Fastly Shares Surge 88% After $172.6M Q4 and $700M–$720M Outlook
Fastly posted Q4 revenue of $172.6m, up 23% YoY, with EPS doubling analyst forecasts, driving shares up 88%. The company forecasted 2026 revenue of $700–720m on surging agentic AI traffic and delivered a record 64% gross margin, as security products grew 32%.
1. Q4 Financial Highlights
Fastly reported Q4 revenue of $172.6 million, up 23% year-over-year, with earnings per share that doubled consensus estimates, marking its strongest quarterly performance to date.
2. Agentic AI Inflection Point
CEO Kip Compton described the rise of autonomous AI agents as a structural inflection point, noting that increased agent-driven web traffic is now routed and optimized through Fastly’s edge cloud platform for enterprise customers.
3. Security Growth and Margins
Security product revenue accelerated 32% as Fastly shifted from blocking to optimizing AI bot traffic, contributing to a record 64% gross margin by monetizing high-value AI and security workloads.
4. Aggressive 2026 Guidance
CFO Rich Wong guided full-year 2026 revenue to $700–$720 million, significantly above prior analyst estimates, as the company capitalizes on its edge infrastructure for AI workloads and bot management services.