Haverhill Financial Research · October 12, 2026
Summary: Haverhill price target $345 (12 months)
Cloudflare runs one of the largest networks on the internet and is reshaping it for a web where a growing share of traffic comes from AI bots and agents. The business is speeding up: revenue grew 36% to $696 million in the June quarter, large customers rose 27% and dollar-based net retention reached 120%. The catch is the price, about 47 times this year's guided revenue at $360.93, with free cash flow over the last four quarters of $315 million, less than a year of stock-based pay. Our 12-month price target of $345 (through October 2027) sits about 4% below the current price, so we rate the shares Hold.
Cloudflare filings through the Q2 2026 Form 10-Q; Haverhill Financial Research model; price as of NYSE close Oct 9, 2026
Growth is accelerating. Revenue growth rose from 31% in Q3 2025 to 36% in Q2 2026, and Cloudflare guides to about 32% for full-year 2026.
Big customers keep spending more. 4,698 customers pay more than $100,000 a year, up 27%, and they produce 73% of revenue.
Our view: a strong business priced for years of near-perfect execution. Cash generation is thin next to stock-based pay, so we would wait for a lower entry price.
