Cloudflare, Inc. (NET) shares surged 6.63% in after-hours trading following the release of its second-quarter 2025 financial results, which exceeded analyst expectations and were accompanied by optimistic future guidance.

The web infrastructure and security company reported adjusted earnings per share (EPS) of $0.21, surpassing the consensus estimate of $0.18. Revenue for the quarter came in at $512.316 million, comfortably beating the projected $501.3 million. Cloudflare's adjusted net income reached $75.1 million, significantly higher than the $67.5 million analysts had anticipated.

Adding to the positive sentiment, Cloudflare provided an encouraging outlook for the third quarter and full year 2025. For Q3, the company expects non-GAAP EPS of $0.23 on revenue between $543.5 and $544.5 million, outpacing analyst estimates of $0.21 EPS and $538.3 million in revenue. The full-year guidance was equally impressive, with projected non-GAAP EPS of $0.85 to $0.86 and total revenue of $2,113.5 to $2,115.5 million, both surpassing Wall Street's expectations. This strong performance and optimistic forecast likely fueled investor enthusiasm, driving the stock's after-hours rally.