Cloudflare, Inc. (NET) shares surged 16.65% in pre-market trading on Friday, extending the sharp rally that began after the company reported second-quarter financial results that handily beat Wall Street expectations and raised its full-year outlook, fueled by accelerating demand for AI-driven network services.

The company posted revenue of $696.1 million, up 36% year-over-year and well above the consensus estimate of $665.5 million. Adjusted earnings per share came in at $0.29, surpassing the $0.27 analysts had forecast. For the third quarter, Cloudflare guided revenue between $736 million and $737 million and adjusted EPS of $0.34, both comfortably exceeding Street estimates. The full-year outlook was also lifted, with revenue now seen at $2.86 billion to $2.87 billion and adjusted EPS of $1.25 to $1.26, up from prior guidance of $2.81 billion and $1.20 per share.

CEO Matthew Prince attributed the strong performance to accelerating demand driven by the shift toward AI answer engines and agent-driven commerce, positioning Cloudflare at the center of the emerging “Agentic Internet.” The company’s expanding AI product suite and infrastructure for machine-to-machine traffic reinforced investor confidence in its long-term growth story, sending the stock sharply higher in extended trading and into the pre-market session.