Cloudflare reported June-quarter revenue of $696.1 million, up 35.9% year over year and $31 million above the ceiling of its own guidance. Growth accelerated from 34% in the March quarter. Non-GAAP EPS came in at $0.29 against $0.21. Current remaining performance obligations grew 35%, the third consecutive quarter of acceleration in that metric. Full-year revenue guidance moved to $2.864–2.870 billion from $2.805–2.813 billion. The stock closed the regular session down 3% at $284.17 and traded up roughly 16% after hours to the $329 area, an all-time high and well through the prior $305 peak.

Cloudflare's Path to a Trillion: The Edge Inference Bet

Cloudflare closed last week near $236 a share, a market capitalization in the low eighties of billions against trailing-twelve-month revenue of $2.33 billion. Q1 2026 revenue landed at $639.8 million, up 34 percent year over year, the company's fourth consecutive quarter of accelerating growth. The stock trades at roughly 31 times sales. To reach a trillion-dollar valuation, Cloudflare must compound revenue at twenty-five percent or better for the better part of a decade while convincing the market it is no longer a security vendor but the compute substrate of the distributed internet. That is a ten-to-twelve-times re-rating from here. It is also more achievable than the current cohort multiple implies, and the reason is inference.