Fastly provides edge cloud computing services that run data processing and application logic near users to reduce latency and improve performance. Customers deploy code at the network edge using Edge Compute Language, manage services through APIs, and rely on edge caching and security to speed up and protect content. It differentiates itself with a programmable, developer-focused edge platform and a global edge network, along with usage-based pricing. The goal is to enable faster, safer online experiences by moving computation and delivery closer to users across industries.
Company Size
1,001-5,000
Company Stage
IPO
Headquarters
San Francisco, California
Founded
2011
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Fastly stock returned 241.5% in the twelve months to October 9, 2026, far ahead of the S&P 500's 17.0% gain. Sales growth has picked up and losses have narrowed. The first sign came on February 12, 2025, when management outlined a plan to sell its full range, including security and bot protection. Revenue grew 8.2% in the quarter ended March 2025 and 12.3% in the second quarter, though the operating loss was still 24.6% of revenue. Second-quarter 2026 revenue rose 23% to $183.3 million, with security up 43%. The trailing twelve-month operating loss narrowed to 12.0% of revenue. Fastly guided third-quarter revenue to $184 million to $190 million. It reports results on November 4, 2026.
Fastly shares surged nearly 16% on Friday after Oppenheimer upgraded the edge cloud platform provider, citing growing contract values and early monetisation of agentic AI traffic. The brokerage expects these trends to sustain stronger growth over the next few years, driving the stock to a higher valuation as Fastly delivers growth and margin expansion. Oppenheimer's industry checks indicated higher contract values alongside early monetisation of traffic from agentic AI applications. The firm believes these trends could drive growth in the high teens to low 20s over the next few years. Fastly's second-quarter revenue grew 23% to $183.3 million, with security revenue up 43% to $41.7 million. The company is scheduled to report third-quarter earnings on 4 November.
Comcast and Fastly have partnered with NBCUniversal to improve streaming quality for Peacock's live sports events by moving content closer to viewers. The collaboration runs Fastly's content delivery software directly on Comcast's distributed network of over 200 edge computing centres across the US. The approach addresses the massive infrastructure demands of live sports streaming, where millions of viewers arrive simultaneously. By processing content within Comcast's network rather than from centralised external locations, the system reduces duplicate traffic and delivery distances. The model particularly benefits major sporting events on Peacock, including NFL, NBA, and MLB games. Beyond live streaming, the underlying technology could support gaming, cybersecurity, AI inference, and enterprise cloud services. Comcast continues exploring additional applications for its edge computing resources.
Fastly is expanding beyond content delivery into a broader platform strategy encompassing delivery, security, compute, and observability. The company announced this direction at its September 22 Investor Day, prompting shares to jump 14%. The timing aligns with growing AI-generated traffic. Analysis of Meta's Muse assistant found Fastly infrastructure appearing in 29.3% of tests, suggesting a significant role in AI workloads. Multi-product adoption is accelerating. Currently, 72% of customers use at least two product suites, up from 58% two years ago. Some 30% now use four or more suites, versus just 7% previously. Second-quarter revenue increased 23% year-over-year, with net revenue retention rising to 117%. Security revenue grew 43%, whilst compute-related revenue helped drive 69% growth in other categories.
Fastly is targeting $1.1 billion to $1.3 billion in revenue by 2029, representing a 14% to 21% compound annual growth rate from 2026. The company also expects gross margins of 67%–71%, operating margins of 20%–22%, and free cash flow margins of 12%–15%. The edge cloud platform provider said AI traffic is growing 6.5 times faster than human traffic on its network. The company reported a sevenfold increase in AI model distribution over the past month and an 11-fold growth in Model Context Protocol traffic this year. Fastly's security business grew 43% year over year in the latest quarter, with Bot Management and DDoS Protection posting triple-digit growth. The company said 72% of customers now use at least two product suites, whilst 30% use four or more.