Fastly posted fourth-quarter revenue of $175 million, up 14% year-over-year, driven by increased enterprise adoption of its edge cloud services. The company delivered earnings of $0.02 per share, returning to profitability compared to a loss in the prior year, reflecting better cost management and higher gross margins.

Shares soared 34% in after-hours trading, the largest single-day gain in over two years, as volume spiked and analysts raised price targets. Investors cheered both the revenue beat and management’s positive outlook on future growth.

Management emphasized Fastly’s expansion into AI-enabled edge offerings, including real-time model inferencing at the network edge and integrations with leading machine-learning platforms. This strategic push aims to meet rising demand for low-latency processing in media delivery and AI workloads.

Fastly raised its full-year 2026 revenue guidance to a range of $740 million–$760 million, up from prior guidance of $710 million–$730 million, and forecast adjusted EBITDA margins above 20%. The company plans to invest further in infrastructure to support higher traffic volumes and AI-driven services.