Cloudflare delivered a double beat in the second quarter of 2026, with revenue growth accelerating to 36% year-over-year. The performance was driven by record growth in large customers and developers as the company pivots its infrastructure toward the "Agentic Internet," supporting AI-driven machine-to-machine traffic. Despite a $150.7 million restructuring charge related to its recent workforce reduction, operational efficiency improved with a non-GAAP operating margin of 13.8%.
Key Highlights
- Revenue of $696.1 million exceeded the analyst estimate of $666.0 million, representing significant acceleration from previous periods.
- Non-GAAP operating income reached $96.1 million, surpassing the top end of management's guidance range of $90.0–$91.0 million.
- Forward-looking momentum remains robust with current Remaining Performance Obligations (RPO) growing 35% year-over-year.
- Free cash flow for the quarter was $56.4 million, or 8% of revenue, an increase from 6% in the prior year period.