Cloudflare forecasts annual sales above estimates as AI drives cloud demand

Cloudflare forecast annual and first-quarter sales above ​Wall Street estimates on Tuesday, betting on the rapid development of artificial intelligence technology to drive demand for its cloud services.

Shares of the firm ‌jumped nearly ⁠12% in ⁠extended trading.

The race to integrate AI across industries has resulted in an ​uptick in cloud demand, as businesses prioritize spending on the digital infrastructure ​necessary for developing the booming tech.


Cloudflare is also expected to benefit from an increase in AI agents, such as "Clawdbot," recently renamed ​to "OpenClaw," whose users can utilize the cloud ⁠firm's technology ‌to safely route traffic to their private computers, ​allowing remote control ​without risking the security of their home ⁠networks.

"The shift toward AI and agents represents a ​fundamental re-platforming of the internet that's driving demand ​across Cloudflare's services," CEO Matthew Prince said in a statement.

The upbeat results on Tuesday could also help allay investor concerns around sustaining customer demand after a Cloudflare outage in November had prevented thousands from accessing major internet platforms, including X ‌and ChatGPT.

Cloudflare forecast 2026 sales between $2.79 billion and $2.80 billion, above estimates of $2.74 billion, according to data compiled ​by LSEG.

It ​also expects first-quarter ⁠sales between $620 million and $621 million, also above estimates of $613.9 million.

The company reported that the December quarter revenue grew 33.6% to $614.5 million, ​beating estimates of $591.3 million.

Its net loss narrowed to $12.1 million in the quarter, from $12.8 million in the year-ago period.

Shares of the company are down over 8% so far this year, after gaining more than 83% in 2025.