Cloudflare, Inc. shares skyrocketed 14.97% in after-hours trading on Thursday, after the cybersecurity and network services company reported second-quarter results that significantly exceeded Wall Street forecasts.

The company posted revenue of $696.1 million for the quarter, sailing past the consensus estimate of $665.5 million. Adjusted earnings per share reached $0.29, compared to the $0.27 analysts had expected. Cloudflare also issued a bullish outlook, guiding for third-quarter revenue between $736 million and $737 million, well above the $722 million estimate, and adjusted EPS of $0.34 versus the projected $0.32.

The strong performance and upbeat guidance appeared to validate growing investor optimism around Cloudflare's expanding AI initiatives, including new tools for AI agents and visibility into AI-driven recommendations, reinforcing confidence in the company's long-term growth story.