Cloudflare Q4 Revenue Jumps 33.6% to $614M; AI Spurs Q1 30% Growth Forecast
Cloudflare’s Q4 2025 net revenue rose 33.6% year-over-year to $614 million, supported by a 34% increase in cRPO and 48% growth in RPO. Adjusted net income surged 55% and free cash flow more than doubled, while Q1 2026 guidance forecasts 30% revenue growth with nearly 500 basis points of acceleration.
1. Q4 2025 Financial Results
Cloudflare reported Q4 2025 net revenue of $614 million, a 33.6% increase year-over-year and sequential acceleration, fueled by robust demand for AI-driven internet services. Current remaining performance obligation rose 34% and total RPO climbed 48%, reflecting large client deals and expanding contracted backlog.
2. Profitability and Cash Flow
Adjusted operating income increased 15% and adjusted net income climbed 55% as operational leverage offset margin pressure from higher marketing and R&D expenses. Free cash flow more than doubled year-over-year, highlighting strong cash generation despite incremental investments.
3. Q1 2026 Guidance
Management forecasted 30% revenue growth for the first quarter with nearly 500 basis points of year-over-year acceleration, driven by continued AI agent traffic expansion. Executives emphasized the ability to control marketing and R&D costs to sustain margins in upcoming quarters.
4. Analyst Targets and Institutional Activity
Analyst consensus price targets rose, with projections implying roughly 30% upside to the high-end range near $300, signaling confidence in further stock appreciation. Institutional ownership stands at 82%, with recent accumulation activity supporting the share price rebound.