04:39 AM EDT, 05/08/2026 (MT Newswires) -- (Updates to include restructuring details and the latest stock price movement.)

Cloudflare (NET) reported Q1 non-GAAP earnings late Thursday of $0.25 per diluted share, up from $0.16 a year earlier.

Analysts polled by FactSet expected $0.23.

Revenue for the quarter ended March 31 rose to $639.8 million from $479.1 million a year earlier.

Analysts surveyed by FactSet expected $620.8 million.

The company said it expects Q2 non-GAAP EPS of $0.27 and revenue of between $664 million and $665 million. Analysts expect $0.27 and $663.1 million, respectively.

For 2026, it now expects adjusted EPS of $1.19 to $1.20 on revenue of $2.805 billion to $2.813 billion.

Its previous guidance was for adjusted EPS of $1.11 to $1.12 on revenue of $2.785 billion to $2.795 billion. Analysts expect $1.12 and $2.79 billion, respectively.

Cloudflare said it expects to reduce its workforce by about 1,100 people as part of a planned restructuring. The company projects to incur charges of $140 million to $150 million in connection with the plan. Cloudflare expects the majority of the charges to be incurred in its fiscal Q2, while the execution of the plan will be substantially complete by the end of fiscal Q3.

The company's shares were down nearly 16% in premarket activity Friday.