What is driving Cloudflare's sales growth forecast?

Cloudflare's sales growth is being driven by the rapid development and adoption of artificial intelligence technologies, which are increasing demand for its cloud services.

What are Cloudflare's sales projections for 2026?

Cloudflare expects its 2026 sales to be between $2.79 billion and $2.80 billion, exceeding previous market estimates.

How is the AI trend impacting Cloudflare's business?

The increasing integration of AI across industries is leading to a fundamental re-platforming of the internet, which is driving demand for Cloudflare's services.

Home / Business and Economy / Cloudflare Surges on AI Boom Forecast

Cloudflare Surges on AI Boom Forecast

11 Feb

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Summary

Cloudflare forecasts strong annual and Q1 sales above estimates.
AI development is driving demand for the company's cloud services.
Company expects 2026 sales to reach up to $2.80 billion.

Cloudflare has projected that its annual and first-quarter sales for 2026 will surpass market expectations, driven by the rapid advancements in artificial intelligence. This forecast has led to a substantial increase in the company's share value.

The surging interest in integrating AI across various industries is directly translating into higher demand for cloud services, as businesses are increasing their investments in the necessary digital infrastructure. Cloudflare's CEO, Matthew Prince, stated that the shift towards AI and agents represents a fundamental re-platforming of the internet, which is boosting demand across their service offerings.

The company anticipates first-quarter sales to fall between $620 million and $621 million, exceeding previous estimates. Furthermore, Cloudflare expects its 2026 sales to range from $2.79 billion to $2.80 billion, also surpassing analyst predictions of $2.74 billion. The firm recently reported a 33.6% increase in revenue for the December quarter, reaching $614.5 million, and a narrowed net loss.