Preview|NET 26Q2: Growth Momentum Remains Intact; Security Emerging as the Core Incremental Driver

Summary

• Q2 channel performance remains strong, with growth likely to accelerate further from Q1
• Our base case for 2H26 is stable to modestly accelerating growth
• The core growth driver has shifted from standalone CDN/WAF to product expansion and enterprise consolidation. Zero Trust is driving a meaningful increase in ACV, with incremental contributions from Workers and AI products
• Large-enterprise momentum continues to improve. Channel partners are seeing migrations from AWS/Azure CDN and Zscaler, alongside a growing number of large, multi-year deals
• Cloudflare One's SASE advantages are primarily its installed base, global edge network, deployment speed, and vendor-consolidation proposition. However, gaps remain in data protection, SD-WAN, and identity security, while Palo Alto and Zscaler remain formidable competitors in large, complex enterprise deployments