Key facts
- Cloudflare raised its annual revenue forecast to $2.86 billion-$2.87 billion, surpassing estimates.
- The company reported Q2 revenue of $696.1 million and forecast Q3 revenue of $736 million-$737 million.
- Cloudflare's Q2 adjusted earnings per share were $0.29, exceeding estimates.
- Annual adjusted earnings guidance was raised to $1.25-$1.26 per share.
- Cloudflare shares rose 15.6% in premarket trading following the results and outlook.
- Microchip Technology forecast upbeat Q2 revenue and profit due to strong demand in AI, industrial, automotive, and aerospace sectors.
- Atlassian jumped 28.5% in premarket trading after forecasting quarterly revenue above estimates.
- The U.S. is set to release July non-farm payrolls data, with expectations of 80,000 jobs added.
- The White House imposed a 15% tariff on polysilicon products.
Cloudflare raised its full-year revenue and earnings forecasts, citing strong demand for its network services to support AI agents, and reported robust second-quarter results that surpassed analyst expectations. The company's shares jumped 15.6% in premarket trading.
Cloudflare's annual revenue forecast was lifted to a range of $2.86 billion to $2.87 billion, exceeding the previous outlook and analysts' average estimate of $2.81 billion. Second-quarter revenue reached $696.1 million, surpassing the $665.5 million estimated by analysts. The forecast for third-quarter revenue was set between $736 million and $737 million, also higher than expected.
Adjusted earnings per share for the second quarter were $0.29, beating expectations of $0.27. Annual adjusted earnings guidance was increased to $1.25 to $1.26 per share from $1.19 to $1.20 per share.
Separately, Microchip Technology forecast upbeat second-quarter revenue and profit, driven by strong demand in AI, industrial, automotive, and aerospace sectors, causing its shares to advance 8.5% premarket. Collaboration software maker Atlassian jumped 28.5% after forecasting quarterly revenue above estimates. These results lifted broader chip and software sectors, with Marvell, Micron, Palo Alto, and Service Now also seeing gains.
The U.S. is awaiting the release of July non-farm payrolls figures, which could influence the interest-rate outlook. The White House also imposed a 15% tariff on polysilicon products to support domestic production.