Overview
- Cloudflare reported second-quarter revenue of $696.1 million and adjusted earnings of $0.29 per share, both above analyst estimates.
- The company raised its full-year revenue guidance to $2.86 billion–$2.87 billion and lifted annual adjusted EPS to $1.25–$1.26 per share.
- Cloudflare disclosed Thursday that non-human traffic from AI agents now exceeds half of total network traffic, a shift the company says is driving higher usage of its networking and security products.
- Under GAAP the quarter showed a net loss of about $170 million driven by one-time restructuring and related charges tied to a May plan that cut roughly 20% of staff, or about 1,100 positions.
- Investors pushed the stock up about 16–18% after the results and several analysts raised price targets, but valuation multiples are high so continued growth and margin recovery will be key to justify the premium.