Fastly (NYSE:FSLY) Issues Q3 2026 Earnings Guidance

Fastly (NYSE:FSLY) issued an update on its third quarter 2026 earnings guidance on Wednesday. The company provided earnings per share (EPS) guidance of 0.110-0.130 for the period, compared to the consensus estimate of 0.010. The company issued revenue guidance of $184.0 million-$190.0 million, compared to the consensus revenue estimate of $180.1 million. Fastly also updated its FY 2026 guidance to 0.500-0.540 EPS.

Analysts Set New Price Targets

A number of research firms have recently issued reports on FSLY. Piper Sandler lifted their price objective on shares of Fastly from $27.00 to $28.00 and gave the company a “neutral” rating in a report on Thursday. Evercore restated an “outperform” rating on shares of Fastly in a research note on Thursday. Canaccord Genuity Group initiated coverage on Fastly in a research note on Friday, July 17th. They set a “buy” rating and a $27.00 price objective on the stock. Royal Bank Of Canada increased their price objective on Fastly from $22.00 to $28.00 and gave the company a “sector perform” rating in a report on Thursday. Finally, Freedom Capital raised shares of Fastly to a “strong-buy” rating in a research note on Thursday, July 16th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $25.33.

Fastly Stock Performance

Fastly stock traded down $3.35 during midday trading on Thursday, reaching $22.68. 12,036,219 shares of the company’s stock were exchanged, compared to its average volume of 9,928,365. Fastly has a 52 week low of $6.70 and a 52 week high of $34.82. The company has a debt-to-equity ratio of 0.16, a quick ratio of 1.46 and a current ratio of 1.46. The firm has a market cap of $3.55 billion, a price-to-earnings ratio of -23.62 and a beta of 0.34. The stock’s 50-day simple moving average is $19.53 and its 200 day simple moving average is $19.99.

Insiders Place Their Bets

In related news, CEO Charles Lacey Compton III sold 14,868 shares of the stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $25.00, for a total value of $371,700.00. Following the sale, the chief executive officer owned 1,030,592 shares in the company, valued at approximately $25,764,800. This represents a 1.42% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Richard Wong sold 2,500 shares of the firm’s stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $16.48, for a total value of $41,200.00. Following the sale, the chief financial officer directly owned 1,239,301 shares of the company’s stock, valued at $20,423,680.48. This represents a 0.20% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders sold 289,397 shares of company stock valued at $5,133,480. Corporate insiders own 4.20% of the company’s stock.

Key Headlines Impacting Fastly

Here are the key news stories impacting Fastly this week:

• Positive Sentiment: Fastly beat quarterly expectations and raised its outlook. Second-quarter revenue reached a record $183.3 million, up 23% year over year, while non-GAAP earnings were $0.15 per share versus the $0.07 consensus estimate. Management raised its 2026 outlook, supported by stronger operating performance and record margins. Fastly Q2 Earnings Beat as Security Growth Spurs 2026 Outlook Hike
• Positive Sentiment: Security and AI-related demand remain key growth drivers. Security revenue increased 43%, and total gross margin reached a record 65.8%, indicating improving business mix and profitability. Third-quarter revenue guidance of $184 million to $190 million and EPS guidance of $0.11 to $0.13 were above analyst expectations. Fastly Q2 Earnings Call Highlights
• Positive Sentiment: Analysts increased their targets. KeyCorp raised its target from $27 to $30 and maintained an “overweight” rating, while RBC lifted its target from $22 to $28 with a “sector perform” rating. Analyst price-target updates
• Neutral Sentiment: Fastly’s partnership with Experian’s Agent Trust ecosystem could position its edge network to help authenticate AI agents, authorize transactions and apply identity-based security policies. The opportunity strengthens the AI growth narrative, although its financial contribution remains uncertain. Fastly and Experian Agent Trust partnership
• Negative Sentiment: The shares are declining despite the results, likely reflecting “sell-the-news” activity and valuation concerns. Fastly has already delivered an exceptionally large 12-month gain, leaving the stock priced for continued strong execution. A valuation analysis cautioned that the shares may be expensive, limiting room for disappointment even after the earnings beat. Fastly Stock Looks Overvalued Despite Strong Return

Institutional Trading of Fastly

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Kestra Advisory Services LLC lifted its position in shares of Fastly by 8.4% in the 4th quarter. Kestra Advisory Services LLC now owns 11,970 shares of the company’s stock worth $122,000 after purchasing an additional 930 shares during the period. Parallax Volatility Advisers L.P. raised its stake in Fastly by 13.8% during the 3rd quarter. Parallax Volatility Advisers L.P. now owns 12,095 shares of the company’s stock worth $103,000 after buying an additional 1,465 shares during the period. Mariner LLC boosted its holdings in Fastly by 13.2% in the fourth quarter. Mariner LLC now owns 30,988 shares of the company’s stock worth $315,000 after acquiring an additional 3,606 shares in the last quarter. Align Financial LLC bought a new stake in Fastly during the 4th quarter valued at $41,000. Finally, Bank of Nova Scotia raised its holdings in shares of Fastly by 25.9% in the 3rd quarter. Bank of Nova Scotia now owns 21,743 shares of the company’s stock worth $186,000 after acquiring an additional 4,479 shares during the last quarter. Institutional investors own 79.71% of the company’s stock.

Fastly Company Profile

Fastly, Inc operates an edge cloud platform designed to accelerate, secure and enable modern digital experiences. The company offers a suite of services including a content delivery network (CDN), edge compute, load balancing, web application firewall (WAF) and DDoS protection. Fastly’s real-time architecture allows customers to seamlessly deploy software logic at the network edge, reducing latency by bringing applications and content closer to end users.

Founded in 2011 by Artur Bergman, Fastly has evolved from a pure-play CDN provider into a comprehensive edge cloud platform.