Fastly Reports Strong Q1 2026 Earnings with Revenue Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 48 minutes ago
0mins
Should l Buy FSLY?
Source: seekingalpha
- Significant Revenue Growth: Fastly reported $173 million in revenue for Q1 2026, marking a 20% year-over-year increase and nearing the high end of its guidance range, indicating strong market performance and sustained customer demand.
- Accelerated Security Business: The security segment grew by 47%, accounting for 22% of total revenue, highlighting robust demand for the company's cybersecurity offerings and further solidifying its market position.
- Stable Network Services Performance: Network services revenue reached $126.2 million, growing 11% year-over-year, although the growth rate slowed, it remains double the market growth rate, reflecting the company's competitive edge in delivering high-performance services.
- Optimistic Outlook: The company raised its full-year 2026 revenue guidance to a range of $710 million to $725 million, with Q2 revenue expected between $170 million and $176 million, demonstrating management's confidence in future growth.
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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: 32.360
Low
10.00
Averages
11.70
High
14.00
Current: 32.360
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 Strong Q1 2026 Earnings with Revenue Growth
- Significant Revenue Growth: Fastly reported $173 million in revenue for Q1 2026, marking a 20% year-over-year increase and nearing the high end of its guidance range, indicating strong market performance and sustained customer demand.
- Accelerated Security Business: The security segment grew by 47%, accounting for 22% of total revenue, highlighting robust demand for the company's cybersecurity offerings and further solidifying its market position.
- Stable Network Services Performance: Network services revenue reached $126.2 million, growing 11% year-over-year, although the growth rate slowed, it remains double the market growth rate, reflecting the company's competitive edge in delivering high-performance services.
- Optimistic Outlook: The company raised its full-year 2026 revenue guidance to a range of $710 million to $725 million, with Q2 revenue expected between $170 million and $176 million, demonstrating management's confidence in future growth.
See More
Mixed Earnings Reports from Multiple Companies
- ARM Holdings Earnings Beat: ARM Holdings reported fourth-quarter adjusted earnings of 60 cents and revenue of $1.49 billion, surpassing analyst expectations of 58 cents and $1.47 billion, leading to a 6% stock increase, indicating strong market demand and growth potential.
- DoorDash Optimistic Guidance: DoorDash forecasts second-quarter marketplace gross order value between $32.4 billion and $33.4 billion, exceeding the $32.43 billion expected by analysts, with first-quarter earnings of 42 cents per share beating the anticipated 36 cents, resulting in a 14% stock surge, reflecting robust performance in a competitive delivery market.
- Zillow Revenue Miss: Zillow's first-quarter residential revenue of $450 million fell short of the $454.2 million estimate, causing shares to drop nearly 7%, despite overall performance exceeding expectations, which dampened market confidence in future growth.
- Fortinet Raises Guidance: Fortinet increased its full-year billings guidance to a range of $8.8 billion to $9.1 billion, up from the previous forecast of $8.4 billion to $8.6 billion, leading to a 16% stock increase, showcasing strong growth and confidence in the cybersecurity sector.
See More
Fastly Q1 Earnings Beat Expectations with Significant Revenue Growth
- Strong Earnings Report: Fastly reported Q1 non-GAAP EPS of $0.13, beating expectations by $0.04, indicating ongoing improvements in profitability and boosting investor confidence.
- Robust Revenue Growth: Total revenue reached $173.02 million, a 19.7% year-over-year increase, with Network Services revenue at $126.2 million and Security revenue growing by 47%, highlighting strong market demand in key business areas.
- Optimistic Future Outlook: The company projects Q2 2026 revenue between $170.0 million and $176.0 million, with full-year revenue expectations of $710.0 million to $725.0 million, reflecting management's confidence in sustained growth.
- Record RPO: The recorded RPO reached $369 million, growing 63% year-over-year, demonstrating long-term customer commitment to Fastly's services and further solidifying the company's market position.
See More
Fastly Shares Surge 17.72% Ahead of Positive Earnings Forecast
- Significant Share Price Increase: Fastly's stock surged 17.72% on Tuesday to close at $32.36, as investors actively loaded up ahead of the earnings report, indicating strong market optimism regarding the company's performance.
