Cloudflare stock rises on strong earnings: AI agents boost network demand

Cloudflare reported adjusted earnings of 28 cents per share on revenue of $615 million in Q4 of 2025. Analysts had predicted 27 cents per share on $591 million in revenue. The stock rose after the earnings report and the company’s stronger revenue guidance. CEO and co-founder Matthew Prince said the rise in AI agents is changing the way the internet is used. He called it a “fundamental re-platforming” of the web. He said AI agents are now major users of online services, which increases demand for fast and secure networks.

AI agents are software tools that can perform tasks for users automatically. These systems need fast, reliable, and safe networks to work effectively. Cloudflare’s edge infrastructure reduces delays and improves security for these AI tools. The company’s open-source AI assistant Moltbot went viral recently. Cloudflare also launched Moltworker, a platform to run AI tools securely, reinforcing its role in supporting AI applications.

Cloudflare raised its revenue forecast for Q1 of 2026 to $620–$621 million. Analysts had expected $614 million. For the full year, Cloudflare now expects revenue of $2.79–$2.80 billion, higher than the previous estimate of $2.74 billion. Analysts said the strong outlook shows that demand for AI-driven services is not temporary. Investors view the guidance as a sign that Cloudflare’s business is likely to keep growing.

Analysts suggest tracking the growth of AI tools and developer engagement on Cloudflare’s platform. The company’s edge network and Workers platform are key strengths. Investors are advised to consider both earnings and infrastructure demand before making decisions.