New York, Feb 12, 2026, 11:19 ET — Regular session
- Cloudflare stock slipped about 0.1% to $189.28, barely moving.
- The stock has seen sharp swings following results and an upbeat sales forecast linked to AI-driven traffic.
- Friday’s U.S. inflation data is in focus, with traders also tracking commentary from executives due at conferences ahead.
Cloudflare, Inc. slipped about 0.1% to $189.28 by 11:13 a.m. ET on Thursday, giving back some ground after its earnings rally earlier this week. Shares had touched an intraday high of $200.39 before fading, as broader tech names also traded lower.
The tepid reaction stands out. Cloudflare, now seen as a go-to for “AI infrastructure” plays in software, runs right in the flow of internet traffic, selling firms on its security and performance tech. Traders latch onto the story fast, but just as quickly pull back their bets when broader conditions deteriorate.
The macro test is right around the corner. Investors know high-multiple software names often behave like rate-sensitive trades—one inflation print, and expectations for U.S. interest rates could shift fast.
Cloudflare is projecting 2026 revenue between $2.785 billion and $2.795 billion. For the first quarter, it’s guiding to revenue of $620 million to $621 million. The company reported a 33.6% jump in fourth-quarter revenue to $614.5 million, and free cash flow hit $99.4 million—16.2% of revenue. Remaining performance obligations surged 48% from a year ago, reflecting contracted sales not yet recognized. 1
The company linked its forecast to growing use of AI agents—software designed to act online for users—and said this is fueling greater need for secure routing and speedier delivery at the network edge. “The shift toward AI and agents represents a fundamental re-platforming of the internet that’s driving demand across Cloudflare’s services,” CEO Matthew Prince said. 2
Analysts are zeroing in on the “non-human traffic” story. Truist Securities’ Junaid Siddiqui points out that since roughly 20% of all global internet traffic runs through Cloudflare’s infrastructure, the company could end up as a key gatekeeper for large-scale automated activity. 3
Brokerage commentary has rolled in. Baird’s Shrenik Kothari bumped Cloudflare to Outperform from Neutral, putting a $260 target on the stock. He pointed to the company’s fourth-quarter report, calling it the clearest evidence so far that several growth drivers are building momentum. 4
Friday brings the next major macro data point: the U.S. Consumer Price Index for January, set for release at 8:30 a.m. ET. If the number comes in hot, expensive software stocks could take a hit. But if inflation cools, AI-linked stocks might see more buying. 5
Cloudflare’s surge has drawn eyes to other edge delivery and security players. Fastly—after posting record quarterly revenue on Wednesday—saw CEO Kip Compton describe AI as “an increasing tailwind” for the company. 6
But there’s risk in both directions. Cloudflare had a reliability hiccup last year, and the jury’s still out on whether the surge in AI-related traffic actually becomes locked-in revenue, not just extra activity flashing across the network. If the market turns shakier—or Cloudflare has another outage—the stock could lose support in a hurry.
Cloudflare investors are eyeing upcoming management appearances for possible signals on demand trends, pricing, and capex. The company’s on the docket at Baird’s Silicon Slopes Conference Feb. 26, then Morgan Stanley’s Technology, Media and Telecom Conference March 3. 7
