Cloudflare Q2 2026 Earnings: Revenue Rises 36% as Restructuring Widens GAAP Loss

Cloudflare’s Q2 fiscal 2026 revenue increased 36% year over year to $696.1 million, while non-GAAP diluted EPS rose to $0.29 from $0.21. GAAP operating loss widened to $205.7 million, largely reflecting a $150.7 million restructuring charge, and GAAP gross margin fell 3.1 percentage points to 71.8%. Free cash flow improved to $56.4 million, or 8% of revenue. The company issued Q3 revenue guidance of $736 million to $737 million as current remaining performance obligations grew 35%, leaving investors to weigh healthy demand against margin pressure.