Key Points – Cloudflare posted strong Q1 2026 results, with revenue up 34% year over year to $639.8 million and large-customer revenue growing 38%.
The company also reported $84.1 million in free cash flow and ended the quarter with $4.2 billion in cash and securities. – AI demand is accelerating Cloudflare’s business, especially through its Workers developer platform and agentic workloads
Executives said internal AI usage surged, developer counts rose to more than 5.5 million, and AI-related traffic is becoming a major growth driver. – Cloudflare is restructuring its workforce to become AI-first, cutting more than 1,100 roles, or about 20% of staff. Management said the move is aimed at redesigning operations around AI and expects restructuring charges of $140 million to $150 million in 2026, while leaving free cash flow guidance unchanged. Cloudflare (NYSE:NET) reported a strong first quarter of 2026, with revenue rising 34% year over year to $639.8 million, as executives said demand tied to AI, agentic workloads and its Workers developer platform continued to accelerate.
Co-founder and CEO Matthew Prince said the company began the year with “very strong” momentum, citing gains in large customers, sales productivity and new pipeline generation. Cloudflare ended the quarter with 4,416 customers paying more than $100,000 annually, up 25% from a year earlier. Revenue from those large customers grew 38% year over year and accounted for 72% of total revenue, compared with 69% in the prior-year period. – The Market Is Selling Everything, but These 5 Stocks Aren’t Breaking Down The company’s dollar-based net retention rate was 118%, down 2 percentage points sequentially but up 7 percentage points year over year.