Fastly Reports 23% Revenue Growth in Q4
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 16 hours ago
0mins
Should l Buy FSLY?
Source: NASDAQ.COM
- Significant Revenue Growth: Fastly's Q4 revenue rose 23% year-over-year to approximately $172.6 million, marking a notable acceleration from 15% growth in Q3, reflecting successful customer engagement and enhancing its market competitiveness.
- Improved Customer Retention: The company's net retention rate increased to 110%, up from 106% in the previous quarter and 102% a year ago, indicating rising spending from existing customers and further solidifying its revenue base.
- Conservative Future Outlook: Management expects full-year 2026 revenue to be between $700 million and $720 million, representing about 14% year-over-year growth, which, while slower than the 23% growth in Q4, still exceeds 2024's growth rate, demonstrating a cautious approach to future performance.
- Increased Capital Expenditures: The company anticipates that infrastructure capital expenditures will account for 10% to 12% of revenue in 2026, up from 5% in 2025, indicating the need for ongoing investment to maintain its competitive edge in the global edge computing network amid the AI era.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy FSLY?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on FSLY
Wall Street analysts forecast FSLY stock price to fall
10 Analyst Rating
2 Buy
7 Hold
1 Sell
Hold
Current: 21.830
Low
10.00
Averages
11.70
High
14.00
Current: 21.830
Low
10.00
Averages
11.70
High
14.00
About FSLY
Fastly, Inc. provides a programmable edge cloud platform that helps the world’s brands deliver online experiences through edge compute, delivery, security, and observability offerings, improving site performance, and enhancing security at a global scale. The Company enables developers to deliver secure Websites and apps. The edge cloud is a category of Infrastructure as a Service (IaaS) that enables developers to build, secure, and deliver digital experiences at the edge of the Internet. The Company’s products and services includes Programmable Edge Platform, Network Services, Security, Compute, Observability, and Services. Its Network services include content delivery network, video / streaming, load balancing, image optimization, and origin connect. Its Security service includes Next-Gen WAF, bot management, DDoS protection, and others. The Company’s professional services include network services, managed security service, and response security service.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Fastly Reports 23% Revenue Growth in Q4
- Significant Revenue Growth: Fastly's Q4 revenue rose 23% year-over-year to approximately $172.6 million, marking a notable acceleration from 15% growth in Q3, reflecting successful customer engagement and enhancing its market competitiveness.
- Improved Customer Retention: The company's net retention rate increased to 110%, up from 106% in the previous quarter and 102% a year ago, indicating rising spending from existing customers and further solidifying its revenue base.
- Conservative Future Outlook: Management expects full-year 2026 revenue to be between $700 million and $720 million, representing about 14% year-over-year growth, which, while slower than the 23% growth in Q4, still exceeds 2024's growth rate, demonstrating a cautious approach to future performance.
- Increased Capital Expenditures: The company anticipates that infrastructure capital expenditures will account for 10% to 12% of revenue in 2026, up from 5% in 2025, indicating the need for ongoing investment to maintain its competitive edge in the global edge computing network amid the AI era.
See More
Fastly Stock Soars 112% Amid Revenue Growth
- Accelerating Revenue Growth: Fastly's Q4 revenue surged 23% year-over-year to $172.6 million, significantly up from 15% growth in Q3, reflecting successful transformation efforts and the positive impact of AI, enhancing its market competitiveness.
- Improved Customer Retention: The company's net retention rate rose to 110%, up from 106% in the previous quarter, indicating increased spending from existing customers, which further solidifies its revenue base and future growth potential.
- Cautious Future Outlook: Management expects revenue for 2026 to be between $700 million and $720 million, representing approximately 14% year-over-year growth, but this deceleration from the 23% growth in Q4 suggests a cautious stance towards market conditions.
- Profitability Challenges: Despite achieving non-GAAP profitability and positive free cash flow in Q4, Fastly reported a GAAP net loss of $15.5 million, and with infrastructure capital expenditures projected to be 10% to 12% of revenue in 2026, future profitability remains uncertain.
See More
Fastly (FSLY.US) Director Plans to Sell $5.37 Million in Common Stock, According to Form 144
Share Sale Announcement: The Perartur Bergman Revocable Trust plans to sell 245.77K shares of its common stock in Fastly (FSLY.US) on March 10, with an estimated market value of around $5.37 million.
