Fastly Beats Q4 Estimates, Guides $720M 2026 Revenue; Shares Jump 25%
Fastly reported Q4 revenue of $172.6 million, up 23% year-over-year, and non-GAAP EPS of $0.12, more than doubling analyst forecasts. The company raised 2026 guidance to $700 million–$720 million in revenue and $0.23–$0.29 in adjusted EPS, sending shares up over 25%.
1. Q4 Financial Highlights
In the fourth quarter Fastly achieved record revenue of $172.6 million, a 23% increase from $140.6 million a year earlier, and delivered non-GAAP EPS of $0.12 versus a $0.06 consensus. Gross margin expanded to 64.0% non-GAAP, while GAAP gross margin rose to 61.4%.
2. Customer and Retention Metrics
Remaining Performance Obligations climbed 55% to $353.8 million. Enterprise customer count reached 628, up 32 year-over-year, and the top 10 customers’ revenue share rose to 34% from 32%, with a last-12-month net retention rate of 110%.
3. Guidance and AI Tailwind
Fastly forecasts 2026 revenue of $700 million–$720 million and adjusted EPS of $0.23–$0.29, compared with consensus of $667.8 million and $0.14 EPS. Management cited continued transformation progress and an increasing AI tailwind supporting growth.
4. Share Price Reaction
Following the release of results and above-forecast guidance, shares surged over 25% in extended trading, reflecting investor confidence in the company’s renewed growth trajectory and profitability improvements.