Cloudflare Hits All-Time High After Delivering Strong Sales Forecast

Cloudflare Inc. shares soared to an all-time high after the cybersecurity company delivered results that exceeded both quarterly and full-year expectations. The surge came on the back of a major reorganization and a growing base of large enterprise clients, signaling that its expansion strategy is gaining traction.

‍

For the upcoming fourth quarter, Cloudflare projected revenue of about $589 million, outpacing the average analyst estimate of $580.9 million. The company’s third-quarter revenue came in at $562 million, also comfortably ahead of market forecasts. Alongside the strong sales performance, Cloudflare raised its full-year adjusted earnings per share guidance to 91 cents, up from its prior range of 85 to 86 cents.

‍

The upbeat outlook sent Cloudflare’s stock up as much as 9.3% on Friday to a record $243.20 marking its largest intraday rally since May. The San Francisco–based company has been on a remarkable run in 2025, with shares climbing more than 120% year-to-date. Analysts attribute much of this momentum to Cloudflare’s ambitious vision of transforming its vast global network into a powerful cloud platform that enables customers to train and deploy artificial intelligence models.

‍

Although Cloudflare remains smaller than industry heavyweights such as Akamai Technologies Inc., Palo Alto Networks Inc., and Fortinet Inc., its platform’s accessibility and user-friendly design have made it especially popular among small and medium-sized enterprises. According to Bloomberg Intelligence, this ease of adoption has been one of Cloudflare’s key differentiators in the cybersecurity space.

‍

This year, the company’s efforts to attract larger enterprise clients combined with its growing support for generative AI applications have further strengthened its market position. By integrating AI tools directly into its network infrastructure, Cloudflare is positioning itself as a key player in the evolving intersection of cloud computing and artificial intelligence.

‍

Chief Executive Officer Matthew Prince emphasized the company’s long-term vision during Thursday’s earnings call. “The agents of the future will inherently have to pass through our network and abide by its rules,” Prince explained. “As they do, we’ll help define the protocols, safeguards, and business standards for the agentic internet of the future. And we’ll make sure the tools to engage in that future are accessible to all companies, big or small.”

‍

Prince’s comments reflect Cloudflare’s growing role not just as a cybersecurity firm, but as a foundational infrastructure provider for the next era of the internet where AI-powered agents interact seamlessly across networks.

‍

Cloudflare’s ongoing innovation has fueled consistent revenue growth and investor enthusiasm. The company’s strategic focus on performance, security, and AI integration has helped it stand out in a crowded market, especially as businesses increasingly seek scalable and secure solutions for cloud-based workloads.

‍

Analysts say Cloudflare’s broad network footprint gives it an advantage in the AI race. By leveraging its distributed architecture, the firm can handle massive data flows efficiently an essential capability for companies building or deploying AI models. Its platform’s flexibility also makes it an attractive choice for organizations looking to streamline digital operations while maintaining robust cybersecurity protections.

‍

With strong sales momentum, expanding enterprise adoption, and a growing presence in the AI ecosystem, Cloudflare appears well-positioned for continued success. The company’s focus on blending cybersecurity with intelligent network solutions is resonating with investors who see long-term potential in its evolving business model.

‍

If Cloudflare continues to execute on its vision of powering the “agentic internet,” it could further cement its role as a leading force in shaping how businesses interact, secure data, and leverage artificial intelligence in the years to come.

‍

For now, its record-setting stock performance and confident earnings guidance suggest that Wall Street believes in Cloudflare’s next chapter and that the company’s growth story is far from over.

‍