- Matthew Prince, co-founder and CEO of Cloudflare, said that the shift towards artificial intelligence and agents drove demand across the company’s services.
- The CEO also highlighted that AI-generated traffic on Cloudflare’s network more than doubled in January alone, reinforcing demand across application services.
- The company provided first-quarter (Q1) revenue guidance of $620 million to $621 million, while street expectations on average were at $613.88 million, according to Fiscal.ai.
Shares of Cloudflare Inc. (NET) surged nearly 14% in Tuesday’s post-market hours after the company reported fourth-quarter (Q4) 2025 earnings results that beat street expectations.
Cloudflare posted Q4 revenue of $614.5 million, a 34% increase year-over-year, beating analyst expectations of $591.67 million, according to data from Fiscal.ai. The company’s diluted earnings per share for the quarter grew about 47% from the previous year to $0.28, marginally beating street expectations of $0.27.
Matthew Prince, co-founder and CEO of Cloudflare, said that the shift towards artificial intelligence and agents drove demand across the company’s services.
Cloudflare’s Agentic Advantage
“If agents are the new users of the web, Cloudflare is the platform they run on and the network they pass through. This creates a virtuous flywheel: more agents drive more code to Cloudflare Workers, which fuels demand for our performance, security, and networking services. We were built for this moment and the rise of the agentic internet," Prince said.
In a call with investors, Prince said that Cloudflare positions AI and autonomous agents as a structural tailwind. The CEO added that agents are fundamentally reshaping how the internet is used by generating orders of magnitude and higher traffic than humans.
Prince also said that AI agents increasingly act as primary users of the web, adding that agents “are the ultimate infrastructure multiplier.”
The CEO also highlighted that AI-generated traffic on Cloudflare’s network more than doubled in January alone, reinforcing demand across application services.
Hyperscaler Comparison
Contrasting Cloudflare’s model with hyperscalers, Prince said that while hyperscalers monetize rented compute, Cloudflare monetizes work done, allowing significantly higher efficiency per GPU and avoiding the capital intensity of large AI infrastructure builds, which essentially becomes a competitive advantage for the company as AI workloads scale.
“With more than 20% of the web already sitting behind Cloudflare network, we are effectively the global control plane for the agentic,” Prince said, adding later that if “AI agents are the new users of the internet, Cloudflare is the platform they run on, and the network they pass through.”
Forward Guidance
The company provided first-quarter (Q1) revenue guidance of $620 million to $621 million, while street expectations on average were at $613.88 million, according to Fiscal.ai.
The company expects to post EPS of $0.23, versus a street expectation of $0.25.
How Did Stocktwits Users React?
On Stocktwits, retail sentiment around NET shares jumped from ‘bearish’ to ‘bullish’ territory over the past 24 hours.
Meanwhile, message volumes rose from ‘high’ to ‘extremely high’ territory.
One bullish user said that only projected revenue growth for the company matters, and the company is forecasting it to accelerate this year. The user forecast NET shares to surge over $300.
Shares of NET have risen more than 4% in the past year.
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