Fastly (NYSE:FSLY) Releases FY 2026 Earnings Guidance

Key Points

• FY2026 guidance: Fastly set EPS of $0.270–$0.330 and revenue of $710–$725 million, and raised Q2 EPS guidance to $0.050–$0.080, signaling improved profitability expectations versus prior consensus.
• Analyst sentiment is mixed — three Buys, seven Holds and one Sell — with an average rating of Hold and an average price target of $16.25, well below the stock's recent trading level.
• Insider selling has been notable (≈1.37M shares sold in the last 90 days, including large sales by the CTO), and the stock traded at $31.57 on elevated volume, underscoring potential profit-taking and volatility risk.

Fastly (NYSE:FSLY - Get Free Report) updated its FY 2026 earnings guidance on Wednesday. The company provided earnings per share (EPS) guidance of 0.270-0.330 for the period. The company issued revenue guidance of $710.0 million-$725.0 million. Fastly also updated its Q2 2026 guidance to 0.050-0.080 EPS.

Analyst Ratings Changes

Several research firms have recently issued reports on FSLY. DA Davidson set a $13.00 price objective on Fastly in a research note on Thursday, February 12th. William Blair raised Fastly from a "market perform" rating to an "outperform" rating in a research note on Thursday, February 12th. Craig Hallum downgraded Fastly from a "buy" rating to a "hold" rating and set a $24.00 price objective for the company. in a research note on Tuesday, April 14th. Piper Sandler reissued a "neutral" rating and set a $14.00 target price (up from $11.00) on shares of Fastly in a research report on Thursday, February 12th. Finally, Royal Bank Of Canada increased their target price on shares of Fastly from $12.00 to $20.00 and gave the company a "sector perform" rating in a research report on Monday, March 2nd. Three research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of "Hold" and an average price target of $16.25.

Fastly Trading Down 2.4%

NYSE:FSLY traded down $0.79 on Wednesday, reaching $31.57. 14,953,642 shares of the stock traded hands, compared to its average volume of 11,827,517. The firm has a market capitalization of $4.94 billion, a price-to-earnings ratio of -32.89 and a beta of 0.49. The company's 50 day moving average is $25.19 and its 200-day moving average is $15.67. The company has a current ratio of 1.46, a quick ratio of 1.46 and a debt-to-equity ratio of 0.16. Fastly has a 1-year low of $5.84 and a 1-year high of $34.82.

Insider Buying and Selling at Fastly

In other Fastly news, insider Scott R. Lovett sold 41,682 shares of the stock in a transaction that occurred on Wednesday, March 18th. The stock was sold at an average price of $26.45, for a total transaction of $1,102,488.90. Following the transaction, the insider directly owned 1,503,878 shares in the company, valued at approximately $39,777,573.10. This represents a 2.70% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CTO Artur Bergman sold 265,000 shares of the stock in a transaction that occurred on Tuesday, March 10th. The stock was sold at an average price of $22.79, for a total value of $6,039,350.00. Following the transaction, the chief technology officer owned 1,604,901 shares in the company, valued at $36,575,693.79. The trade was a 14.17% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 1,374,553 shares of company stock valued at $28,180,823. 6.70% of the stock is currently owned by company insiders.

Key Stories Impacting Fastly

Here are the key news stories impacting Fastly this week:

• Positive Sentiment: Record Q1 results: Fastly reported record revenue, gross margin and remaining performance obligations, and highlighted 47% year-over-year growth in security revenue — demonstrating strong demand in higher-margin product lines. Fastly Announces Record First Quarter 2026 Financial Results
• Positive Sentiment: Raised earnings outlook: Fastly updated Q2 EPS guidance to $0.050–$0.080 (above the $0.010 consensus) and gave FY2026 EPS guidance of $0.270–$0.330 — an explicit improvement to profitability expectations that supports a re-rating. (Guidance released by the company)
• Positive Sentiment: Bullish options activity: Unusually large call buying (43,179 calls, +71% vs. typical volume) signaled speculative/positioning interest ahead of the print, which likely amplified upside into the report.
• Neutral Sentiment: Revenue guidance roughly in line: Q2 revenue guidance of $170.0M–$176.0M was essentially in line with the ~$170.9M consensus, reducing the magnitude of a revenue surprise despite the EPS beat. (Guidance released by the company)
• Negative Sentiment: Competition and pricing risk: Analysts and previews warned that competition in edge/cloud infrastructure and pricing pressure could limit upside and make sustained margin expansion harder, keeping some investors cautious. Should You Buy, Sell, or Hold FSLY Stock Before Q1 Earnings Release?
• Negative Sentiment: Hype vs. sustainability questions: Coverage questioned whether AI-related tailwinds and the recent optimism are enough to deliver durable profitability, introducing skepticism that can cap gains if future quarters don’t show clear trajectory. Is Fastly’s (FSLY) AI-Fueled Earnings Hype Redefining Its Path to Sustainable Profitability?
• Negative Sentiment: Pre-earnings run-up and volatility risk: The stock had a sizable pre-report surge (reported ~17.7% gain on Tuesday), which increases the chance of profit-taking and intra-day pullbacks after the headline news. Fastly (FSLY) Climbs 17.7%, Investors Upbeat on Earnings

Hedge Funds Weigh In On Fastly

A number of institutional investors and hedge funds have recently modified their holdings of FSLY. Align Financial LLC bought a new position in shares of Fastly during the 4th quarter worth approximately $41,000. Quarry LP bought a new position in shares of Fastly during the 3rd quarter worth approximately $49,000. Geneos Wealth Management Inc. bought a new position in shares of Fastly during the 1st quarter worth approximately $52,000. C M Bidwell & Associates Ltd. bought a new position in shares of Fastly during the 4th quarter worth approximately $54,000. Finally, Acadian Asset Management LLC bought a new position in shares of Fastly during the 1st quarter worth approximately $78,000. 79.71% of the stock is currently owned by institutional investors.

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.

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