Cloudflare’s NET Workers developer platform is becoming an increasingly important part of its growth strategy. During the second quarter of 2026, the company said its Workers platform continued to drive new customer adoption. Cloudflare ended the second quarter with more than 7.4 million developers on its platform, adding nearly two million developers in the second quarter alone. This was more than the 1.5 million developers added during all of 2025.
Cloudflare’s Workers developer platform is also gaining traction among enterprise customers. Cloudflare said more customers are including Workers in pool-of-funds contracts, allowing them to use the developer platform along with services such as Zero Trust and reverse proxy. For example, an APAC technology company signed a $4 million pool-of-funds contract for Workers after previously signing an $8.7 million Application Services contract. Another technology company signed a $6 million Workers contract to support its AI agent capabilities.
Cloudflare said the Workers platform has moved beyond being mainly an adoption-focused product and has become a meaningful contributor to revenues. The company also noted that the Workers platform is driving consumption as customers use it alongside its security and networking products. This creates an opportunity for Cloudflare to expand its relationships with existing customers as their developer teams increase their use of the platform.
The growing use of AI agents could provide another boost to the Workers Platform, which is designed to help customers build, deploy and scale AI agents. With AI workloads increasing and more developers joining the platform, Workers could become a key contributor to Cloudflare’s overall growth. The Zacks Consensus Estimate for Cloudflare’s 2026 and 2027 revenues indicates year-over-year growth of 32.3% and 28.5%, respectively.
Cloudflare Faces Tough Competition
Competitors like Palo Alto Networks PANW and Zscaler ZS are also gaining ground through platform expansion and AI innovation.
Palo Alto Networks’ wide range of innovative products, strong customer base and growing opportunities in areas like Zero Trust and SASE continue to support its long-term growth potential. In the third quarter of fiscal 2026, SASE was Palo Alto Networks’ fastest-growing segment, with SASE Annual recurring revenues up 40% year over year. PANW's SASE business is benefiting from strong customer demand for cloud-delivered networking and security solutions as enterprises continue to support hybrid work environments and secure access to cloud applications.
Zscaler is seeing strong adoption of its Zero Trust Everywhere strategy, which is helping the company expand beyond its traditional user security offerings. The strategy combines security for users, cloud workloads and branch locations on a single platform. The company ended the third quarter of fiscal 2026 with more than 700 Zero Trust Everywhere enterprises, up from more than 550 in the previous quarter. As more customers adopt multiple products across the platform, Zero Trust Everywhere could help Zscaler increase customer spending, win larger deals and support long-term growth.
NET’s Price Performance, Valuation & Estimates
Shares of Cloudflare have jumped 40.7% in the year-to-date period against the Zacks Internet – Software industry’s decline of 4.5%.
NET YTD Price Return Performance
Image Source: Zacks Investment Research
From a valuation standpoint, NET trades at a forward price-to-sales ratio of 28.87, significantly higher than the industry’s average of 3.91. The Zacks Value Score of F suggests that NET stock is overvalued.
NET Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for NET’s 2026 earnings is pegged at $1.26 per share, revised up by a penny over the past seven days, indicating a 35.5% increase from the previous year.
Image Source: Zacks Investment Research
Cloudflare currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).