Cloudflare raises full-year profit outlook, with adjusted earnings per share expected to reach $1.25 to $1.26

Odaily News: Cybersecurity company Cloudflare released its earnings report and raised its full-year profit outlook, projecting adjusted earnings per share of $1.25 to $1.26 for 2026, up from the previously estimated $1.19 to $1.20 and exceeding Wall Street analysts' expectations of $1.20.

The company's second-quarter results also surpassed market expectations. Cloudflare stated that as AI applications expand rapidly, demand for network infrastructure and security services from enterprises continues to grow. CEO Matthew Prince noted that the internet is shifting toward AI answer engines and agent-driven business models, with machine-to-machine traffic reshaping the network ecosystem.

In May this year, Cloudflare announced layoffs of approximately one-fifth of its workforce and advanced its AI agent-first strategy. The company's stock price has risen 44% year-to-date. (Bloomberg)