Fastly Q1 Revenue Jumps 20% to $173M; Analysts Cut Targets to $18, $27
Fastly delivered Q1 earnings of $0.13 per share, beating estimates, while revenue rose 20% to $173 million driven by a 47% surge in security revenues. Despite raising full-year guidance, analysts trimmed price targets to $18 and $27 and maintained neutral ratings on valuation uncertainty.
1. Q1 Earnings and Revenue Performance
Fastly reported first-quarter EPS of $0.13, surpassing consensus estimates by 63%, and posted revenue of $173 million, up 20% year over year. Management highlighted that improved demand across core delivery services contributed to the top-line beat and supports stronger financial guidance for 2026.
2. Security Revenue Growth
Security offerings generated $38.8 million in Q1, a 47% increase that now represents 22% of total sales. The accelerated adoption of advanced web-application firewall and related security tools was cited as the primary driver of this segment’s expansion.
3. Analyst Ratings and Price Target Adjustments
Despite robust results, RBC Capital reduced its price target from $20 to $18 and maintained a Sector Perform rating, while Piper Sandler lowered its target from $30 to $27 with a Neutral view. Analysts cited ongoing valuation uncertainty and cautious market dynamics as reasons for the adjustments.