Oct. 31, 2025 at 2:05 PM ET6 min read

Cloudflare’s Q3 Surge: Buy or Wait?

Tim BohenAvatar
Written by Tim Bohen
Reviewed by Ben Sturgill Fact-checked by Ellis Hobbs

Cloudflare Inc.’s stocks have been trading up by 11.02 percent, driven by positive market sentiment.

On the March to Success

  • Exciting times for Cloudflare as Q3 results showed a huge jump in revenue, a solid 31% bump compared to last year, despite earlier GAAP losses from operations.
  • Predictions for Q4 are looking strong; Cloudflare revised its expected earnings to 27 cents per share and expects revenue projections to hit $588.5M-$589.5M, exceeding what most analysts anticipated.
  • A recent upgrade in Cloudflare’s full-year financial forecast paints a promising picture for investors as Q4 financial expectations and future growth are adjusted upwards.
  • Amidst these bright revelations, support from the UBS indicates another green light for Cloudflare, as price targets have been raised to $240, further boosting investor confidence.

Candlestick Chart

Live Update At 14:04:45 EST: On Friday, October 31, 2025 Cloudflare Inc. stock [NYSE: NET] is trending up by 11.02%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

A Quick Glance at Cloudflare’s Earnings

As Tim Bohen, lead trainer with StocksToTrade says, “For me, trading is more about managing risk than finding the next big mover.” In today’s dynamic markets, traders need to focus on developing robust strategies that prioritize risk management over mere speculation. While the allure of uncovering the next breakout stock is strong, the emphasis should be on maintaining a balanced portfolio and minimizing potential losses. By understanding market trends and employing sound trading principles, traders can achieve more consistent results, ensuring long-term success in their trading endeavors.

Cloudflare, identified by the ticker symbol NET, has not only delivered impressive earnings for Q3 2025 but also outshined expectations in more ways than one. The company’s revenues reached $562M, surpassing much of what the financial world had forecasted with a robust growth rate of 31% year-over-year. The net income on a non-GAAP basis saw record-breaking numbers, and free cash flow was positively swinging upwards.

In terms of profitability, while some might raise eyebrows at the setbacks in GAAP operations, the turnaround seen in other areas, like the EPS exceeding estimates, highlights Cloudflare’s operational resilience. What’s intuitive and invigorating is Cloudflare’s continued pursuit of innovation and achievement making it a potential force to reckon with in the cybersecurity and network infrastructure domain.

More Breaking News

The jubilance does not end here. The forward guidance beyond the present quarter similarly paints a picture of assurance with revisions to fiscal 2025 outlook underlying a keen strategy to capitalize on emerging trends. Investors and stakeholders alike find comfort in the framework of these adjusted revenue forecasts, providing extended visibility into future performance and enhanced shareholder commitment.

The Implication of the Numbers

Examining the broader financial scaffold, Cloudflare intriguingly presents itself as a company setting its horizons farther than before. By projecting its fiscal 2025 revenue between $2.142B and $2.143B over the original consensus of $2.11B, it marks the expanse of an upwardly mobile, forward-thinking ambition.

The key ratios articulated create an intriguing narrative as well. While there’s a flutter with negative EBIT margins and the requirement for cost containment measures, the gross margins hold fortitude, reflecting an overarching capacity to charge premium pricing owing to the quality of its services. There’s true persuasive power in Cloudflare’s market capture ability amidst rising demand.

One important aspect to note is the long-term debt and capitalization shifts, illustrating a tale of judicious use of leverage. Coupled with manageable payout obligations and conservative cash policies, Cloudflare seems to be navigating debt dynamics in a balanced manner. Yet, a pulse of caution beats for any enthusiastic investor, warranting a closer inspection of tangible book prices and sustainable cash flows.

Meanwhile, key financial reports reinforce the substance of Cloudflare’s ultimate performance trajectory. Between capital expenditure decisions and operational cash inflows, Cloudflare confidently rallies its internal resources towards achieving these revised guidances, inviting potential growth that could further cement its market position.

Predicting the Ripple Effect

So, what do these revelations mean for Cloudflare’s stock price?

Artifacts of surprise linger across traders as they digest these news sentiments, but it largely conjures a bullish outlook for Cloudflare, setting it on a firm pedestal for high-value buy. Demand pulses intensely through the corridors of market exchanges, hinting at expectations of Cloudflare maintaining this streak amidst rising competition and stimulating larger expectations of both market and revenue expansion.

But the journey isn’t entirely an unchallenged path. While growth is not understated, scrutiny will continue to shine on execution risks, engendered from leadership changes and aligning product strategies. Each earnings beat could instigate escalating increments in intrinsic value, but adjustments might be necessitated by innovation cycles and competition’s tightening grip.

Anticipating underlying fluctuations, whether in technological adaption rates or broader sectoral shifts, underscores the dynamic interspace that Cloudflare operates within. The rally seen in recent price data looks set to continue its ascent, retracing paths carved by innovation-led narratives and positive growth aligning sentiment. Consistency in trading routines, as Tim Bohen, lead trainer with StocksToTrade says, “A consistent trading routine beats sporadic action every time. Show up daily, and you’ll start to see the patterns others miss.” This underlines the importance for traders to stay informed and engaged with Cloudflare’s evolving landscape.

In closing, Cloudflare steers its business with ambition and directs trader attention towards its strong growth pipeline. Eyes remain glued to its progress post-Q3, and as they move into the anticipated Q4 horizon — all eyes on how Cloudflare sustains its rhythm and the harmonious play of fiscal agendas. While the future shines bright, as with any journey of growth, cautious optimism remains the secret sauce to a sustainable grasp on these innovative poles.

This is stock news, not investment advice. StocksToTrade News delivers real-time stock market updates tailored to highlight the key catalysts driving short-term price movements. Our coverage is designed for active traders and investors who thrive in fast-moving markets, with a focus on volatile sectors like penny stocks, AI stocks, Robinhood stocks and other momentum plays. From earnings reports and FDA approvals to mergers, new contracts, and unusual trading volume, we break down the events that can spark significant price action.

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