Cloudflare shares rise about 10% after the company reports fourth-quarter earnings that beat analyst expectations and issues strong guidance for 2026. Revenue growth is supported by accelerated adoption of artificial intelligence workloads, which increases demand for networking, edge compute, and security services.
Cloudflare says AI-related traffic and enterprise contracts expand rapidly, with customers deploying AI applications that require high-performance connectivity and distributed infrastructure. Management signals confidence in sustained growth as businesses scale AI capabilities across operations.
Investors respond positively to the combination of robust results and forward guidance, interpreting it as evidence that Cloudflare’s platform is capturing critical infrastructure demand tied to generative AI and broader digital transformation trends.
