Fastly (FSLY) is trading lower on May 6, 2026 as the market shifts into risk-management mode ahead of its first-quarter 2026 earnings release scheduled after the close. With the stock having surged sharply year-to-date, traders appear to be locking in gains and trimming exposure into a catalyst that could reset expectations on margins and guidance.

A central concern into the print is whether profitability improvements can hold if AI-related demand pushes up prices for memory and networking hardware, potentially pressuring gross margin and requiring higher infrastructure spending. That margin-and-CapEx anxiety has been a focal point in recent bearish commentary and is now feeding a “sell-first, ask-questions-later” tape ahead of results.

Investors will focus on Q1 revenue and EPS versus consensus, plus any commentary on delivery pricing, traffic growth, and customer minimum commitments—signals that indicate whether AI-related traffic can offset pricing headwinds. Any update on the pace of security and compute adoption will also matter, because durability of these growth vectors is the clearest path to justifying a stock price that has run ahead of many analysts’ targets.