Fastly's Q1 Results Fall Short of Expectations, Shares Plummet
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 52 minutes ago
0mins
Should l Buy FSLY?
Source: stocktwits
- Q1 Financial Results: Fastly reported Q1 revenue of $173 million, a 20% increase year-over-year, which beat the $171.8 million estimate; however, it failed to meet market expectations for a larger beat, leading to a significant stock price drop.
- Full-Year Revenue Guidance: The company now forecasts full-year revenue between $710 million and $720 million, with the midpoint falling below the $716.53 million estimate, indicating potential growth slowdown that could impact investor confidence.
- Market Reaction: Fastly's shares tumbled nearly 40% by midday Thursday, and if this trend continues, it will mark the largest single-day percentage decline ever, reflecting investor disappointment over the core delivery business's underperformance.
- Retail Investor Sentiment: Despite the stock's decline, retail sentiment on Stocktwits has turned 'extremely bullish', with users viewing the current dip as a buying opportunity, indicating confidence in the company's long-term potential.
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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: 31.570
Low
10.00
Averages
11.70
High
14.00
Current: 31.570
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 STOCK PLUNGES 21.3% IN PREMARKET TRADING FOLLOWING Q1 RESULTS
- Stock Performance: Fastly shares have decreased by 21.3% in pre-market trading following the release of their Q1 results.
- Market Reaction: The significant drop in share price indicates a negative market reaction to the company's quarterly performance.
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
Fastly's Q1 Results Fall Short of Expectations, Shares Plummet
- Q1 Financial Results: Fastly reported Q1 revenue of $173 million, a 20% increase year-over-year, which beat the $171.8 million estimate; however, it failed to meet market expectations for a larger beat, leading to a significant stock price drop.
- Full-Year Revenue Guidance: The company now forecasts full-year revenue between $710 million and $720 million, with the midpoint falling below the $716.53 million estimate, indicating potential growth slowdown that could impact investor confidence.
- Market Reaction: Fastly's shares tumbled nearly 40% by midday Thursday, and if this trend continues, it will mark the largest single-day percentage decline ever, reflecting investor disappointment over the core delivery business's underperformance.
- Retail Investor Sentiment: Despite the stock's decline, retail sentiment on Stocktwits has turned 'extremely bullish', with users viewing the current dip as a buying opportunity, indicating confidence in the company's long-term potential.
See More
Midday Stock Movements of Major Companies
- Planet Fitness Earnings Downgrade: Planet Fitness shares fell nearly 33% after the gym operator lowered its full-year earnings outlook, now projecting only a 4% year-over-year growth, down from a previous forecast of 9%-10%, which negatively impacts market confidence.
- Vital Farms Surprise Loss: Vital Farms, the egg producer, dropped 20% following a surprise loss of 3 cents per share in Q1, against analyst expectations of a 6-cent profit, and the company also cut its full-year earnings outlook, indicating increasing industry pressures.
- Datadog Exceeds Expectations: Datadog shares surged 28% after reporting Q1 earnings of 61 cents per share, surpassing the 51-cent consensus, with Q2 revenue guidance between $1.07 billion and $1.08 billion, reflecting strong market demand.
- AAON Revenue Surge: AAON, the air conditioning and heating equipment manufacturer, saw its shares soar 40% after Q1 earnings, EBITDA, and revenue all exceeded Wall Street estimates, raising its full-year revenue guidance by as much as 45%, showcasing robust growth potential.
See More
Fastly Shares Plunge Over 35% Despite Beating Q1 Estimates
- Earnings Beat: Fastly reported Q1 revenue of $175 million, a 20% YoY increase, surpassing estimates; however, the full-year revenue guidance was only modestly raised to a 15% YoY growth, indicating potential deceleration that may impact investor confidence.
- Divergent Analyst Ratings: Oppenheimer and Piper Sandler maintained Neutral ratings, with price targets reduced to $27 and $18 respectively, reflecting concerns over disappointing core delivery business performance, especially as pricing remains stable but faces increasing competitive pressures.
- Strong Security Business Growth: Fastly's security revenues surged 47% to $38.8 million, exceeding market expectations, showcasing robust performance in its new security portfolio, which may support future growth prospects.
- Uncertain Market Outlook: While RBC Capital Markets and KeyBanc Capital Markets remain optimistic about Fastly's long-term outlook, analysts are generally cautious about the stability of network services, suggesting that stock prices may be hampered by concerns over whether growth has peaked.
See More
Fast Food Giants Show Mixed Earnings Results
- Shake Shack's Poor Performance: Shake Shack reported first-quarter revenue of $366.7 million, falling short of the $372 million consensus estimate, leading to a 17% drop in shares and an operating loss of $2.6 million, highlighting pressures in the competitive fast-food market.
- McDonald's Beats Expectations: McDonald's posted adjusted earnings of $2.83 per share for the first quarter, exceeding the $2.74 expected by analysts, with revenue of $6.52 billion slightly above the $6.47 billion consensus, resulting in a 3.2% increase in shares, reflecting strong market performance.
