Cloudflare Tops Q4 Estimates by 4.2%, Guides 29% Growth for 2026
Cloudflare beat Q4 2025 revenue estimates by $24M (4.2% beat) with net-new ACV up 50%—its highest since 2021 aided by the largest deal ever—and guided midpoints for 2026 to 29% growth, citing 30% acceleration as achievable. Affinity Wealth Management acquired 19,921 shares valued at $4.28M, signaling institutional confidence.
1. Q4 2025 Earnings Beat
Cloudflare reported revenue that exceeded internal estimates by $24 million, marking a 4.2% beat and its strongest quarterly performance of 2025.
2. ACV and Growth Momentum
Net-new annual contract value jumped nearly 50% in Q4—its highest since 2021—driven by the largest single ACV deal in company history. The company guided to 29% revenue growth at the midpoint for 2026, with 30% acceleration deemed achievable.
3. Analyst Outlook
KeyBanc analyst Jackson Ader reiterated an Overweight rating and maintained a $300 price target, highlighting sustained acceleration in revenue and ACV as key drivers for continued optimism.
4. Institutional Buying
Affinity Wealth Management initiated a position by purchasing 19,921 shares valued at approximately $4.28 million in the third quarter, underscoring renewed institutional confidence in Cloudflare’s growth trajectory.