keybanc’s Jackson Ader maintained Overweight and raised his target to $375 from $300
• Barclays’ Saket Kalia maintained Overweight and raised his target to $355 from $300
• Truist Securities’ Junaid Siddiqui maintained Buy and raised his target to $350 from $300

NET’s Breakout Math: Distance From the Averages Tells the Story

The longer‑term trend is still firmly pointed higher. NET sits 9.7% above its 20‑day SMA, 18.1% above its 50‑day SMA, 30.6% above its 100‑day SMA and 41.1% above its 200‑day SMA, an extended posture that rewards trend followers and frustrates anyone waiting for a more comfortable entry.

The moving‑average stack reinforces that strength. The 20‑day SMA is above the 50‑day SMA, and the May golden cross keeps the broader setup aligned with trend continuation rather than mean reversion. Momentum is telling the same story. MACD is above its signal line and the histogram is positive, pointing to improving upside pressure versus the prior downswing. In practice, buyers are absorbing pullbacks faster than sellers can press them.

The immediate question is whether NET can hold above the prior breakout zone near the old high around $305.00. If it does, that reclaimed level often becomes the new line in the sand for trend continuation. If it doesn’t, momentum traders tend to tighten risk quickly. Below that, the notable support marker is $250.50, a level where buyers previously stepped in.

NET Shares Are Flying

NET Price Action: Cloudflare shares were up 7.04% at $304.44 at the time of publication on Friday. The stock is trading at a new 52-week high, according to Benzinga Pro.

Image: Erlin Diah/Shutterstock