Well-Positioned for the Agentic Internet - Cloudflare C26 Analyst Day

Research evidence excerpt

Well-Positioned for the Agentic Internet - Cloudflare C26 Analyst Day

Infrastructure & AI Software

Cloudflare, Inc. (NET)

EQUITY RESEARCH Company Update

June 9, 2026

Well-Positioned for the Agentic Internet - Cloudflare Price: $236.13

Price Target: $230.00 (From C26 Analyst Day

$224.00)

We attended Cloudflare's CY26 Analyst Day earlier today (06/09) in New Rating: Neutral

York City and came away incrementally constructive, with management

Key Statistics: framing AI and the Agentic Internet as both a revenue accelerator and Symbol NYSE: NET

margin-expansion catalyst. The event sharpened the bull case around 1) 52-Week Range 158.83 - 276.82

Market Cap 88,643.7 Cloudflare’s isolates-based developer platform appears increasingly well-

ADV (3 mo) 4,441,006 positioned for agentic workloads versus legacy hyperscaler VM/container

EV ($M) 86,444 architectures, 2) Cloudflare OS demonstrates how AI can drive internal

Shares Out (M) 319.5 productivity across engineering, GTM, and G&A while potentially becoming

a future commercial product, and 3) the company’s expanding Act 3/

Research Analysts: Act 4 opportunity set is translating into stronger AI-native traction, rising

Thomas Blakey, CFA TAM, improving enterprise momentum, and a higher long-term financial 617-443-4487

Thomas.Blakey@cantor.com framework. Reflecting this strength, management raised its North Star

Michael Vidovic from Rule of 40 to Rule of 50 in CY27 and 50%+ thereafter, increased

224-704-0733 long-term operating margin targets to 30%+ and FCF margin to 30–

Michael.Vidovic@cantor.com 35%, and introduced a target to reach GAAP profitability by 2028. While

Matthew Park we expect investors to monitor near-term gross margin mix pressure, 212-915-1835