Fastly Shares Jump 34% Post-Earnings: Exploring Its Potential as an Overlooked AI Investment.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
0mins
Should l Buy FSLY?
Source: Barron's
Stock Performance: Fastly's stock experienced a significant increase on Thursday.
Earnings Report: The surge in stock price was driven by impressive fourth-quarter earnings that impressed investors.
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Analyst Views on FSLY
Wall Street analysts forecast FSLY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for FSLY is 11.70 USD with a low forecast of 10.00 USD and a high forecast of 14.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
2 Buy
7 Hold
1 Sell
Hold
Current: 9.090
Low
10.00
Averages
11.70
High
14.00
Current: 9.090
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 Record Q4 Revenue, Shares Surge 25%
- Significant Revenue Growth: Fastly's Q4 revenue reached $172.6 million, a 23% year-over-year increase that surpassed analysts' expectations of $161.4 million, indicating strong performance in network services and security, which is likely to drive stock price appreciation.
- Outstanding Security Services: Security revenue grew by 32% year-over-year, while network services revenue increased by 19%, demonstrating Fastly's ongoing expansion in critical business areas and enhancing its competitive position in the market.
- Improved Profitability: The company reported an adjusted net income of $0.12 per diluted share in Q4, compared to an adjusted net loss of $0.02 per diluted share in the same quarter last year, marking a successful transformation in its profitability model and boosting investor confidence.
- Optimistic Outlook: Fastly expects Q1 2026 revenue to range between $168 million and $174 million, exceeding analysts' expectations of $159.6 million, with full-year revenue projected to grow by 15%, reflecting the company's strong confidence in future growth prospects.
See More
U.S. Stock Futures Rise as Market Sentiment Improves
- Futures Recovery: Following Wednesday's decline, U.S. stock futures rose after a strong January jobs report, indicating improved market sentiment, particularly with the Dow Jones index up by 0.21%.
- Interest Rate Expectations: The CME Group's FedWatch tool shows a 94.1% likelihood that the Federal Reserve will keep interest rates unchanged in March, reflecting cautious investor sentiment regarding future monetary policy.
- Employment Data Impact: Analysts noted that the three-month average nonfarm payroll growth reached 73,000 in January, the highest since February 2025, which has led to increased expectations for potential Fed rate hikes due to the stability of this data.
- Commodity Market Trends: Crude oil futures rose by 0.36% to $64.86 per barrel, while gold spot prices fell by 0.47% to $5,059.50 per ounce, indicating a cautious sentiment among investors in the commodities market.
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Fastly Reports Strong Quarterly Earnings Exceeding Expectations
- Strong Earnings Performance: Fastly reported earnings of $0.12 per share, surpassing analyst expectations of $0.06, indicating a significant improvement in profitability and boosting market confidence in future growth.
- Significant Revenue Growth: The quarterly revenue reached $172.61 million, exceeding Wall Street's estimate of $161.36 million and up from $140.58 million in the same period last year, demonstrating the company's robust performance amid recovering market demand.
- Stock Price Surge: Fastly's shares jumped 34.8% to $12.55 in pre-market trading, reflecting a positive investor reaction to the earnings report, which may attract more investor interest in its future developments.
- Increased Market Confidence: The strong earnings report not only enhances investor confidence but may also prompt analysts to revise their ratings and price targets for the company, potentially driving further stock price increases.
See More
Fastly Shares Jump 34% Post-Earnings: Exploring Its Potential as an Overlooked AI Investment.
Stock Performance: Fastly's stock experienced a significant increase on Thursday.
Earnings Report: The surge in stock price was driven by impressive fourth-quarter earnings that impressed investors.
See More
Fastly Targets 14% Revenue Growth for 2026 Amid Strong Q1 Results
- Revenue Growth Target: Fastly has set a revenue growth target of 14% for 2026, reflecting the company's confidence in future market demand and indicating its growth potential in the competitive SaaS landscape.
- Edge AI Momentum: The ongoing momentum in Fastly's edge AI initiatives, combined with strong Q1 results, demonstrates its enhanced technological innovation capabilities, which could further drive customer demand and market share growth.
- Record Margins: The company reported record margins in its latest earnings report, which not only boosts investor confidence but also provides funding for future investments and expansions, showcasing success in cost control and operational efficiency.
- Positive Market Reaction: Fastly's stock surged amid strong Q1 results and optimistic growth outlook, reflecting market recognition of its strategic direction and execution capabilities, potentially attracting more investor interest.
See More
Fastly Exceeds Expectations in Q4 2025 Earnings Call
- Strong Revenue Growth: Fastly reported $172.6 million in revenue for Q4 2025, exceeding the guidance range of $159 million to $163 million, marking the fourth consecutive quarter of revenue acceleration with a 23% year-over-year growth, the highest in over three years, indicating robust market demand and execution.
- Accelerated Security Revenue: Security revenue grew 32% year-over-year, up from 30% in Q3, reflecting increasing customer demand for security solutions, particularly supported by large clients such as a Fortune 500 restaurant chain and a home retailer, further solidifying Fastly's market position in security.
- Record Gross Margins: The gross margin hit a record 64% in Q4, up 650 basis points from 57.5% in Q4 2024, with operating income at $21.2 million and operating margin expanding to 12.3%, showcasing the company's success in cost control and efficiency improvements, enhancing profitability.
