Cloudflare reported first quarter 2026 revenue of $639.8 million, up 34% year-over-year, and non-GAAP EPS of $0.25, beating analyst estimates. The company also announced a significant restructuring plan to align with an AI-first operating model.
Key Highlights
- First quarter revenue grew 34% year-over-year to $639.8 million, while current Remaining Performance Obligations (RPO) also increased 34% year-over-year.
- Announced a plan to reduce its workforce by approximately 20% to accelerate its evolution to an 'agentic AI-first operating model,' expecting to incur charges of $140 million to $150 million.
- Free cash flow increased to $84.1 million, representing a 13% margin, up from an 11% margin in the prior year's quarter.