Cloudflare’s Zero‑Trust Earnings Test Might Change The Case For Investing In Cloudflare (NET)

• Cloudflare recently presented at the WEST Conference 2026 in San Diego and is reporting its fourth-quarter 2025 results today, a focal point for investors tracking developments in cloud security and network performance.
• The upcoming earnings report will test how effectively Cloudflare’s zero-trust offerings are offsetting challenges in closing larger enterprise deals amid macroeconomic and geopolitical pressures.
• We’ll now examine how Cloudflare’s push into zero-trust cybersecurity shapes its investment narrative in light of the latest earnings expectations.

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What Is Cloudflare's Investment Narrative?

To own Cloudflare, you really need to believe that its global network and zero-trust security platform can keep attracting customers fast enough to justify a premium valuation, despite ongoing losses and a rich price-to-sales multiple. The fresh context from its WEST Conference appearance and today’s Q4 2025 earnings call matters mainly as a check on that belief: can zero-trust adoption and AI-related partnerships translate into sustained revenue momentum while large enterprise deals remain harder to close under macro and geopolitical pressures? With the share price pulling back over the past quarter even as consensus price targets still sit meaningfully higher, the immediate risk/reward hinges on how convincingly management updates the pipeline, billings, and profitability path. If those signals disappoint, the downside from an already expensive base could become more front-of-mind.

However, investors should not overlook how much execution risk is tied to those large enterprise deals. Cloudflare's share price has been on the slide but might be dropping deeper into value territory. Find out whether it's a bargain at this price.

Exploring Other Perspectives

The 27 fair value estimates from the Simply Wall St Community span roughly US$12.60 to about US$232.78, showing how far apart individual views can be. That spread sits against a business still unprofitable, priced well above many peers on sales, and facing real questions around converting its zero-trust and AI buzz into consistently stronger earnings. You can compare these different viewpoints with the current macro pressure on large deals to judge how much optimism you think is already in the price.

Explore 27 other fair value estimates on Cloudflare - why the stock might be worth as much as 34% more than the current price!

Build Your Own Cloudflare Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Cloudflare research is our analysis highlighting 1 key reward and 1 important warning sign that could impact your investment decision.
• Our free Cloudflare research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Cloudflare's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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