Shares of Cloudflare, Inc. (NET) surged 10.49% in pre-market trading on Friday, following the company's release of exceptional third-quarter 2025 financial results and an optimistic future outlook. The web infrastructure and security provider significantly outperformed analyst expectations, demonstrating robust growth and improved profitability.

Cloudflare reported Q3 revenue of $562.027 million, handily beating the analyst estimate of $544.8 million. The company's adjusted earnings per share (EPS) came in at $0.27, surpassing the expected $0.23. CEO Matthew Prince highlighted that revenue growth accelerated for the second consecutive quarter, reaching an impressive 31% year-over-year.

Adding to the positive sentiment, Cloudflare provided an encouraging outlook for both the fourth quarter and the full fiscal year. The company projects Q4 revenue between $588.5 million and $589.5 million, while the full-year revenue forecast stands at $2,142 million to $2,143 million. Furthermore, Cloudflare raised its full-year adjusted EPS guidance to $0.91, up from the previous range of $0.85-$0.86, signaling confidence in its ability to maintain profitability while investing in growth.

The strong financial performance and upbeat guidance prompted several analysts to raise their target prices for Cloudflare stock. Notably, RBC increased its target price to $265 from $250, Jefferies raised it to $250 from $225, Scotiabank upped its target to $255 from $200, and Piper Sandler boosted its projection to $249 from $224. These revisions reflect growing confidence in Cloudflare's market position and future prospects in the cloud security and infrastructure space.