Reduction in Holdings: The trust has decreased its shareholding in Fastly by 1.71 million shares since December 15, 2025, with a total value of approximately $28.19 million.
See More
Amazon Temporarily Blocks Perplexity's Access to Its Site
- Legal Proceedings Update: A federal judge has temporarily blocked startup Perplexity from accessing Amazon's site via its Comet AI browser, reflecting Amazon's firm stance on platform protection, which could impact Perplexity's market strategy.
- Evidence Support: Judge Maxine Chesney noted that Amazon provided 'strong evidence' of unauthorized access by Perplexity, with the company spending over $5,000 to respond, highlighting its commitment to customer data security.
- Security Risk Warning: Amazon's lawsuit indicated that Perplexity's AI agents pose security risks to customer data as they can operate within protected systems requiring passwords, potentially diminishing customer trust and affecting Amazon's user base.
- Advertising Business Challenges: Amazon stated that Perplexity's agents create challenges for its advertising business, necessitating the development of new mechanisms to identify and exclude automated traffic, ensuring advertisers only pay for genuine user impressions, which could increase operational costs and impact profitability.
See More
Amazon Plans to Address Recent System Outages
- Frequent System Failures: Amazon experienced four high-severity outages in the past week, which degraded the availability of its website and app, impacting user experience and prompting the company to hold a technical meeting to investigate the root causes.
- Technical Meeting Scheduled: The 'This Week in Stores Tech' meeting will take place on Tuesday, focusing on analyzing the reasons behind the outages, including AI-assisted coding errors, underscoring the company's commitment to restoring a strong availability posture.
- AI Spending Amid Layoffs: While Amazon plans to invest $200 billion in infrastructure in 2023 to meet the demands of AI services, it continues to conduct mass layoffs, cutting approximately 16,000 employees in January, highlighting the tension between expansion and cost control.
- Strengthening Safety Measures: To prevent future outages, Amazon will reinforce the review process for generative AI-assisted production changes, requiring senior engineers to oversee changes made by junior staff, aiming to enhance safety in the retail experience through controlled friction.
See More
Fastly Shares Surge 145% Amid AI Demand and Strong Earnings
- Earnings Beat: Fastly reported a record fourth-quarter revenue of $172.6 million, a 23% year-over-year increase, with security revenue climbing 32%, indicating strong demand for AI-driven internet traffic management tools.
- Improved Profitability: The company posted a non-GAAP operating income of $21.2 million, a significant turnaround from a loss in the prior year, and guided for full-year 2026 revenue between $700 million and $720 million, reflecting management's confidence in future growth.
- Short Interest Volatility: Fastly has a short interest of approximately 12%, equating to about 17.09 million shares sold short, which may contribute to increased volatility as the stock approaches its 52-week high, putting pressure on short sellers to cover.
- Strong Technicals: Fastly's stock has surged from around $5 at its 52-week low to over $20, trading well above its 20-day, 50-day, and 200-day moving averages, indicating sustained bullish momentum despite the absence of new company-specific news.
See More
Fastly Reports 23% Revenue Growth in Q4
- Significant Revenue Growth: Fastly's Q4 revenue rose 23% year-over-year to approximately $172.6 million, marking a notable acceleration from 15% growth in Q3, reflecting successful customer engagement and enhancing its market competitiveness.
- Improved Customer Retention: The company's net retention rate increased to 110%, up from 106% in the previous quarter and 102% a year ago, indicating rising spending from existing customers and further solidifying its revenue base.
- Conservative Future Outlook: Management expects full-year 2026 revenue to be between $700 million and $720 million, representing about 14% year-over-year growth, which, while slower than the 23% growth in Q4, still exceeds 2024's growth rate, demonstrating a cautious approach to future performance.
- Increased Capital Expenditures: The company anticipates that infrastructure capital expenditures will account for 10% to 12% of revenue in 2026, up from 5% in 2025, indicating the need for ongoing investment to maintain its competitive edge in the global edge computing network amid the AI era.
