Cloudflare shares surge 16% to record high after Q2 earnings beat and AI traffic outlook

Cloudflare Inc. reported second‑quarter revenue of $696.1 million, a 36% increase year over year, and adjusted earnings of $0.29 per share, both beating analyst expectations. The company raised its full‑year revenue guidance to about $2.87 billion and lifted its earnings outlook, sending the stock up roughly 16% to an all‑time high.

Executives highlighted that AI‑generated web traffic now exceeds human traffic on the network, with CFO Thomas Seifert projecting non‑human traffic could eventually be a thousand times larger than human traffic. CEO Matthew Prince emphasized the shift toward machine‑driven usage and contrasted Cloudflare’s asset‑light model with rivals’ heavy capital spending. Following the results, several research firms upgraded their price targets, including Piper Sandler (to $333), Oppenheimer (to $380), Needham (to $380), Baird (to $330), BTIG (to $382) and Citizens (to $394).