Cloudflare (NYSE:NET) shares surged 6% in after-hours trading Tuesday after the San Francisco-based cloud connectivity and cybersecurity firm posted strong fourth-quarter results and raised its revenue outlook. NET reported earnings of $0.28 per share on revenue of $614.50 million, beating analyst expectations of $0.27 per share on $591.43 million in sales.

The company's current-quarter revenue guidance of $620 million to $621 million also topped consensus estimates of $615.50 million, while full-year 2026 revenue projections of $2.785 billion to $2.795 billion exceeded expectations of $2.74 billion. Adjusted earnings per share guidance for the full year came in at $1.11 to $1.12, slightly below the $1.19 consensus estimate.

Despite the lower-than-expected earnings guidance, investors focused on the stronger revenue outlook and the company's continued growth momentum. The results suggest Cloudflare is successfully expanding its market share in the competitive cloud security sector, with the revenue beat indicating robust demand for its services despite broader tech sector headwinds.