Cloudflare (ticker: NET), the leading cloud services provider, saw its stock jump 9% on Friday after delivering strong first-quarter results and securing two record-setting contracts. The company’s performance has impressed investors, pushing its stock up approximately 25% in 2025 so far.

Strong Revenue Growth Beats Expectations

In the first quarter of 2025, Cloudflare earned a revenue of $479.1 million, 27% higher than last year’s same period. Analysts’ expectations of about $10 million were surpassed, according to Visible Alpha. Nonetheless, adjusted earnings per share came out only at $0.16, a tad below forecast by a cent, despite aggressive top-line growth.

Historic Contracts Fuel Optimism

As Matthew Prince, the CEO and co-founder of Cloudflare said, the largest contract in the history of the company has been signed: a deal upwards of $100 million, powered by the Workers developer platform, which allows developers to build and run applications at the edge of the internet. Cloudflare has also signed the longest term to date for a SASE (Secure Access Service Edge), one of the cardinal offerings in its suite of cybersecurity and network services.

Prince stated,

“Cloudflare has the scale, the technology, and the team to capture the massive opportunity ahead of us.”

His comments reflect growing confidence in the company’s strategic direction and market position.

2025 Full-Year Outlook

Cloudflare expects full-year adjusted EPS of $0.79 to $0.80, and revenue of $2.090 billion to $2.094 billion. The outlook is nearly similar to Wall Street consensus, with EPS at $0.80 and revenue at $2.095 billion, according to Visible Alpha analysts.

Market Impact and Investor Confidence

An impressive revenue performance, historic contract wins, and a positive outlook have gone a long way toward cementing confidence among investors. Cloudflare appears to have taken on a sort of bold blitz against edge computing and enterprise cybersecurity. It is claiming some meant-to-be-versatile cloud infrastructure turf. Escalating demand for cloud computing and edge solutions seems to have given Cloudflare’s growth strategy, characterized by scalability, innovation, and long-term partnerships, much momentum among customers and investors.