EarningsQ2 2026 Earnings Report
MX:NET Q2 2026 EPS Results
Actual EPS$4.91
Consensus EPS$4.54
Beat/MissBeat by +$0.37
One Year Ago EPS$3.55
MX:NET Q2 2026 Revenue Results
Actual Revenue$11.78B
Expected Revenue$11.25B
Beat/MissBeat by +$531.28M
YoY Revenue Growth+35.87%
Earnings Announcement Details
QuarterQ2 2026
Date08/06/2026
TimeAfter Close
Conference CallThursday, August 6, 2026
MX:NET Upcoming Earnings
Cloudflare's next earnings date is estimated for October 29, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
MX:NET Q2 2026 Earnings Call
0:00 / 0:00
Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed strong business momentum: double‑digit top-line growth (+36% YoY), expanding large-customer base, 120% dollar-based net retention, outsized developer and paying-customer acquisition, record bookings/pipeline acceleration, meaningful free cash flow and substantial enterprise wins. Management also laid out a confident outlook with robust guidance. Key negatives include a meaningful year-over-year gross margin decline (320 bps), sizable restructuring and severance charges (Q2: $151M; FY up to $165M), increased network CapEx expectations and added forecasting variability from new consumption and pool-of-funds contract structures. Overall, the positives — product adoption, customer expansion, cash generation and positioning for agentic AI — materially outweigh the near-term margin and one-time cost challenges.Company Guidance
Strong Revenue Growth
Total revenue of $696.1 million, up 36% year-over-year, demonstrating robust top-line momentum.
Significant Large-Customer Expansion
4,698 customers paying >$100k annually (up 27% YoY). Record 986 net additions year-over-year and 282 large customers added in Q2; large customers contributed 73% of revenue (up from 71% YoY).
High Dollar-Based Net Retention
Dollar-based net retention of 120%, up 2 percentage points sequentially and up 6 percentage points year-over-year, indicating strong expansion within the base.
Developer and Paying-Customer Momentum
Platform engagement surged: more than 7.4 million developers on the platform (nearly 2 million added in Q2 alone). Added over 80,000 paying customers in the quarter, driving 74% year-over-year paying-customer growth.
Profitability, Margin Improvement and Cash Generation
Non-GAAP operating income of $96.1 million with a 13.8% operating margin; operating income up 33% YoY. Free cash flow of $56.4 million (up 69% YoY) and cash, cash equivalents and securities of $4.2 billion.
Record Sales Productivity, Bookings and Pipeline
Sales productivity increased year-over-year for the 10th consecutive quarter; new customer bookings grew at the fastest rate in more than 5 years; pipeline generation accelerating at its fastest pace in 5 years. Remaining performance obligations (RPO) of $2.732 billion, up 38% YoY (up 7% sequentially); current RPO up 35% YoY and represents 64% of total RPO.
Material Enterprise Contract Wins
Multiple large deal wins across sectors (examples: a 5‑year $31.8M media contract; a 3‑year $11M European tech deal; a 5‑year $7.7M federal contract; multiple pool-of-funds and Workers deals including $7.5M, $4M, $15.9M, $6M), validating adoption across Application Services, Zero Trust, Workers, Magic Transit and SASE.
Leadership in AI / Agentic Internet
For the first time, >50% of network traffic was non-human in Q2. Launched agent-focused capabilities (Monetization Gateway, wallets, cloudflare.pay) and announced a research pilot with OpenAI — positioning Cloudflare as a foundational provider for agentic/AI workloads and agentic commerce.
Confident Forward Guidance
Q3 revenue guidance of $736M–$737M (+31% YoY) and FY2026 revenue guidance of $2.864B–$2.870B (+32% YoY), with full-year operating income guidance of $443M–$445M and EPS guidance supporting continued profitable growth.
MX:NET Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed