Fastly (NASDAQ:FSLY) Issues Earnings Results

Fastly (NASDAQ:FSLY) announced its quarterly earnings data on Wednesday. The company reported $0.17 earnings per share for the quarter, beating the consensus estimate of $0.12 by $0.05, FiscalAI reports. Fastly had a negative return on equity of 4.57% and a negative net margin of 8.74%. The firm had revenue of $190.19 million during the quarter, compared to analysts’ expectations of $187.82 million.

Here are the key takeaways from Fastly’s conference call:

• Fastly reported record Q3 revenue of $190.2 million, up 20% year over year, with a 65.8% gross margin, $31.2 million in non-GAAP operating income and $25 million in free cash flow.
• The company raised its 2026 revenue outlook to $744 million–$748 million and operating profit outlook to $107 million–$111 million, and lifted free cash flow guidance to $50 million–$60 million. Q4 revenue guidance implies 16% year-over-year growth at the midpoint, below the recent 20% pace.
• Customer expansion remained strong: trailing 12-month net retention rose to 119%, while 34% of large customers now use at least four product suites. Security revenue grew 32% year over year.
• Growth was concentrated among the largest customers: the top 10 accounted for 39% of revenue and grew 46% year over year, while revenue from customers outside the top 10 grew 8%. Management said broader go-to-market investments may take time to improve growth in that group.
• Go-to-market leader Scott Lovett plans to retire next year, and CEO Kip Compton and Lovett will lead a search for a successor. Management expects continuity during the transition, citing Lovett’s continued involvement and the strength of the leadership bench.

Fastly Stock Up 4.1%

Shares of FSLY traded up $0.64 during trading hours on Friday, reaching $16.02. 7,298,292 shares of the stock traded hands, compared to its average volume of 8,914,319. Fastly has a 52 week low of $7.87 and a 52 week high of $34.82. The company has a market cap of $2.55 billion, a price-to-earnings ratio of -39.85 and a beta of 0.22. The stock has a fifty day simple moving average of $24.14 and a 200 day simple moving average of $21.49. The company has a current ratio of 3.36, a quick ratio of 3.36 and a debt-to-equity ratio of 0.33.

Analyst Ratings Changes

A number of analysts have recently commented on FSLY shares. Weiss Ratings reissued a “sell (d-)” rating on shares of Fastly in a research note on Wednesday. Piper Sandler reaffirmed a “neutral” rating and issued a $24.00 price objective (down from $28.00) on shares of Fastly in a research note on Thursday. Canaccord Genuity Group initiated coverage on shares of Fastly in a research report on Friday, July 17th. They issued a “buy” rating and a $27.00 price target for the company. Evercore reiterated an “outperform” rating on shares of Fastly in a report on Wednesday, September 23rd. Finally, DA Davidson lifted their price target on shares of Fastly from $21.00 to $23.00 and gave the stock a “neutral” rating in a report on Wednesday, September 23rd. One research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, five have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $26.17.

Insiders Place Their Bets

In other Fastly news, CEO Charles Compton, III sold 55,579 shares of Fastly stock in a transaction dated Tuesday, September 1st. The stock was sold at an average price of $21.39, for a total transaction of $1,188,834.81. Following the completion of the transaction, the chief executive officer owned 914,235 shares of the company’s stock, valued at $19,555,486.65. The trade was a 5.73% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Jeffrey Ford sold 45,832 shares of the business’s stock in a transaction dated Thursday, September 17th. The stock was sold at an average price of $24.65, for a total value of $1,129,758.80. Following the transaction, the insider owned 249,861 shares of the company’s stock, valued at approximately $6,159,073.65. The trade was a 15.50% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 1,323,893 shares of company stock valued at $35,452,889. 4.20% of the stock is currently owned by insiders.

Key Stories Impacting Fastly

Here are the key news stories impacting Fastly this week:

• Positive Sentiment: Fastly beat third-quarter estimates, with revenue up 20.2% year over year to $190.2 million and adjusted earnings of $0.17 per share versus $0.12 expected. The company raised its 2026 outlook, citing deeper platform adoption, security demand, AI-related workloads and a Comcast partnership. Earnings Beat Might Change The Case For Investing In Fastly
• Positive Sentiment: Management forecast full-year revenue of $744 million–$748 million and free cash flow of $50 million–$60 million. Security sales rose 32%, and the company highlighted expanding use of multiple products by customers—supporting its strategy to grow beyond content delivery. FSLY Q3 Earnings Call Highlights Growth & Higher Outlook
• Neutral Sentiment: Piper Sandler reaffirmed its Neutral rating but lowered its price target to $24 from $28; RBC maintained Sector Perform while cutting its target to $19 from $25. The revised targets remain above the share price cited in the reports, but the cuts indicate less optimistic analyst expectations. RBC Cuts Price Target on Fastly
• Negative Sentiment: Despite the earnings beat, the stock sold off after results. Investors may be focused on expected fourth-quarter growth deceleration and an analyst’s concerns about slowing performance in some business segments. Fastly Plunges on Q3 Results as Analyst Highlights Segment Deceleration
• Negative Sentiment: Fastly also announced that Go-To-Market President Scott Lovett plans to retire in 2027 and that it will search for a Chief Revenue Officer, adding leadership-transition uncertainty. Fastly Announces Leadership Transition in Go To Market

About Fastly

Fastly, Inc is a technology company that provides an edge cloud platform designed to help businesses deliver, secure, and optimize digital applications and content. Its platform processes data and applications closer to end users, supporting faster performance, improved reliability, and greater control over internet-based services.

Fastly’s products and services include content delivery, application programming interface (API) acceleration, edge computing, application and API security, bot management, distributed denial-of-service protection, and observability tools.