See More
Fastly Stock Soars 112% Amid Revenue Growth
- Accelerating Revenue Growth: Fastly's Q4 revenue surged 23% year-over-year to $172.6 million, significantly up from 15% growth in Q3, reflecting successful transformation efforts and the positive impact of AI, enhancing its market competitiveness.
- Improved Customer Retention: The company's net retention rate rose to 110%, up from 106% in the previous quarter, indicating increased spending from existing customers, which further solidifies its revenue base and future growth potential.
- Cautious Future Outlook: Management expects revenue for 2026 to be between $700 million and $720 million, representing approximately 14% year-over-year growth, but this deceleration from the 23% growth in Q4 suggests a cautious stance towards market conditions.
- Profitability Challenges: Despite achieving non-GAAP profitability and positive free cash flow in Q4, Fastly reported a GAAP net loss of $15.5 million, and with infrastructure capital expenditures projected to be 10% to 12% of revenue in 2026, future profitability remains uncertain.
See More
Fastly (FSLY.US) Director Plans to Sell $5.37 Million in Common Stock, According to Form 144
Share Sale Announcement: The Perartur Bergman Revocable Trust plans to sell 245.77K shares of its common stock in Fastly (FSLY.US) on March 10, with an estimated market value of around $5.37 million.
Reduction in Holdings: The trust has decreased its shareholding in Fastly by 1.71 million shares since December 15, 2025, with a total value of approximately $28.19 million.
See More
Amazon Temporarily Blocks Perplexity's Access to Its Site
- Legal Proceedings Update: A federal judge has temporarily blocked startup Perplexity from accessing Amazon's site via its Comet AI browser, reflecting Amazon's firm stance on platform protection, which could impact Perplexity's market strategy.
- Evidence Support: Judge Maxine Chesney noted that Amazon provided 'strong evidence' of unauthorized access by Perplexity, with the company spending over $5,000 to respond, highlighting its commitment to customer data security.
- Security Risk Warning: Amazon's lawsuit indicated that Perplexity's AI agents pose security risks to customer data as they can operate within protected systems requiring passwords, potentially diminishing customer trust and affecting Amazon's user base.
- Advertising Business Challenges: Amazon stated that Perplexity's agents create challenges for its advertising business, necessitating the development of new mechanisms to identify and exclude automated traffic, ensuring advertisers only pay for genuine user impressions, which could increase operational costs and impact profitability.
See More
Amazon Plans to Address Recent System Outages
- Frequent System Failures: Amazon experienced four high-severity outages in the past week, which degraded the availability of its website and app, impacting user experience and prompting the company to hold a technical meeting to investigate the root causes.
- Technical Meeting Scheduled: The 'This Week in Stores Tech' meeting will take place on Tuesday, focusing on analyzing the reasons behind the outages, including AI-assisted coding errors, underscoring the company's commitment to restoring a strong availability posture.
- AI Spending Amid Layoffs: While Amazon plans to invest $200 billion in infrastructure in 2023 to meet the demands of AI services, it continues to conduct mass layoffs, cutting approximately 16,000 employees in January, highlighting the tension between expansion and cost control.
- Strengthening Safety Measures: To prevent future outages, Amazon will reinforce the review process for generative AI-assisted production changes, requiring senior engineers to oversee changes made by junior staff, aiming to enhance safety in the retail experience through controlled friction.
See More
Fastly Shares Surge 145% Amid AI Demand and Strong Earnings
- Earnings Beat: Fastly reported a record fourth-quarter revenue of $172.6 million, a 23% year-over-year increase, with security revenue climbing 32%, indicating strong demand for AI-driven internet traffic management tools.
- Improved Profitability: The company posted a non-GAAP operating income of $21.2 million, a significant turnaround from a loss in the prior year, and guided for full-year 2026 revenue between $700 million and $720 million, reflecting management's confidence in future growth.
- Short Interest Volatility: Fastly has a short interest of approximately 12%, equating to about 17.09 million shares sold short, which may contribute to increased volatility as the stock approaches its 52-week high, putting pressure on short sellers to cover.
- Strong Technicals: Fastly's stock has surged from around $5 at its 52-week low to over $20, trading well above its 20-day, 50-day, and 200-day moving averages, indicating sustained bullish momentum despite the absence of new company-specific news.
See More
