Fastly (NASDAQ:FSLY) Releases Quarterly Earnings Results, Beats Expectations By $0.05 EPS

Key Points

• Fastly reported Q3 revenue of $190.2 million, up 20% year over year, and non-GAAP EPS of $0.17, beating analysts’ $0.12 estimate by $0.05.
• The company raised its 2026 revenue, operating profit, and free cash flow forecasts; its Q4 revenue outlook implies continued growth, though a slower pace than Q3.
• Customer growth was uneven: revenue from Fastly’s top 10 customers rose 46%, while revenue from other customers grew just 8%, a challenge management says may take time to address.

Fastly (NASDAQ:FSLY - Get Free Report) announced its earnings results on Wednesday. The company reported $0.17 earnings per share for the quarter, topping analysts' consensus estimates of $0.12 by $0.05, FiscalAI reports. Fastly had a negative net margin of 11.80% and a negative return on equity of 6.31%.

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 Down 0.2%

Shares of NASDAQ:FSLY traded down $0.04 during trading on Wednesday, reaching $21.03. 8,536,528 shares of the stock were exchanged, compared to its average volume of 5,685,319. The company has a debt-to-equity ratio of 0.33, a current ratio of 3.36 and a quick ratio of 3.36. Fastly has a 1-year low of $7.87 and a 1-year high of $34.82. The stock has a fifty day moving average of $24.30 and a two-hundred day moving average of $21.45. The firm has a market cap of $3.35 billion, a price-to-earnings ratio of -39.68 and a beta of 0.22.

Insider Buying and Selling at Fastly

In other Fastly news, CEO Charles Compton, III sold 8,941 shares of the business's stock in a transaction on Monday, October 26th. The shares were sold at an average price of $24.98, for a total transaction of $223,346.18. Following the completion of the sale, the chief executive officer owned 822,559 shares in the company, valued at approximately $20,547,523.82. The trade was a 1.08% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Artur Bergman sold 37,039 shares of the business's stock in a transaction on Monday, October 26th. The shares were sold at an average price of $25.48, for a total transaction of $943,753.72. Following the sale, the chief technology officer owned 1,024,239 shares of the company's stock, valued at $26,097,609.72. This trade represents a 3.49% decrease in their position. 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 three months, insiders sold 1,334,973 shares of company stock valued at $35,706,621. 4.20% of the stock is currently owned by insiders.

Analysts Set New Price Targets

FSLY has been the topic of several research analyst reports. Freedom Broker upped their target price on Fastly from $32.00 to $37.00 and gave the company a "buy" rating in a research report on Wednesday, September 23rd. Freedom Capital upgraded Fastly to a "strong-buy" rating in a report on Thursday, July 16th. Evercore reissued an "outperform" rating on shares of Fastly in a research note on Wednesday, September 23rd. Piper Sandler increased their price target on Fastly from $27.00 to $28.00 and gave the stock a "neutral" rating in a report on Thursday, August 6th. Finally, Canaccord Genuity Group assumed coverage on shares of Fastly in a research report on Friday, July 17th. They set a "buy" rating and a $27.00 price objective for the company. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, five have assigned a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $27.42.

Key Stories Impacting Fastly

Here are the key news stories impacting Fastly this week:

• Positive Sentiment: Fastly reported Q3 revenue of $190.2 million, up 20.2% year over year and above the $187.8 million FactSet estimate. Non-GAAP EPS was $0.17, ahead of the $0.12 consensus. Fastly beats Q3 sales expectations
• Positive Sentiment: Q4 revenue guidance of $198 million to $202 million implies a $200 million midpoint, about 1.5% above analysts’ consensus—supporting the outlook for continued growth. Fastly Q4 revenue outlook
• Neutral Sentiment: President of Go To Market Scott Lovett plans to retire in 2027. Fastly has begun searching for a Chief Revenue Officer; the transition could create uncertainty, though the departure is not immediate. Fastly leadership transition announcement
• Negative Sentiment: Despite the earnings and guidance beats, reports said FSLY fell sharply after results. The selloff indicates investors were focused on concerns beyond the headline numbers; the available reports do not identify a single definitive reason. Fastly earnings, guidance and share reaction

Fastly Company Profile

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.

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