Cloudflare shares tumble on weak guidance, AI-driven restructuring

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. Shares of Cloudflare were down more than 21% at about $202 on Friday morning.