Cloudflare defeats Q1 forecasts, announces 20% layoffs; shares slump
Corroborated by 5 sources from 5 publishers
TL;DR
Reports differ across sources; according to finance.yahoo.com, cloudflare (NYSE:NET) reported first-quarter 2026 results on May 7, beating analyst expectations for both revenue and earnings, but shares fell sharply after the company issued softer near-term guidance and announced a significant restructuring tied to an AI-focused operating model shift.
Sources
1
Investing.com News
https://www.investing.com/news/stock-market-news/cloudflare-slumps-on-soft-q2-outlook-announces-shift-to-agentic-ai-model-4669876
2
Yahoo Finance News
https://finance.yahoo.com/markets/article/cloudflare-stock-sinks-as-company-slashes-20-of-its-workforce-citing-ai-134338851.html
3
Yahoo Finance News
https://finance.yahoo.com/markets/stocks/articles/cloudflare-shares-tumble-weak-guidance-141000899.html
4
Yahoo Finance News
https://www.investors.com/news/technology/cloudflare-stock-layoffs-ai-jobs?src=A00220&yptr=yahoo
5
Seeking Alpha Market News
https://seekingalpha.com/article/4900863-cloudflare-inc-net-q1-2026-earnings-call-transcript?source=feed_all_articles
6
TechCrunch
https://techcrunch.com/2026/05/08/cloudflare-says-ai-made-1100-jobs-obsolete-even-as-revenue-hit-a-record-high