Cloudflare’s shares surged 10% Wednesday following strong fourth-quarter results and positive guidance, fueled by rising adoption of artificial intelligence and agentic tools. The company reported adjusted earnings of $0.28 per share on $615 million in revenue, surpassing analyst expectations of $0.27 per share and $591 million. Revenue increased 34% year over year.
CEO Matthew Prince said AI agents, which can perform tasks autonomously on behalf of users, are driving demand for Cloudflare’s networking and security offerings. He described the trend as a “fundamental re-platforming” of the Internet, with Cloudflare acting as the underlying infrastructure for AI agent activity.
Cloudflare expects first-quarter revenue between $620 million and $621 million, ahead of the $614 million consensus, and projects full-year revenue of $2.79 billion to $2.80 billion versus $2.74 billion estimated. The company’s edge platform has benefited from AI applications such as Moltbot, an open-source personal assistant built on Anthropic’s Claude model, and its own Moltworker platform for secure deployment. Analysts note that the proliferation of AI agents creates scalable, low-latency demand for Cloudflare’s infrastructure, reinforcing its growth trajectory.
