Shares of Cloudflare, Inc. (NYSE: NET) experienced a notable surge in post-market trading on Friday, February 13, 2026, climbing approximately 5.8% to reach $195.85. This after-hours movement elevated the network security and content delivery company's market valuation to roughly $76 billion. The stock had traded within a daily range of $184.66 to $198.71, with volume nearing 6.7 million shares.
Financial Guidance and Performance Metrics
The positive investor sentiment followed the company's release of forward-looking financial targets. Cloudflare provided revenue guidance for the full year 2026, projecting a range between $2.785 billion and $2.795 billion. Concurrently, it forecast non-GAAP earnings per share of $1.11 to $1.12. For the immediate first quarter, management anticipates revenue of $620 million to $621 million.
A significant driver of optimism was a reported 48% year-over-year increase in remaining performance obligations (RPO), which represents contracted revenue not yet recognized. The portion of RPO expected to be recognized within the next twelve months saw a robust 34% climb. Chief Executive Officer Matthew Prince emphasized the company's strategic position, highlighting an average annual contract value of $42.5 million and stating the organization was "built for this moment."
Institutional Ownership and Analyst Sentiment
In a separate regulatory filing, Capital World Investors disclosed a substantial stake in Cloudflare. As of December 31, the investment firm held approximately 36.37 million shares, constituting about 11.5% of the company's outstanding stock. The filing indicated the holdings were for investment purposes in the ordinary course of business, with no present intent to seek control.
Analyst commentary remained bullish. Citi analyst Fatima Boolani reaffirmed a Buy rating on NET shares and raised her price target to $265 from $260, characterizing the company's fourth-quarter performance as "robust." This adjustment contributed to the positive after-hours momentum.
Broader Market and Sector Context
The broader market environment provided a supportive backdrop. The latest U.S. Consumer Price Index data for January showed a monthly increase of 0.2% and a year-over-year rise of 2.4%, figures that came in below economist forecasts. The softer inflation reading prompted a decline in Treasury yields, which typically benefits growth-oriented technology stocks. Phil Orlando, Chief Market Strategist at Federated Hermes, noted the report was "better than expected."
Earnings season within the content delivery network (CDN) and edge computing sector has been volatile. Peer company Fastly saw its shares soar over 75% on Thursday after reporting results that significantly exceeded expectations. Akamai Technologies also traded higher ahead of its own earnings report scheduled for February 19. This sector-wide activity has kept trader focus on competitive dynamics and growth sustainability.
Forward-Looking Considerations and Risks
Market participants are now assessing whether Cloudflare's increased backlog and success with large enterprise deals will translate into more consistent booking trends through the spring, moving beyond a typical post-earnings rally. The company's management is scheduled to present at upcoming investor conferences, including Baird's Silicon Slopes Conference on February 26 and the Morgan Stanley Technology, Media & Telecom Conference on March 3.
However, potential risks persist. The stock remains sensitive to interest rate movements, and a rebound in Treasury yields could apply pressure. Furthermore, any slowdown in enterprise technology spending or a more aggressive competitive push from rival firms or large hyperscale cloud providers could challenge a stock priced for high growth. The company's ability to execute against its guidance amidst these potential headwinds will be closely monitored.
