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Cloudflare Jumps After Q4 Beat and Higher Sales Outlook on AI-Fueled Demand

Executives credit accelerating adoption of AI agents for stronger network usage.

Overview

  • Q4 revenue rose 33.6% to $614.5 million, topping estimates, with adjusted earnings of $0.28 per share edging past forecasts.
  • Cloudflare guided Q1 revenue to $620–$621 million and full-year 2026 sales to $2.79–$2.80 billion, both ahead of Wall Street consensus.
  • The company projected Q1 adjusted EPS of about $0.23 per share, which trailed some analyst expectations of roughly $0.25.
  • Profitability and cash metrics strengthened, including a 74.9% gross margin, $89.6 million in operating income, and $99.4 million in free cash flow.
  • Large-customer adoption expanded to 4,298 accounts spending over $100,000 annually, as management said AI agents and related workloads, including Anthropic-integrated tools, are driving demand.