Cloudflare announced revenue outlooks above expectations for both 2026 and for the current quarter, supported by strong demand for cloud services linked to the rise of artificial intelligence. The market welcomed the announcements, despite recent questions over the reliability of its services.
For 2026, Cloudflare forecasts revenue of between $2.79bn and $2.80bn, above the $2.74bn consensus according to LSEG. The group expects Q1 sales of $620m to $621m, beating expectations of $613.9m. The company is banking on an acceleration in investment in the digital infrastructure needed to develop AI.
Cloudflare said the rise of AI agents and new applications based on the technology is lifting demand across its suite of services. The group highlighted solutions that securely route traffic to personal computers, enabling remote control without compromising network security. CEO Matthew Prince said that the shift represents a structural transformation of the internet that benefits the company. The announcements follow an outage in November that disrupted access to several major platforms.
In Q4 ended in December, revenue rose 33.6% y-o-y to $614.5m, beating expectations of $591.3m. Its net loss narrowed slightly to $12.1m, from $12.8m a year earlier. YTD, the stock is down a little over 8%, after rising over 83% in 2025.
Cloudflare, Inc. is a connectivity cloud company. It is a global cloud services provider that delivers a range of services to businesses of all sizes and in all geographies. Its network serves as a scalable, unified control plane to deliver security, performance, and reliability across on-premise, hybrid, cloud and software-as-a-service applications. Its integrated suite of products consists of solutions for an organization's external-facing infrastructure, such as Websites, applications and application programming interfaces to deliver security and reliability; solutions to serve an organization's internal resources, such as internal networks and devices; developer-based solutions and consumer offerings. Its security products include Web Application Firewall, Bot Management, SSL/TLS Encryption and Secure Origin Connection. Its performance products include Content Delivery, Intelligent Routing, Content Optimization and Others. It also offers a zero trust infrastructure access platform.
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