Cloudflare Inc. (NYSE:NET) grew its share price by 10.51 percent on Wednesday to finish at $10.51 apiece after issuing a highly optimistic outlook, saying that its future opportunity “could be much larger” than its business.
Speaking at the Goldman Sachs Communacopia + Technology Conference 2026, Chief Finance Officer Thomas Seifert said that Cloudflare Inc. is now moving beyond a traditional software-as-a-service (SaaS) model to becoming an agentic AI platform amid the rapidly growing artificial intelligence sector.
It highlighted huge opportunities in several areas, including inference, content protection, and payments infrastructure.
In this light, the company raised its north star outlook to 50 percent annually from 40 percent at present, while revenues are projected to grow by 36 percent year-on-year.
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Q2 Revenues Up 36%
In the second quarter of the year, Cloudflare Inc. said that it grew its revenues by 36 percent to $696.1 million from $512 million in the same period last year.
Net loss, however, widened by 237 percent to $169.98 million from $50.4 million year-on-year, amid a 206 percent higher operating loss.
OpenAI Partnership
Earlier this month, Cloudflare Inc. joined forces with OpenAI for the early launch of Vulnerability Discovery and Remediation, which could help organizations pinpoint high-risk vulnerabilities and automatically block attacks at the edge before they can be exploited.
With the service, eligible customers are able to triage what is actively under fire, buy time with instant edge protection, and ship verified fixes faster.
The service is available in early access through Cloudflare Managed Defense.
“If your security team is manually fighting AI-driven attacks, you’re not just burning them out—you’re losing. Now, we’re shifting the defense strategy away from chasing patches one vulnerability at a time to an automated approach,” Cloudflare Inc. CEO Matthew Prince said.
Hedge Funds Bullish
Partnership aside, institutional investors appeared to have been bullish about their long-term growth prospects for the company in the second quarter of the year.
During the period, 87 hedge funds held positions in the stock, up from 84 in the quarter previously.
More notably, their combined holdings soared by 11.8 percent to $3.97 billion from $3.55 billion.
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