Cloudflare stock climbed nearly 16% in extended trading after the company reported better-than-expected second-quarter financials and third-quarter guidance as artificial intelligence boosts cybersecurity demand.

Cloudflare reported second-quarter adjusted earnings of 29 cents per share on revenue of $696.1 million. Analysts surveyed by FactSet were expecting earnings of 27 cents per share on revenue of $665 million.

In the same period last year, Cloudflare posted earnings of 21 cents per share on revenue of $512.3 million.

The company also said it expects third-quarter adjusted earnings of be 34 cents per share, which is better than analyst estimates of 32 cents per share. Cloudflare says revenue for the third quarter should be between between $736 million to $737 million, which is also higher than Wall Street estimates of $721 million.

Cloudflare also raised its outlook for the fiscal year. The company now expects fiscal 2026 earnings to be between $1.25 per share and $1.26 per share on revenue of $2.86 billion to $2.87 billion. That's a jump from prior estimates, which called for earnings per share to be betweeen $1.19 and $1.20 on revenue of $2.81 billion.

"As the web shifts to AI answer engines and agent-driven commerce, we are seeing a fundamental rewrite of the Internet for machine-to-machine traffic," CEO Matthew Prince said in the earnings release. "Cloudflare sits at the center of this paradigm shift -- building the infrastructure, controls, developer tools, and payment rails for the Agentic Internet."