- Revenue Growth Targets: The company anticipates a revenue increase of 16% to 20.4% in Q1, projecting between $168 million and $174 million, a notable rise from $144.5 million in the same period last year, reflecting robust business recovery.
- Improved Profitability Outlook: Fastly expects to swing to a non-GAAP net income per share of $0.07 to $0.10, compared to a net loss of $0.05 per share in the prior year, showcasing a significant enhancement in profitability.
- Anti-Piracy Collaboration: Fastly has partnered with Spain's Laliga to leverage AI in developing a real-time detection system for illegal streaming, aiming to combat piracy and enhance the company's position in digital content protection.
See More
Compton Sells 29,533 Shares of Fastly Stock
- Transaction Overview: Compton sold 29,533 shares of Fastly stock over two days on April 16 and 17, 2026, for a total value of approximately $720,000 based on a weighted average price of $24.39 per share, indicating a partial shift in his holdings.
- Ownership Change: This sale represented 2.54% of Compton's direct holdings, leaving him with 1,133,895 shares post-transaction, which signifies that despite the sale, he retains significant control over the company.
- Nature of Sale: The transaction involved only direct holdings with no indirect dispositions or derivative securities, indicating that Compton's decision was primarily driven by tax considerations and a pre-set trading plan rather than market sentiment.
- Market Reaction: While Compton's sale might be interpreted as a signal, analysis suggests that its actual impact is limited, and investors should focus on more critical metrics such as Fastly's revenue growth and customer concentration risks rather than a single executive sale.
See More
Fastly CEO Sells Nearly 30,000 Shares of Stock
- Transaction Overview: Fastly CEO Charles Lacey Compton III sold 29,533 shares of common stock in multiple open-market transactions on April 16 and 17, 2026, for a total value of approximately $720,000, indicating a reduction in holdings at elevated price levels.
- Holding Change Analysis: Post-transaction, Compton retains 1,133,895 shares, and while the sale represents 2.54% of his direct holdings, his overall direct ownership has decreased by 17.67% since January 2026, reflecting ongoing engagement with the company's equity.
- Market Context Impact: As of April 17, 2026, Fastly shares delivered a total return of 353.82% over the past year, with the transaction executed at a weighted average price of $24.39, indicating the sale occurred amid significant price appreciation.
- Compliance of Trading Plan: The stock sale was conducted under a Rule 10b5-1 trading plan adopted on August 27, 2025, with a portion of the shares sold to cover tax obligations related to RSU vesting, demonstrating that this was a routine market transaction rather than a discretionary decision.
See More
Fastly Reports Strong Q1 2026 Earnings with Revenue Growth
- Significant Revenue Growth: Fastly reported $173 million in revenue for Q1 2026, marking a 20% year-over-year increase and nearing the high end of its guidance range, indicating strong market performance and sustained customer demand.
- Accelerated Security Business: The security segment grew by 47%, accounting for 22% of total revenue, highlighting robust demand for the company's cybersecurity offerings and further solidifying its market position.
- Stable Network Services Performance: Network services revenue reached $126.2 million, growing 11% year-over-year, although the growth rate slowed, it remains double the market growth rate, reflecting the company's competitive edge in delivering high-performance services.
- Optimistic Outlook: The company raised its full-year 2026 revenue guidance to a range of $710 million to $725 million, with Q2 revenue expected between $170 million and $176 million, demonstrating management's confidence in future growth.
See More
Mixed Earnings Reports from Multiple Companies
- ARM Holdings Earnings Beat: ARM Holdings reported fourth-quarter adjusted earnings of 60 cents and revenue of $1.49 billion, surpassing analyst expectations of 58 cents and $1.47 billion, leading to a 6% stock increase, indicating strong market demand and growth potential.
- DoorDash Optimistic Guidance: DoorDash forecasts second-quarter marketplace gross order value between $32.4 billion and $33.4 billion, exceeding the $32.43 billion expected by analysts, with first-quarter earnings of 42 cents per share beating the anticipated 36 cents, resulting in a 14% stock surge, reflecting robust performance in a competitive delivery market.
