Cloudflare, a US-based cloud and cybersecurity company, raised its full-year revenue and adjusted earnings outlook after second-quarter results beat Wall Street estimates.

The stronger outlook was driven by demand tied to AI agents, sending its shares up 18% in after-hours trading.

Revenue for the quarter ended June 30 was US$696.1 million, above analysts’ estimate of US$665.5 million.

Adjusted earnings were US$0.29 per share, compared with the expected US$0.27.

Cloudflare said demand for AI agents was increasing traffic across its network and lifting demand for its cloud and security products.

Its AI offerings also include tools to run inference on its network and to build agents with model routing, durable execution, and data services.

Cloudflare now expects 2026 revenue of US$2.86 billion to US$2.87 billion and third-quarter revenue of US$736 million to US$737 million, both above analyst forecasts.

The stronger outlook follows Cloudflare’s May 7 announcement to cut more than 1,100 jobs as part of what the company called an agentic AI-first operating model, rather than a standard cost-cutting exercise.

🔗 Source: Reuters

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