In a move designed to capture a significant new market segment, Cloudflare has announced a pivotal partnership with global payments processor Mastercard. The collaboration aims to deliver enterprise-grade cybersecurity solutions to small and medium-sized enterprises (SMEs), a sector often underserved due to resource constraints. This strategic initiative comes as the company reports record quarterly performance and capitalizes on the explosive growth of AI-driven internet traffic.
Operational Momentum and the AI Traffic Surge
Cloudflare’s strategic partnership is unveiled against a backdrop of robust operational and financial strength. The company’s fourth-quarter 2025 results revealed a 34% year-over-year revenue increase to $614.5 million. A landmark achievement within this period was the signing of the largest single contract in Cloudflare’s history, valued at $42.5 million annually.
CEO Matthew Prince attributes a substantial portion of this growth to the rise of what he terms the “Agentic Internet.” This concept refers to the rapidly expanding volume of data traffic generated by autonomous AI agents. Cloudflare reported that this specific type of traffic doubled in January 2026 alone, positioning the company’s infrastructure as a critical backbone for the next wave of automated internet services.
Bridging the Security Divide for Smaller Businesses
The core of the Mastercard alliance integrates Cloudflare’s global security and performance network with Mastercard’s advanced cyber intelligence capabilities. The joint offering is an integrated platform providing real-time risk monitoring and automated defensive measures, including Web Application Firewall (WAF) protection.
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This solution is particularly targeted at smaller organizations that typically lack the budget and personnel to maintain dedicated security operations centers. By offering a centralized dashboard for monitoring digital assets and responding to threats, the partnership seeks to close a critical vulnerability gap in the SME digital ecosystem.
Market Performance and Forward Guidance
Investors have responded favorably to Cloudflare’s recent trajectory. Although shares experienced a minor decline of 0.43% last Friday, the equity has advanced approximately 12.2% over the preceding 30-day period. The stock currently trades at €163.12.
This positive sentiment is echoed by analysts. Firms like Oppenheimer have reaffirmed their optimistic outlook, maintaining price targets significantly above the current trading level. For the full 2026 fiscal year, Cloudflare’s management has provided revenue guidance in the range of $2.785 billion to $2.795 billion.
The company’s growth strategy now rests on a dual foundation: penetrating the vast SME market through strategic partnerships and maintaining its leadership role in supporting the infrastructure demands of artificial intelligence.
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