As Cloudflare prepares to announce its latest quarterly financial results, a notable shift in sentiment is emerging among market observers. Following a period of volatility at the end of 2025, research analysts are now expressing renewed confidence in the cloud infrastructure company’s long-term strategic direction. The central question remains whether the upcoming report will validate the firm’s ambitious forecasts for its network security and developer services divisions.
On February 4, BTIG research analyst Gray Powell upgraded his rating on Cloudflare stock from “Neutral” to “Buy,” establishing a new price target of $199.00. Powell’s revised assessment stems from recent market analysis indicating strengthening momentum for Cloudflare’s Zero Trust and Secure Access Service Edge (SASE) offerings. The analyst contends that the long-term potential of the company’s web application security business is currently undervalued by the broader market.
Financial Expectations and Recent Performance
All attention is now focused on Tuesday, February 10, 2026, when Cloudflare is scheduled to release its fourth-quarter 2025 earnings after the U.S. market closes. Key consensus figures and company projections are as follows:
* Revenue Consensus: $580.70 million
* Company Guidance Range: $588.5 million to $589.5 million
* Expected Earnings Per Share (EPS): $0.27
The discrepancy between the analyst consensus and management’s own revenue forecast is a point of interest. Should the company meet its projected EPS, it would represent growth compared to the same period in the prior year.
Should investors sell immediately? Or is it worth buying Cloudflare?
Currently trading at €145.42, the share price has shown modest stabilization in recent sessions. However, the stock remains weighed down by a year-to-date decline of approximately 13%, keeping it significantly below its 52-week high of €218.20.
Growth Trajectory and Competitive Positioning
Market experts express confidence that Cloudflare can sustain a revenue growth rate in the high 20-percent range through 2028. This outlook is bolstered by the consistent positive trajectory of its developer services segment, which has been building momentum since early 2025. Evidence suggests the company is successfully capturing market share within specialized security sectors and recovering from setbacks experienced last year. A global service outage in November 2025 had previously placed substantial downward pressure on the stock.
The upcoming earnings release on February 10th is viewed as the next critical catalyst for the stock’s near-term direction. It will provide a clear indication of Cloudflare’s ability to meet its own ambitious guidance and sustain the positive analyst sentiment that has recently emerged.
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