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SAN FRANCISCO - Cloudflare, Inc. (NYSE:NET), a $68 billion market cap company with impressive revenue growth of 27% year-over-year, announced new capabilities for its Zero Trust platform, Cloudflare One, designed to help organizations securely adopt generative AI applications. According to InvestingPro data, the company maintains strong gross profit margins of 76%.
The new features, collectively referred to as AI Security Posture Management (AI-SPM), enable businesses to monitor and control AI usage across their organizations while maintaining security standards. The company’s strong financial position, with liquid assets exceeding short-term obligations and a healthy current ratio of 5.14, supports its continued innovation in the cybersecurity space.
According to the company, the new tools will allow security teams to discover how employees are using AI through a Shadow AI Report that provides insights into which AI applications are being accessed and by whom.
The update also includes features to protect against unauthorized AI use by enforcing policies at the network edge, ensuring consistent security regardless of employee location.
Cloudflare’s AI Prompt Protection aims to identify potentially risky employee interactions with AI models by flagging concerning prompts and responses. The system can warn employees or block them from submitting sensitive data to untrusted AI providers.
Additionally, the Zero Trust MCP Server Control consolidates all AI model calls to external tools into a single dashboard, allowing security teams to set user-level policies for increased control.
"Cloudflare is the best place to help any business roll out AI securely. We are the only company today that can offer the security of a Zero Trust platform with a full set of AI and inference development products," said Matthew Prince, CEO and co-founder at Cloudflare, in a press release statement.
The company stated these features are now available to customers, though it did not disclose pricing details.
Cloudflare’s announcement comes as organizations increasingly adopt AI tools across various departments while facing challenges in maintaining security and privacy standards during implementation. The stock has shown remarkable performance with an 82% gain year-to-date, though InvestingPro analysis suggests it may be trading above its Fair Value. For deeper insights into Cloudflare’s financial health and growth prospects, including 15 additional exclusive ProTips, check out the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Cloudflare reported its financial results for the second quarter of 2025, showcasing strong performance that surpassed analyst expectations. The company achieved earnings per share of $0.21, exceeding the forecasted $0.18, which represents a 16.67% surprise. Revenue for the quarter reached $512.3 million, surpassing the consensus estimate of $501.0 million. Following these results, Citizens JMP raised its price target for Cloudflare to $250 from $225, maintaining a Market Outperform rating. The increase in the price target reflects the company’s robust earnings performance. These developments highlight Cloudflare’s financial strength and positive reception from analysts.
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