Fastly (NASDAQ:FSLY) Posts Quarterly Earnings Results

04 Nov 2026, 23:28 by Teresa Graham · The Cerbat Gem

Fastly (NASDAQ:FSLY – Get Free Report) announced its quarterly earnings results on Wednesday. The company reported $0.17 earnings per share for the quarter, beating 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 Price Performance

Shares of Fastly stock traded down $0.04 during trading hours on Wednesday, hitting $21.03. The company’s stock had a trading volume of 8,536,528 shares, compared to its average volume of 5,685,319. The company has a debt-to-equity ratio of 0.33, a quick ratio of 3.36 and a current ratio of 3.36. Fastly has a 12-month low of $7.87 and a 12-month high of $34.82. The business has a 50 day moving average price of $24.30 and a two-hundred day moving average price of $21.45. The company has a market cap of $3.35 billion, a PE ratio of -39.68 and a beta of 0.22.

Fastly News Roundup

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

Insider Activity at Fastly

In other news, insider Scott Lovett sold 41,815 shares of the firm’s stock in a transaction dated Thursday, September 17th. The stock was sold at an average price of $24.64, for a total transaction of $1,030,321.60. Following the completion of the transaction, the insider owned 1,281,583 shares in the company, valued at $31,578,205.12. This trade represents a 3.16% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at 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 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 owned 914,235 shares in the company, valued at $19,555,486.65. The trade was a 5.73% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 1,334,973 shares of company stock valued at $35,706,621 in the last ninety days. Corporate insiders own 4.20% of the company’s stock.

Analysts Set New Price Targets

Several brokerages recently weighed in on FSLY. Raymond James Financial restated an “outperform” rating on shares of Fastly in a report on Wednesday, September 23rd. Canaccord Genuity Group initiated coverage on Fastly in a research report on Friday, July 17th. They issued a “buy” rating and a $27.00 target price for the company. Weiss Ratings reissued a “sell (d-)” rating on shares of Fastly in a research note on Friday, August 7th. Piper Sandler upped their price objective on shares of Fastly from $27.00 to $28.00 and gave the stock a “neutral” rating in a report on Thursday, August 6th. Finally, Bank of America lifted their price objective on Fastly from $20.00 to $22.00 and gave the company an “underperform” rating in a research note on Wednesday, September 23rd. One analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, five have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat.com, Fastly presently has a consensus rating of “Hold” and a consensus target price of $27.42.

View Our Latest Report on Fastly

Fastly Company Profile

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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.