Cloudflare, Inc. (NET) experienced a significant pre-market surge of 15.00% on Wednesday, following the release of its fourth-quarter financial results that exceeded analyst expectations.

The connectivity cloud company reported quarterly revenue of $614.5 million, surpassing the Wall Street consensus estimate of $591.3 million. Adjusted earnings per share came in at $0.28, also beating expectations of $0.27. This represents a 34% year-over-year revenue increase.

Investors reacted positively not only to the earnings beat but also to the company's forward-looking guidance. Cloudflare expects first-quarter revenue between $620 million and $621 million, exceeding analyst estimates. For the full year 2026, the company projects revenue of $2.79 billion to $2.80 billion, alongside adjusted EPS guidance of $1.11 to $1.12.

The strong performance and outlook are largely attributed to increased demand driven by artificial intelligence technology. CEO Matthew Prince stated that the shift toward AI and AI agents represents a fundamental re-platforming of the internet that's driving demand across Cloudflare's services. The company also highlighted closing its largest annual contract value deal ever during the quarter, averaging $42.5 million per year.