Fastly's stock price surged 24% after Q4 earnings beat expectations and optimistic guidance

LootboxPhobia · 2026-02-11T22:24:25+00:00

Fastly announces Q4 earnings, with revenue and adjusted EPS exceeding analyst expectations, causing the stock price to rise by 24%. The company achieved record-high gross margin and operating profit, and expects future revenue to grow significantly, especially with strong performance in the security business sector.

LootboxPhobia

2026-02-11 22:24:25

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San Francisco - Fastly, Inc. (NASDAQ:FSLY), a leading global edge cloud platform, announced its Q4 earnings that significantly exceeded analyst expectations, with the company achieving record revenue and raising its outlook for the coming year. The news caused the stock price to surge 24%.

The edge computing specialist reported an adjusted earnings per share of $0.12, double the analyst consensus of $0.06. Revenue reached $172.6 million, easily surpassing the analyst estimate of $161.36 million, representing a 23% year-over-year increase.

“Our Q4 performance marks a turning point in Fastly’s growth, as we achieved record revenue, gross margin, and operating profit,” said Fastly CEO Kip Compton. Following the announcement, the company’s stock price soared, reflecting investor enthusiasm for the company’s accelerated growth trajectory.

Fastly’s Q4 set a record for gross margin, with non-GAAP gross margin reaching 64.0%, up from 57.5% in the same period last year. The company also reported remaining performance obligations (RPO) of $353.8 million, a 55% increase year-over-year, indicating strong revenue visibility in the future.

Looking ahead, Fastly’s guidance significantly exceeded analyst expectations. For Q1 2026, the company expects revenue between $168 million and $174 million, compared to the consensus estimate of $159.6 million; adjusted EPS is projected to be between $0.07 and $0.10, versus the analyst expectation of $0.01.

For the full year 2026, Fastly forecasts revenue of $700 million to $720 million, well above the consensus of $667.8 million, with adjusted EPS of $0.23 to $0.29, compared to analyst estimates of $0.13.

The company’s security business revenue showed particularly strong growth, up 32% to $354 million, while network services revenue increased 19% to $130.8 million. Fastly’s enterprise customer count reached 628 in Q4, an increase of 32 customers from the same period last year.

Fastly’s net retention rate over the past 12 months increased from 106% in the previous quarter to 110% in Q4, indicating successful expansion of relationships with existing customers.

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