2Q Preview: Edge AI Leadership and Platform Strength Driving Durable Momentum

Research evidence excerpt

2Q Preview: Edge AI Leadership and Platform Strength Driving Durable Momentum

Idea

July 29, 2026 04:01 AM GMT

Morgan Stanley & Co. LLCMCloudflare Inc | North America Sanjit K Singh

Equity Analyst

2Q Preview: Edge AI Leadership Sanjit.Singh@morganstanley.comAdam Wood +1 415 576-2060

Adam.Wood@morganstanley.com +1 212 761-3656

and Platform Strength Driving Jonathan Eisenson

Research Associate

Jonathan.Eisenson@morganstanley.com +1 212 761-2808

Durable Momentum

Cloudflare Inc (NET.N, NET UN)

Channel checks point to another solid qtr for Cloudflare, driven Software | United States of America

Stock Rating Overweight

by durable CDN/AppSec and Developer Platform strength. Our Industry View Attractive

recent Edge AI survey further reinforces NET's leadership in PriceShr price,targetclose (Jul 28, 2026) $322.00$264.10

distributed AI inference and supports an even more constructive Mkt cap, curr (mm) $97,716

52-Week Range $290.82-158.84

2H26 outlook. Fiscal Year Ending 12/25 12/26e 12/27e 12/28e

EPS ($)** 0.93 1.20 1.41 1.70

Key Takeaways Prior EPS ($)** - - - -

P/E NM NM NM NM

Channel checks again screened positive, with Cloudflare remaining one of the EPS ($)§ 0.92 1.21 1.61 2.30

Div yld (%) - - - -

fastest-growing vendors across partner software practices.

Unless otherwise noted, all metrics are based on Morgan Stanley ModelWare

Growth continues to be led by CDN/AppSec and Developer Services, while framework

** = Based on consensus methodology

Cloudflare continues gaining share in Zero Trust. § = Consensus data is provided by Refinitiv Estimates

e = Morgan Stanley Research estimates

Expect another Q2 revenue beat and FY26 raise, with an even stronger setup into Quarterly EPS ($)

2026e 2026e 2027e 2027e

2H supported by platform and AI momentum.