Cloudflare (NET) is expected to report a Q1 earnings beat, supported by stronger contract activity showing larger deal sizes and increased adoption of security and compute modules, Oppenheimer said Friday in a report.

Contract values probably grew 10% to 15% in Q1 from a year earlier with bot management, AI gateway and app security also picking up, the report said.

More than half of Q1 contracts included Workers modules, up from 45% in the prior quarter and 10% to 15% two years ago, the report said.

Oppenheimer models Q1 revenue of $620.7 million and expects management to maintain its 2026 revenue guidance.

Oppenheimer maintained its outperform rating on Cloudflare stock with a $300 price target.

Q1 results are due May 7.

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