NET 3Q25: Second Consecutive Quarter of Accelerating Growth Driven by Security and Workers AI

Results aligned with our preview — Cloudflare delivered its second consecutive quarter of accelerating growth, beating expectations and raising full-year guidance. Shares rose 8% post-earnings.

Revenue growth entered the 30% range, with Q3 YoY growth at 30.7%. The company raised the top end of full-year guidance by 1.3%, implying 28% YoY growth in Q4. Based on historical beat rates, Q4 growth could accelerate further to 31–32%.

The CFO expects Cloudflare to reach a $3B annualized revenue run rate by FY26Q4, implying ~25% ARR growth next year. Management views this as a conservative near-term guide, consistent with prior patterns (the initial FY25 revenue guide was also +25%). The company reaffirmed its long-term goal of $5B by FY28, implying a 27% CAGR from FY25–FY28, primarily driven by enterprise expansion.

Key Takeaways from Earnings Call

Overall commentary matched our preview — growth remained driven by Security and Workers AI, with channel and enterprise traction improving. The Pay-per-Crawl commercialization is progressing as expected.

ACT 2: Security Remains the Core Growth Engine