Cloudflare Raises Annual Profit Forecast After Strong Second Quarter

Cloudflare Inc. raised its annual adjusted profit forecast to between $1.25 and $1.26 per share, surpassing its previous guidance of $1.19 to $1.20 and the Wall Street average of $1.20. The cybersecurity company reported second-quarter results that topped estimates, signaling that a 20% workforce reduction in May and a transition to an agentic AI-first operating model have not slowed growth.

Chief Executive Officer Matthew Prince attributed the strong performance to accelerating demand for networking services. He noted that the rapid adoption of artificial intelligence is driving a shift toward machine-to-machine traffic. Cloudflare shares have gained 44% this year, significantly outpacing the Russell 1000 index.