Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTProactiveTue, August 4, 2026 at 9:02 PM GMT+2 3 min readCloudflare poised for second quarter revenue acceleration, says Jefferies Proactive uses images sourced from ShutterstockCloudflare (NYSE:NET) is expected to accelerate revenue growth in the second quarter and raise its full-year outlook, according to Jefferies, with investors likely looking for a path toward a mid-30% growth rate by the end of 2026 when the company reports results on August 6.The company's Q2 revenue guide of $664.5 million at the midpoint implies year-over-year growth of about 30%, a four-percentage-point sequential deceleration despite a one-percentage-point tougher comparison.Jefferies wrote that the target appears achievable, but investors are likely looking for growth of at least 34% and guidance that supports confidence in a mid-30% growth exit rate.The firm expects Cloudflare to beat its second-quarter revenue guidance, based on the company's recent performance, which would bring growth to about 33.6% year over year. Jefferies also expects Cloudflare to raise its full-year revenue guidance by more than the amount of any second-quarter beat.Jefferies' proprietary survey produced mixed results ahead of the report, with performance to plan declining to 0.6% in the second quarter from 2.1% in the first. On a seasonally adjusted basis, however, performance was solid at 0.8%, compared with the second quarter of 2025. The survey also indicated continued momentum in SASE, while 65% of respondents expected Cloudflare spending to accelerate in the second half compared with the first half.Investors are also likely to focus on the impact of Cloudflare's previously announced 20% workforce reduction and any updates on the search for a chief revenue officer. Jefferies wrote that management appears confident the workforce reduction will not disrupt operations, particularly given its limited expected impact on quota-carrying sales representatives, although the firm continues to see some near-term risk that could constrain growth acceleration.Cloudflare's full-year revenue guidance currently calls for 30% year-over-year growth. Jefferies expects the company to raise its outlook and wrote that investors will likely seek commentary supporting a path toward a mid-30% growth exit rate, while noting tougher second-half comparisons and the workforce reduction as potential constraints.On profitability, Cloudflare's Q2 guidance calls for a non-GAAP operating margin of 13.6% to 13.7%, representing about 220 basis points of sequential expansion and roughly 50 basis points of year-over-year contraction. Jefferies expects some operating margin upside, partly reflecting benefits from the workforce reduction, while continuing to expect pressure on gross margins.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info