Fastly (FSLY) Posts Record Q1 Revenue and Raises 2026 Guidance
Key Takeaways
- Fastly reported record Q1 2026 revenue of $173 million, a 20% year-over-year increase, with improved gross margins and a narrowed net loss.
- The company raised its full-year 2026 revenue guidance to $710 million–$725 million while highlighting strong growth in security solutions.
- Shares experienced significant volatility following the earnings release, reflecting investor focus on sequential growth expectations.
- Analyst consensus remains a Hold rating, with average price targets suggesting moderate upside potential.
- Remaining performance obligations reached a record $369 million, indicating robust future revenue visibility.
Recent Market Activity Around FSLY
In recent weeks, Fastly stock has traded amid heightened volatility driven by earnings results and shifting investor sentiment around growth trajectories in the edge cloud sector. Broader market cycles have influenced trading sessions, with the share price reflecting both positive operational momentum and caution over forward guidance. The stock continues to attract attention from investors monitoring technology infrastructure plays amid evolving cloud demand patterns. To put the moves in context, I also checked this using Tickeron’s AI Screener to see how FSLY compares to others in the industry.
Fastly’s Q1 2026 Earnings and Key Developments
Fastly released its first-quarter 2026 financial results in early May, posting record revenue of $173 million, representing 20% year-over-year growth. The company also achieved a record GAAP gross margin of 62.5% and reported remaining performance obligations of $369 million, up 63% from the prior year. Security revenue grew 47% year-over-year, underscoring strength in that segment. GAAP net loss narrowed to $20.5 million, while non-GAAP net income reached $22.9 million. Management raised full-year 2026 guidance to revenue of $710 million–$725 million and non-GAAP operating income of $58 million–$68 million.
Despite the beat on estimates and raised outlook, shares declined sharply in the immediate aftermath of the release. Market participants appeared focused on second-quarter guidance that pointed to more modest sequential revenue growth, raising questions about the pace of acceleration through the remainder of the year. This reaction highlighted sensitivity to forward-looking metrics in a growth-oriented stock.
Additional developments included the appointment of a new Chief Marketing Officer earlier in the period and presentations at investor conferences. Insider activity featured share sales by the Chief Technology Officer. Analyst actions in the period included rating maintenances and target adjustments, contributing to a consensus Hold stance with price targets generally above recent trading levels. Macroeconomic factors and sector comparisons with peers in edge computing also shaped sentiment, though no major regulatory or acquisition events occurred. One thing that stands out here is how the security segment continues to outperform, which I’m watching closely for signs of sustained momentum.
2026 Outlook and Factors Worth Monitoring
As Fastly progresses through 2026, investors may watch the company’s ability to sustain revenue growth in the edge cloud platform amid competitive pressures from larger infrastructure providers. Key themes include continued expansion of security offerings, which have shown accelerated adoption, and management’s focus on improving operating leverage through margin expansion. Remaining performance obligations provide visibility into contracted revenue, while free cash flow generation will remain important for long-term financial flexibility.
Broader industry trends such as increasing demand for low-latency content delivery and AI-related workloads at the edge could support growth opportunities. Potential risks encompass execution on product innovation, customer retention in a competitive landscape, and sensitivity to overall technology spending cycles. Strategic investments in platform capabilities and cost discipline will likely influence positioning as the year advances.
Using AI Tools in My Research Process
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Contributor
Harry Richardson — Algorithmic Trader & Strategy Developer Harry is an algorithmic trader specializing in impulse and breakout trading strategies across cryptocurrency and equity markets. With more than 10 years of experience in developing automated trading systems, he focuses on building structured algorithms designed to capture momentum while maintaining strict risk control. His approach combines quantitative analysis, real-market execution, and continuous performance monitoring. Vitalii prioritizes risk management, drawdown control, and strategy stability over short-term optimization, ensuring algorithms are adaptable to changing market conditions. He has developed and tested hundreds of automated strategies, working extensively with live trading environments, forward testing, and portfolio-level algorithm management. His work centers on transforming trading ideas into fully operational, scalable automated systems.
FSLY's RSI Indicator peaks and leaves overbought zone
The 10-day RSI Oscillator for FSLY moved out of overbought territory on August 17, 2026. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 36 instances where the indicator moved out of the overbought zone. In of the 36 cases the stock moved lower in the days that followed. This puts the odds of a move down at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Moving Average Convergence Divergence Histogram (MACD) for FSLY turned negative on August 19, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 44 similar instances when the indicator turned negative. In of the 44 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where FSLY declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
FSLY broke above its upper Bollinger Band on August 10, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
The Momentum Indicator moved above the 0 level on August 20, 2026. You may want to consider a long position or call options on FSLY as a result. In of 90 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a +2 3-day Advance, the price is estimated to grow further. Considering data from situations where FSLY advanced for three days, in of 276 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 210 cases where FSLY Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. FSLY’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (4.011) is normal, around the industry mean (28.722). P/E Ratio (0.000) is within average values for comparable stocks, (79.317). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (1.755). Dividend Yield (0.000) settles around the average of (0.046) among similar stocks. P/S Ratio (5.534) is also within normal values, averaging (78.705).
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. FSLY’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 94, placing this stock worse than average.
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a providesr of real-time content delivery network services
Industry PackagedSoftware
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