🔴 NET is trading 11% down today on 20% workforce reduction despite Q1 earnings beat

NET is trading at $227.25 (-11%) in after-hours following the announcement of a 20% workforce reduction to shift toward an AI-first model.

• Cloudflare reported Q1 2026 revenue of $639.8M (up 34% YoY) and non-GAAP EPS of $0.25, both of which exceeded market estimates.
• The sharp sell-off contrasts with a subdued after-hours market where indices are trading slightly lower amid light volume and upcoming jobs data.