Cloudflare's third quarter revenue grew 39% to $782.5M, beating estimates as growth accelerated

Cloudflare reported third quarter 2026 results featuring its fastest revenue growth in nearly four years, with total sales increasing 39% year-over-year to $782.5 million. Non-GAAP diluted EPS of $0.38 beat analyst expectations of $0.35, driven by strong demand for AI-agent security and the Workers developer platform. Despite the top-line acceleration, non-GAAP gross margins compressed by 290 basis points year-over-year to 72.4%, reflecting continued infrastructure investment.

Key Highlights

• Revenue growth accelerated to 39% year-over-year, pushing annualized revenue past the $3 billion milestone.
• Current Remaining Performance Obligations (RPO) grew 37% year-over-year, indicating robust forward-looking demand.
• Non-GAAP operating income rose to $137.1 million, or 18% of revenue, compared to 15.3% in the prior year.
• The company appointed Christian Smith as President of Revenue to lead the next growth phase toward a $5 billion ARR target.