Cloudflare shares up 18% after earnings beat, raised

Shares of Cloudflare surged roughly 18% in after-hours trading on Thursday, August 6, after the internet infrastructure and security company reported second-quarter financial results that exceeded analyst expectations and raised its full-year outlook, citing strong demand driven by artificial intelligence.

The company reported revenue of $696.1 million for the quarter ended June 30, a 36% increase from the same period last year and surpassing the Wall Street consensus estimate of approximately $665 million. Adjusted earnings per share were $0.29, also beating forecasts. Cloudflare said it achieved record growth in total paying customers and large customers, with the cohort spending over $100,000 annually growing 27% year-over-year to 4,698.

Following the strong quarter, management raised its financial guidance. For the full 2026 fiscal year, Cloudflare now expects revenue between $2.86 billion and $2.87 billion, up from its previous forecast. It also increased its adjusted earnings per share outlook to a range of $1.25 to $1.26. For the current third quarter, the company projected revenue of $736 million to $737 million and adjusted earnings of $0.34 per share, both above...