Fastly Reports Record Q4 Results, Stock Surges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 hours ago
0mins
Should l Buy FSLY?
Source: Fool
- Significant Revenue Growth: Fastly's Q4 revenue increased by 23% year-over-year to $172.6 million, with adjusted EPS at $0.12, indicating that operating leverage is beginning to take effect after years of inconsistent performance, suggesting potential for improved profitability.
- AI Cloud Partnership: The company announced a surprise AI cloud partnership, shifting market perception of Fastly's role in digital infrastructure, as it is now viewed as a beneficiary of AI-driven edge traffic growth, which has strategic implications for its future.
- Optimistic 2026 Outlook: Management's revenue guidance for 2026 ranges from $700 million to $720 million, indicating that recent gains are likely sustainable, which further boosts investor confidence and drives stock price increases.
- Surge in Trading Volume: Fastly's trading volume reached 55 million shares, approximately 710% above its three-month average of 6.8 million shares, reflecting strong investor interest and positive reactions to the company's outlook.
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Analyst Views on FSLY
Wall Street analysts forecast FSLY stock price to fall
10 Analyst Rating
2 Buy
7 Hold
1 Sell
Hold
Current: 16.040
Low
10.00
Averages
11.70
High
14.00
Current: 16.040
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's Q4 Earnings Exceed Expectations, Shares Surge 72%
- Significant Revenue Growth: Fastly's Q4 revenue rose 23% year-over-year to $172.6 million, driven by a 19% increase in network services sales to $130.8 million and a 32% surge in security revenue to $35.4 million, showcasing the company's strong performance in the cloud platform market.
- Improved Profitability: Fastly reported an adjusted net income of $20.1 million, compared to a loss of $2.4 million in the same quarter last year, with adjusted earnings per share reaching $0.12, significantly exceeding Wall Street expectations and indicating a marked improvement in profitability.
- Optimistic Future Outlook: Fastly anticipates revenue growth of approximately 14% to $710 million by 2026, with operating income projected at $55 million and adjusted earnings per share at $0.26, reflecting the company's confidence in future growth, particularly driven by AI.
- Positive Market Reaction: Fastly's stock surged 72.29% to close at $16.04, resulting in a market capitalization of $1.4 billion, demonstrating strong investor confidence and market recognition of the company's future potential.
See More
Fastly Reports Record Q4 Results, Stock Surges
- Significant Revenue Growth: Fastly's Q4 revenue increased by 23% year-over-year to $172.6 million, with adjusted EPS at $0.12, indicating that operating leverage is beginning to take effect after years of inconsistent performance, suggesting potential for improved profitability.
- AI Cloud Partnership: The company announced a surprise AI cloud partnership, shifting market perception of Fastly's role in digital infrastructure, as it is now viewed as a beneficiary of AI-driven edge traffic growth, which has strategic implications for its future.
- Optimistic 2026 Outlook: Management's revenue guidance for 2026 ranges from $700 million to $720 million, indicating that recent gains are likely sustainable, which further boosts investor confidence and drives stock price increases.
- Surge in Trading Volume: Fastly's trading volume reached 55 million shares, approximately 710% above its three-month average of 6.8 million shares, reflecting strong investor interest and positive reactions to the company's outlook.
See More
Fastly Reports Record Q4 Results, Stock Surges
- Significant Growth: Fastly's Q4 revenue increased by 23% year-over-year to $172.6 million, with adjusted EPS at $0.12, indicating that operating leverage is beginning to take effect after years of inconsistent performance, enhancing profitability.
- Stock Surge: The stock price rose 13.84% on Friday to close at $18.26, with trading volume hitting 55 million shares, approximately 710% above its three-month average, reflecting strong investor confidence in the company's growth potential.
- Optimistic 2026 Outlook: Management projects 2026 revenue between $700 million and $720 million, suggesting that recent growth momentum is likely sustainable, particularly driven by AI cloud partnerships, which are shifting market perceptions of Fastly's role in digital infrastructure.
