Cloudflare shares surge 5.41% after-hours as Q4 earnings outlook highlights AI-driven growth and enterprise adoption momentum.

Cloudflare (NET) surged 5.41% in after-hours trading following the release of positive analyst commentary and earnings expectations. Jefferies analysts highlighted the company’s potential to outperform Q4 revenue and earnings estimates, citing continued AI-driven growth and enterprise adoption of its zero-trust cybersecurity solutions. The firm noted Cloudflare’s Q4 revenue guidance of 28% year-over-year growth as achievable, with potential to exceed consensus estimates by 2%, driven by high-value contract wins and global expansion. Additionally, the company’s AI Workers platform and Model Context Protocol adoption were positioned as growth tailwinds. While macroeconomic challenges and cautious enterprise spending were flagged as near-term risks, the analysts emphasized long-term upside from AI infrastructure demand and margin improvement. These optimistic projections, combined with Barclays’ reaffirmed $235 price target, likely spurred the after-hours rally.