Fastly Rises Almost 100% on Q4 Beat and $700M–$720M 2026 Revenue Outlook
Fastly soared nearly 100% this week after reporting Q4 revenue of $172.6M (+23% YoY) and EPS that doubled analyst forecasts, driven by growing demand from agentic AI workloads. The company raised 2026 revenue guidance to $700M–$720M and saw security revenue climb 32%, highlighting robust AI-driven growth.
1. Earnings Beat Fuels Stock Surge
Fastly reported Q4 revenue of $172.6 million, up 23% year-over-year, and delivered EPS that doubled analyst expectations. CEO Kip Compton highlighted the company’s pivot to support agentic AI workloads, which attracted substantial investor interest and propelled shares nearly 100% higher this week.
2. Aggressive Guidance and Security Growth
Management guided 2026 revenue to a range of $700 million to $720 million, well above prior analyst estimates. Meanwhile, security-related revenue rose 32%, reflecting strong demand for solutions that protect against AI-driven web traffic challenges.
3. Technical Momentum and Potential Risks
Shares are trading 68.9% above their 20-day SMA and 65.2% above their 100-day SMA, signaling robust momentum. However, an RSI of 81.6 indicates overbought conditions and suggests the stock may face a short-term pullback despite bullish MACD readings.