Cloudflare (NET) delivered another "clean and impressive" quarter, marking its second straight period of accelerating revenue growth and reinforcing confidence in its long-term opportunity, RBC Capital Markets said in a Friday note.

Revenue rose 31% year over year to $562 million, outpacing consensus, while adjusted earnings of $0.27 per share also topped estimates. The company guided for Q4 revenue of about $589 million and EPS of $0.27, both above prior expectations.

The brokerage RBC highlighted stronger enterprise demand, improving sales execution, and broad platform adoption as key drivers of growth. Dollar-based net retention improved to 119% from 114% in the prior quarter, supported by continued momentum in Workers, security products, and AI-related services.

Cloudflare raised its full-year revenue outlook to about $2.14 billion, up roughly 28%, and reaffirmed its long-term targets of a $3 billion annualized run rate by Q4 2026 and $5 billion by 2028.

The firm maintained its outperform rating on the stock and lifted its price target to $265 from $250, calling Cloudflare a top long-term idea.

Shares of Cloudflare jumped more than 12% in recent trading.

Price: 250.29, Change: +27.79, Percent Change: +12.49