- Zillow Revenue Miss: Zillow's first-quarter residential revenue of $450 million fell short of the $454.2 million estimate, causing shares to drop nearly 7%, despite overall performance exceeding expectations, which dampened market confidence in future growth.
- Fortinet Raises Guidance: Fortinet increased its full-year billings guidance to a range of $8.8 billion to $9.1 billion, up from the previous forecast of $8.4 billion to $8.6 billion, leading to a 16% stock increase, showcasing strong growth and confidence in the cybersecurity sector.
See More
Fastly Q1 Earnings Beat Expectations with Significant Revenue Growth
- Strong Earnings Report: Fastly reported Q1 non-GAAP EPS of $0.13, beating expectations by $0.04, indicating ongoing improvements in profitability and boosting investor confidence.
- Robust Revenue Growth: Total revenue reached $173.02 million, a 19.7% year-over-year increase, with Network Services revenue at $126.2 million and Security revenue growing by 47%, highlighting strong market demand in key business areas.
- Optimistic Future Outlook: The company projects Q2 2026 revenue between $170.0 million and $176.0 million, with full-year revenue expectations of $710.0 million to $725.0 million, reflecting management's confidence in sustained growth.
- Record RPO: The recorded RPO reached $369 million, growing 63% year-over-year, demonstrating long-term customer commitment to Fastly's services and further solidifying the company's market position.
See More
Fastly Shares Surge 17.72% Ahead of Positive Earnings Forecast
- Significant Share Price Increase: Fastly's stock surged 17.72% on Tuesday to close at $32.36, as investors actively loaded up ahead of the earnings report, indicating strong market optimism regarding the company's performance.
- Revenue Growth Targets: The company anticipates a revenue increase of 16% to 20.4% in Q1, projecting between $168 million and $174 million, a notable rise from $144.5 million in the same period last year, reflecting robust business recovery.
- Improved Profitability Outlook: Fastly expects to swing to a non-GAAP net income per share of $0.07 to $0.10, compared to a net loss of $0.05 per share in the prior year, showcasing a significant enhancement in profitability.
- Anti-Piracy Collaboration: Fastly has partnered with Spain's Laliga to leverage AI in developing a real-time detection system for illegal streaming, aiming to combat piracy and enhance the company's position in digital content protection.
See More
Compton Sells 29,533 Shares of Fastly Stock
- Transaction Overview: Compton sold 29,533 shares of Fastly stock over two days on April 16 and 17, 2026, for a total value of approximately $720,000 based on a weighted average price of $24.39 per share, indicating a partial shift in his holdings.
- Ownership Change: This sale represented 2.54% of Compton's direct holdings, leaving him with 1,133,895 shares post-transaction, which signifies that despite the sale, he retains significant control over the company.
- Nature of Sale: The transaction involved only direct holdings with no indirect dispositions or derivative securities, indicating that Compton's decision was primarily driven by tax considerations and a pre-set trading plan rather than market sentiment.
- Market Reaction: While Compton's sale might be interpreted as a signal, analysis suggests that its actual impact is limited, and investors should focus on more critical metrics such as Fastly's revenue growth and customer concentration risks rather than a single executive sale.
See More
Fastly CEO Sells Nearly 30,000 Shares of Stock
- Transaction Overview: Fastly CEO Charles Lacey Compton III sold 29,533 shares of common stock in multiple open-market transactions on April 16 and 17, 2026, for a total value of approximately $720,000, indicating a reduction in holdings at elevated price levels.
- Holding Change Analysis: Post-transaction, Compton retains 1,133,895 shares, and while the sale represents 2.54% of his direct holdings, his overall direct ownership has decreased by 17.67% since January 2026, reflecting ongoing engagement with the company's equity.
- Market Context Impact: As of April 17, 2026, Fastly shares delivered a total return of 353.82% over the past year, with the transaction executed at a weighted average price of $24.39, indicating the sale occurred amid significant price appreciation.
- Compliance of Trading Plan: The stock sale was conducted under a Rule 10b5-1 trading plan adopted on August 27, 2025, with a portion of the shares sold to cover tax obligations related to RSU vesting, demonstrating that this was a routine market transaction rather than a discretionary decision.
See More
