Fastly (NASDAQ:FSLY – Get Free Report) announced its quarterly earnings results on Wednesday. The company reported $0.17 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.12 by $0.05, FiscalAI reports. Fastly had a negative return on equity of 6.31% and a negative net margin of 11.80%.
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 Performance
Shares of FSLY traded down $0.04 on Wednesday, reaching $21.03. 8,536,528 shares of the company’s stock traded hands, compared to its average volume of 5,685,319. The stock’s 50 day simple moving average is $24.30 and its two-hundred day simple moving average is $21.45. The stock has a market cap of $3.35 billion, a PE ratio of -39.68 and a beta of 0.22. Fastly has a 52-week low of $7.87 and a 52-week high of $34.82. The company has a current ratio of 3.36, a quick ratio of 3.36 and a debt-to-equity ratio of 0.33.
Insiders Place Their Bets
In other Fastly news, insider Jeffrey Ford sold 45,832 shares of the company’s stock in a transaction on 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 completion of the transaction, the insider owned 249,861 shares in the company, valued at $6,159,073.65. This represents a 15.50% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Charles Compton, III sold 55,579 shares of the firm’s stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $21.39, for a total value of $1,188,834.81. Following the sale, the chief executive officer directly owned 914,235 shares of the company’s stock, valued at approximately $19,555,486.65. This represents a 5.73% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 1,334,973 shares of company stock valued at $35,706,621. 4.20% of the stock is currently owned by insiders.
Analyst Upgrades and Downgrades
FSLY has been the topic of several recent analyst reports. Royal Bank Of Canada restated a “sector perform” rating and set a $25.00 price objective on shares of Fastly in a research note on Wednesday, September 23rd. Freedom Broker upped their target price on shares of Fastly from $32.00 to $37.00 and gave the stock a “buy” rating in a research note on Wednesday, September 23rd. Freedom Capital upgraded shares of Fastly to a “strong-buy” rating in a report on Thursday, July 16th. Bank of America increased their target price on shares of Fastly from $20.00 to $22.00 and gave the company an “underperform” rating in a report on Wednesday, September 23rd. Finally, Piper Sandler raised their price target on shares of Fastly from $27.00 to $28.00 and gave the company a “neutral” rating in a research report on Thursday, August 6th. One investment 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. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $27.42.
Read Our Latest Report on FSLY
More Fastly News
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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