Cloudflare predicted on Tuesday that its full-year and first-quarter sales will surpass Wall Street expectations, fueled by the growth in cloud service demand driven by advancements in artificial intelligence (AI) technology, causing its after-hours stock price to soar nearly 12%. As industries across the board integrate AI, cloud computing demand continues to rise, and Cloudflare anticipates benefiting from this trend, particularly with the increase in AI agents. The company's CEO stated that the shift toward AI and agents is driving demand for its services. Cloudflare projects that its 2026 sales will range between $2.79 billion and $2.8 billion, with first-quarter sales expected between $620 million and $621 million, both exceeding previous forecasts. The company's stock price has surged over 83% in 2025 but has declined more than 8% year-to-date.