- AI Traffic Driven: With increasing demand for AI-related traffic, Fastly is being viewed as a beneficiary of edge traffic growth, a shift that could support ongoing revenue and margin improvements, ensuring the company maintains a competitive edge in a rapidly evolving market.
See More
Fastly Stock Rises on AI Transformation Optimism
- Strong Earnings Report: Fastly reported quarterly revenue of $172.6 million, reflecting a 23% year-over-year increase, with earnings per share exceeding analyst expectations, marking a significant milestone in the company's transformation towards AI, which has attracted considerable investor interest.
- Security Revenue Growth: The company's security revenue grew by 32%, driven by products designed to tackle challenges posed by AI traffic, further solidifying Fastly's market position and demonstrating its adaptability in emerging technology sectors.
- Technical Strength Signals: Fastly's stock is currently trading 68.9% above its 20-day simple moving average and 65.2% above its 100-day moving average, indicating robust short-term and medium-term strength, although the RSI at 81.56 suggests overbought conditions, warranting caution for potential pullbacks.
- Analyst Cautious Outlook: Despite a momentum score of 96.83 indicating strong market performance, analysts maintain a Hold rating with an average price target of $10.64, reflecting a cautious stance on future growth prospects.
See More
Movers in the Market: Applied Materials, Arista, Coinbase, DraftKings, Expedia, Rivian, Roku, Pinterest, and Others
- Market Overview: Stock futures are trading mostly lower as investors express caution.
- Investor Concerns: There is heightened anxiety regarding artificial intelligence developments.
- Upcoming Data: Investors are awaiting the consumer-price inflation report for January.
- Market Sentiment: Overall market sentiment remains tense as economic indicators are closely monitored.
See More
Fastly Reports Record Q4 Earnings, Stock Surges to All-Time High
- Earnings Beat: Fastly reported Q4 revenue of $172.6 million and adjusted EPS of $0.12, both exceeding analyst expectations, indicating accelerated growth in revenue and profitability, which solidifies its position in the edge cloud market.
- Stock Surge: Fastly's stock soared 72% on Thursday to close at $16.04, marking its best single-day performance ever, reflecting strong market recognition of its robust earnings and optimistic outlook for 2026, likely attracting more investor interest.
- Analyst Target Increases: Analysts from RBC Capital, Piper Sandler, and DA Davidson raised their price targets for Fastly to $12, $14, and $13 respectively, indicating confidence in its future growth potential despite showing some downside risk.
- AI Traffic Growth: Fastly's AI-driven traffic is significantly increasing, with CEO Kip Compton highlighting that AI applications are driving the company towards faster growth and profitability, suggesting vast opportunities in large language models and agentic AI in the future.
See More
Fastly's Q4 Earnings Exceed Expectations, Shares Surge 72%
- Significant Revenue Growth: Fastly's Q4 revenue rose 23% year-over-year to $172.6 million, driven by a 19% increase in network services sales to $130.8 million and a 32% surge in security revenue to $35.4 million, showcasing the company's strong performance in the cloud platform market.
- Improved Profitability: Fastly reported an adjusted net income of $20.1 million, compared to a loss of $2.4 million in the same quarter last year, with adjusted earnings per share reaching $0.12, significantly exceeding Wall Street expectations and indicating a marked improvement in profitability.
- Optimistic Future Outlook: Fastly anticipates revenue growth of approximately 14% to $710 million by 2026, with operating income projected at $55 million and adjusted earnings per share at $0.26, reflecting the company's confidence in future growth, particularly driven by AI.
- Positive Market Reaction: Fastly's stock surged 72.29% to close at $16.04, resulting in a market capitalization of $1.4 billion, demonstrating strong investor confidence and market recognition of the company's future potential.
See More
Fastly Reports Record Q4 Results, Stock Surges
- Significant Revenue Growth: Fastly's Q4 revenue increased by 23% year-over-year to $172.6 million, with adjusted EPS at $0.12, indicating that operating leverage is beginning to take effect after years of inconsistent performance, suggesting potential for improved profitability.