- Optimistic 2026 Outlook: Fastly projects full-year 2026 revenue between $700 million and $720 million, reflecting a 14% growth rate, while Q1 gross margins are expected to remain around 64%, demonstrating the company's confidence in future growth and commitment to ongoing investments, particularly in security and AI innovations.
See More
Fastly Reports Record Q4 Revenue, Shares Surge 25%
- Significant Revenue Growth: Fastly's Q4 revenue reached $172.6 million, a 23% year-over-year increase that surpassed analysts' expectations of $161.4 million, indicating strong performance in network services and security, which is likely to drive stock price appreciation.
- Outstanding Security Services: Security revenue grew by 32% year-over-year, while network services revenue increased by 19%, demonstrating Fastly's ongoing expansion in critical business areas and enhancing its competitive position in the market.
- Improved Profitability: The company reported an adjusted net income of $0.12 per diluted share in Q4, compared to an adjusted net loss of $0.02 per diluted share in the same quarter last year, marking a successful transformation in its profitability model and boosting investor confidence.
- Optimistic Outlook: Fastly expects Q1 2026 revenue to range between $168 million and $174 million, exceeding analysts' expectations of $159.6 million, with full-year revenue projected to grow by 15%, reflecting the company's strong confidence in future growth prospects.
See More
U.S. Stock Futures Rise as Market Sentiment Improves
- Futures Recovery: Following Wednesday's decline, U.S. stock futures rose after a strong January jobs report, indicating improved market sentiment, particularly with the Dow Jones index up by 0.21%.
- Interest Rate Expectations: The CME Group's FedWatch tool shows a 94.1% likelihood that the Federal Reserve will keep interest rates unchanged in March, reflecting cautious investor sentiment regarding future monetary policy.
- Employment Data Impact: Analysts noted that the three-month average nonfarm payroll growth reached 73,000 in January, the highest since February 2025, which has led to increased expectations for potential Fed rate hikes due to the stability of this data.
- Commodity Market Trends: Crude oil futures rose by 0.36% to $64.86 per barrel, while gold spot prices fell by 0.47% to $5,059.50 per ounce, indicating a cautious sentiment among investors in the commodities market.
See More
Fastly Reports Strong Quarterly Earnings Exceeding Expectations
- Strong Earnings Performance: Fastly reported earnings of $0.12 per share, surpassing analyst expectations of $0.06, indicating a significant improvement in profitability and boosting market confidence in future growth.
- Significant Revenue Growth: The quarterly revenue reached $172.61 million, exceeding Wall Street's estimate of $161.36 million and up from $140.58 million in the same period last year, demonstrating the company's robust performance amid recovering market demand.
- Stock Price Surge: Fastly's shares jumped 34.8% to $12.55 in pre-market trading, reflecting a positive investor reaction to the earnings report, which may attract more investor interest in its future developments.
- Increased Market Confidence: The strong earnings report not only enhances investor confidence but may also prompt analysts to revise their ratings and price targets for the company, potentially driving further stock price increases.
See More
Fastly Shares Jump 34% Post-Earnings: Exploring Its Potential as an Overlooked AI Investment.
Stock Performance: Fastly's stock experienced a significant increase on Thursday.
Earnings Report: The surge in stock price was driven by impressive fourth-quarter earnings that impressed investors.
See More
Fastly Targets 14% Revenue Growth for 2026 Amid Strong Q1 Results
- Revenue Growth Target: Fastly has set a revenue growth target of 14% for 2026, reflecting the company's confidence in future market demand and indicating its growth potential in the competitive SaaS landscape.
- Edge AI Momentum: The ongoing momentum in Fastly's edge AI initiatives, combined with strong Q1 results, demonstrates its enhanced technological innovation capabilities, which could further drive customer demand and market share growth.
- Record Margins: The company reported record margins in its latest earnings report, which not only boosts investor confidence but also provides funding for future investments and expansions, showcasing success in cost control and operational efficiency.
- Positive Market Reaction: Fastly's stock surged amid strong Q1 results and optimistic growth outlook, reflecting market recognition of its strategic direction and execution capabilities, potentially attracting more investor interest.
See More
Fastly Exceeds Expectations in Q4 2025 Earnings Call
- Strong Revenue Growth: Fastly reported $172.6 million in revenue for Q4 2025, exceeding the guidance range of $159 million to $163 million, marking the fourth consecutive quarter of revenue acceleration with a 23% year-over-year growth, the highest in over three years, indicating robust market demand and execution.
- Accelerated Security Revenue: Security revenue grew 32% year-over-year, up from 30% in Q3, reflecting increasing customer demand for security solutions, particularly supported by large clients such as a Fortune 500 restaurant chain and a home retailer, further solidifying Fastly's market position in security.
- Record Gross Margins: The gross margin hit a record 64% in Q4, up 650 basis points from 57.5% in Q4 2024, with operating income at $21.2 million and operating margin expanding to 12.3%, showcasing the company's success in cost control and efficiency improvements, enhancing profitability.
- Optimistic 2026 Outlook: Fastly projects full-year 2026 revenue between $700 million and $720 million, reflecting a 14% growth rate, while Q1 gross margins are expected to remain around 64%, demonstrating the company's confidence in future growth and commitment to ongoing investments, particularly in security and AI innovations.
See More
