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Cloudflare Shares Climb 5% on Earnings Beat and Strong AI-Driven Revenue Outlook

Prime Highlights

  • Cloudflare shares gained after the company reported stronger-than-expected quarterly results and issued upbeat revenue guidance, driven by rising demand for AI infrastructure and security services.
  • CEO Matthew Prince highlighted the rapid growth of AI agents as a major catalyst, calling it a “fundamental re-platforming” of the internet that is boosting demand for Cloudflare’s network.

Key Facts

  • The company posted adjusted earnings of 28 cents per shareon $615 million in revenue, up 34% year over year and above analyst expectations.
  • Cloudflare forecast full-year revenue of $2.79 billion to $2.80 billion, exceeding market projections, and ended 2025 with 5 million active developers.

Background

Cloudflare shares rose 5% on Wednesday after the company reported better-than-expected fourth-quarter earnings and issued strong revenue guidance, supported by rising demand for artificial intelligence tools.

The cloud networking and cybersecurity firm posted adjusted earnings of 28 cents per share on revenue of $615 million, beating analysts’ estimates of 27 cents per share and $591 million in revenue. Sales increased 34% from a year earlier.

The company also forecast first-quarter revenue between $620 million and $621 million, above Wall Street expectations of $614 million. For the full year, Cloudflare expects revenue of $2.79 billion to $2.80 billion, higher than market projections.

CEO Matthew Prince said the rapid growth of AI agents, tools that perform tasks for users, has increased demand for Cloudflare’s infrastructure and security services. He described the trend as a “fundamental re-platforming” of the internet, adding that AI agents now rely on Cloudflare’s network to operate securely and efficiently.

Investor interest also grew after Moltbot, a viral open-source AI assistant built on Anthropic’s Claude model, gained popularity. Cloudflare’s edge infrastructure helped power the tool securely. The company later introduced its own platform, Moltworker, designed to run such agents safely.

Analysts noted that AI agents require fast, secure processing close to users, which benefits Cloudflare’s Workers platform. Prince said the company ended 2025 with 4.5 million active developers, reflecting growing adoption as AI reshapes internet traffic and security needs.