- Whirlpool Cuts Guidance: Whirlpool lowered its full-year adjusted earnings forecast to a range of $3 to $3.50 per share on revenue of approximately $15 billion, down from previous guidance of $6 per share and $15.3 billion to $15.6 billion, causing an 18% drop in shares and indicating industry challenges.
- DoorDash's Optimistic Guidance: DoorDash anticipates second-quarter marketplace gross order value between $32.4 billion and $33.4 billion, surpassing the $32.43 billion expected by analysts, with first-quarter earnings of $0.42 per share exceeding the $0.36 forecast, leading to a 10% rise in shares and showcasing growth potential.
See More
FASTLY STOCK PLUNGES 21.3% IN PREMARKET TRADING FOLLOWING Q1 RESULTS
- Stock Performance: Fastly shares have decreased by 21.3% in pre-market trading following the release of their Q1 results.
- Market Reaction: The significant drop in share price indicates a negative market reaction to the company's quarterly performance.
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
Fastly's Q1 Results Fall Short of Expectations, Shares Plummet
- Q1 Financial Results: Fastly reported Q1 revenue of $173 million, a 20% increase year-over-year, which beat the $171.8 million estimate; however, it failed to meet market expectations for a larger beat, leading to a significant stock price drop.
- Full-Year Revenue Guidance: The company now forecasts full-year revenue between $710 million and $720 million, with the midpoint falling below the $716.53 million estimate, indicating potential growth slowdown that could impact investor confidence.
- Market Reaction: Fastly's shares tumbled nearly 40% by midday Thursday, and if this trend continues, it will mark the largest single-day percentage decline ever, reflecting investor disappointment over the core delivery business's underperformance.
- Retail Investor Sentiment: Despite the stock's decline, retail sentiment on Stocktwits has turned 'extremely bullish', with users viewing the current dip as a buying opportunity, indicating confidence in the company's long-term potential.
See More
Midday Stock Movements of Major Companies
- Planet Fitness Earnings Downgrade: Planet Fitness shares fell nearly 33% after the gym operator lowered its full-year earnings outlook, now projecting only a 4% year-over-year growth, down from a previous forecast of 9%-10%, which negatively impacts market confidence.
- Vital Farms Surprise Loss: Vital Farms, the egg producer, dropped 20% following a surprise loss of 3 cents per share in Q1, against analyst expectations of a 6-cent profit, and the company also cut its full-year earnings outlook, indicating increasing industry pressures.
- Datadog Exceeds Expectations: Datadog shares surged 28% after reporting Q1 earnings of 61 cents per share, surpassing the 51-cent consensus, with Q2 revenue guidance between $1.07 billion and $1.08 billion, reflecting strong market demand.
- AAON Revenue Surge: AAON, the air conditioning and heating equipment manufacturer, saw its shares soar 40% after Q1 earnings, EBITDA, and revenue all exceeded Wall Street estimates, raising its full-year revenue guidance by as much as 45%, showcasing robust growth potential.
See More
Fastly Shares Plunge Over 35% Despite Beating Q1 Estimates
- Earnings Beat: Fastly reported Q1 revenue of $175 million, a 20% YoY increase, surpassing estimates; however, the full-year revenue guidance was only modestly raised to a 15% YoY growth, indicating potential deceleration that may impact investor confidence.
- Divergent Analyst Ratings: Oppenheimer and Piper Sandler maintained Neutral ratings, with price targets reduced to $27 and $18 respectively, reflecting concerns over disappointing core delivery business performance, especially as pricing remains stable but faces increasing competitive pressures.
- Strong Security Business Growth: Fastly's security revenues surged 47% to $38.8 million, exceeding market expectations, showcasing robust performance in its new security portfolio, which may support future growth prospects.
- Uncertain Market Outlook: While RBC Capital Markets and KeyBanc Capital Markets remain optimistic about Fastly's long-term outlook, analysts are generally cautious about the stability of network services, suggesting that stock prices may be hampered by concerns over whether growth has peaked.
See More
Fast Food Giants Show Mixed Earnings Results
- Shake Shack's Poor Performance: Shake Shack reported first-quarter revenue of $366.7 million, falling short of the $372 million consensus estimate, leading to a 17% drop in shares and an operating loss of $2.6 million, highlighting pressures in the competitive fast-food market.
- McDonald's Beats Expectations: McDonald's posted adjusted earnings of $2.83 per share for the first quarter, exceeding the $2.74 expected by analysts, with revenue of $6.52 billion slightly above the $6.47 billion consensus, resulting in a 3.2% increase in shares, reflecting strong market performance.
- Whirlpool Cuts Guidance: Whirlpool lowered its full-year adjusted earnings forecast to a range of $3 to $3.50 per share on revenue of approximately $15 billion, down from previous guidance of $6 per share and $15.3 billion to $15.6 billion, causing an 18% drop in shares and indicating industry challenges.
- DoorDash's Optimistic Guidance: DoorDash anticipates second-quarter marketplace gross order value between $32.4 billion and $33.4 billion, surpassing the $32.43 billion expected by analysts, with first-quarter earnings of $0.42 per share exceeding the $0.36 forecast, leading to a 10% rise in shares and showcasing growth potential.
See More