- AI Cloud Partnership: The company announced a surprise AI cloud partnership, shifting market perception of Fastly's role in digital infrastructure, as it is now viewed as a beneficiary of AI-driven edge traffic growth, which has strategic implications for its future.
- Optimistic 2026 Outlook: Management's revenue guidance for 2026 ranges from $700 million to $720 million, indicating that recent gains are likely sustainable, which further boosts investor confidence and drives stock price increases.
- Surge in Trading Volume: Fastly's trading volume reached 55 million shares, approximately 710% above its three-month average of 6.8 million shares, reflecting strong investor interest and positive reactions to the company's outlook.
See More
Fastly Reports Record Q4 Results, Stock Surges
- Significant Growth: Fastly's Q4 revenue increased by 23% year-over-year to $172.6 million, with adjusted EPS at $0.12, indicating that operating leverage is beginning to take effect after years of inconsistent performance, enhancing profitability.
- Stock Surge: The stock price rose 13.84% on Friday to close at $18.26, with trading volume hitting 55 million shares, approximately 710% above its three-month average, reflecting strong investor confidence in the company's growth potential.
- Optimistic 2026 Outlook: Management projects 2026 revenue between $700 million and $720 million, suggesting that recent growth momentum is likely sustainable, particularly driven by AI cloud partnerships, which are shifting market perceptions of Fastly's role in digital infrastructure.
- AI Traffic Driven: With increasing demand for AI-related traffic, Fastly is being viewed as a beneficiary of edge traffic growth, a shift that could support ongoing revenue and margin improvements, ensuring the company maintains a competitive edge in a rapidly evolving market.
See More
Fastly Stock Rises on AI Transformation Optimism
- Strong Earnings Report: Fastly reported quarterly revenue of $172.6 million, reflecting a 23% year-over-year increase, with earnings per share exceeding analyst expectations, marking a significant milestone in the company's transformation towards AI, which has attracted considerable investor interest.
- Security Revenue Growth: The company's security revenue grew by 32%, driven by products designed to tackle challenges posed by AI traffic, further solidifying Fastly's market position and demonstrating its adaptability in emerging technology sectors.
- Technical Strength Signals: Fastly's stock is currently trading 68.9% above its 20-day simple moving average and 65.2% above its 100-day moving average, indicating robust short-term and medium-term strength, although the RSI at 81.56 suggests overbought conditions, warranting caution for potential pullbacks.
- Analyst Cautious Outlook: Despite a momentum score of 96.83 indicating strong market performance, analysts maintain a Hold rating with an average price target of $10.64, reflecting a cautious stance on future growth prospects.
See More
Movers in the Market: Applied Materials, Arista, Coinbase, DraftKings, Expedia, Rivian, Roku, Pinterest, and Others
- Market Overview: Stock futures are trading mostly lower as investors express caution.
- Investor Concerns: There is heightened anxiety regarding artificial intelligence developments.
- Upcoming Data: Investors are awaiting the consumer-price inflation report for January.
- Market Sentiment: Overall market sentiment remains tense as economic indicators are closely monitored.
See More
Fastly Reports Record Q4 Earnings, Stock Surges to All-Time High
- Earnings Beat: Fastly reported Q4 revenue of $172.6 million and adjusted EPS of $0.12, both exceeding analyst expectations, indicating accelerated growth in revenue and profitability, which solidifies its position in the edge cloud market.
- Stock Surge: Fastly's stock soared 72% on Thursday to close at $16.04, marking its best single-day performance ever, reflecting strong market recognition of its robust earnings and optimistic outlook for 2026, likely attracting more investor interest.
- Analyst Target Increases: Analysts from RBC Capital, Piper Sandler, and DA Davidson raised their price targets for Fastly to $12, $14, and $13 respectively, indicating confidence in its future growth potential despite showing some downside risk.
- AI Traffic Growth: Fastly's AI-driven traffic is significantly increasing, with CEO Kip Compton highlighting that AI applications are driving the company towards faster growth and profitability, suggesting vast opportunities in large language models and agentic AI in the future.
See More
