Cloudflare Stock Surges 16% on Strong Earnings and AI-Driven Growth
Cloudflare shares soared 16% in premarket trading after reporting Q4 2025 revenue of $614.5 million, surpassing Wall Street's $591.3 million estimate. The company's 34% year-over-year growth was fueled by rising demand for AI-integrated cloud services.
Earnings per share reached $0.28, narrowly beating the $0.27 forecast. Gross margins expanded to 74.9%, while operating income hit $89.6 million. The company now counts 4,298 customers paying over $100,000 annually—a 23% increase year-over-year.
Full-year 2026 revenue guidance of $2.785-$2.795 billion exceeded analyst expectations, signaling continued confidence in enterprise adoption of AI-powered security solutions. The stock closed after-hours trading at $179.50, up 3.55%.