Quick Read – Cloudflare (NET) posted Q1 FY2026 revenue of $639.75M, up 34% YoY and beating consensus, with non-GAAP EPS of $0.25 exceeding the $0.23 estimate, and Piper Sandler raised its price target to $250 from $222. – Cloudflare’s restructuring announcement and workforce…
duction scared investors into profit-taking after a sharp pre-earnings rally, but the strength of bookings growth and Cloudflare’s edge compute position in the emerging AI inference cycle support the analyst’s buy-the-dip stance. – Piper Sandler analyst James Fish raised his price target on Cloudflare (NYSE:NET) to $250 from $222, keeping an Overweight rating, even as the stock cratered after Q1 FY2026 earnings. Cloudflare shares fell roughly 24% on May 8, extending an after-hours slide following the report
For prudent investors, Fish’s call reads as a textbook buy-the-dip endorsement on one of the priciest infrastructure software names. Fish wasn’t surprised by the selloff, noting that Cloudflare stock had run up sharply into the earnings report. Cloudflare shares climbed roughly 19% over the past month through May 7, setting up a classic profit-taking unwind regardless of fundamentals.
The Analyst’s Case Fish described the report as “largely a perplexing quarter for Cloudflare that may remind some of three years ago,” a nod to past execution stumbles that ultimately proved to be buying opportunities. He continues to recommend buying dips in Cloudflare as “one of the highest quality names in tech.” The Piper Sandler view: a sharp drawdown after a more than 40% run in just a few weeks reflects positioning, not a thesis break. The price target raise to $250 signals continued confidence in Cloudflare’s multi-year growth runway.