Cloudflare reported third quarter revenue of 782.5 million dollars, up 39 percent year over year, well above the consensus estimate of about 736.8 million dollars and the fastest growth rate in nearly four years. Annualised revenue crossed 3 billion dollars. Non-GAAP earnings were 0.38 dollars per diluted share against a 0.34 dollar consensus, and non-GAAP operating income of 137.1 million dollars set a record margin of 17.5 percent. On a GAAP basis the company still lost 34.1 million dollars, or 0.10 dollars per share.
The forward book stayed strong. Total remaining performance obligations reached 2.877 billion dollars, up 34 percent year over year, with current RPO up 37 percent. United States revenue was 406.9 million dollars, 52 percent of the total and up 44 percent, while EMEA contributed 203.5 million dollars, up 32 percent. The company also recorded its first revenue from its Act 4 products, which manage agentic traffic and content monetisation.
Guidance did the heavy lifting. Fourth quarter revenue is guided at 845 million to 846 million dollars, about 38 percent growth and well above the roughly 798 million dollar consensus, with non-GAAP EPS of 0.43 dollars. Full year 2026 revenue guidance rose to 2.963 billion to 2.964 billion dollars, the third raise this year, and management said GAAP profitability should arrive in the fourth quarter, pulled forward from a previous target of late 2028.
The print landed in the middle of a broad technology selloff, with the Nasdaq down sharply on November 5 and Nvidia off 9.3 percent. Cloudflare’s acceleration, driven by its Workers developer platform and large customer cohorts rather than a single AI contract, is the clearest demand signal of this earnings session that enterprise network spending has not cracked.