Fastly (FSLY) Q3 2026 Earnings Report

The call was strongly positive, supported by record revenue, operating income and gross margin, four consecutive quarters of at least 20% revenue growth, expanding net retention, increasing multiproduct adoption, positive free cash flow and raised full-year guidance. The main challenges were the planned go-to-market leadership transition, slower growth among customers outside the top 10, increased customer concentration, consumption-driven variability and supply chain monitoring. Management expressed confidence that the transition plan, leadership bench strength, platform strategy and ongoing go-to-market investments would support continued progress.

For the fourth quarter, Fastly expects revenue in the range of $198 million to $202 million, representing 16% annual growth at the midpoint; gross margins of 65.5%, plus or minus 50 basis points; OpEx to increase mid-single-digit millions on a sequential basis; non-GAAP operating profit of $30 million to $34 million, reflecting an operating margin of 16% at the midpoint; and non-GAAP net earnings per diluted share of $0.16 to $0.18. For calendar year 2026, Fastly raised revenue guidance to a range of $744 million to $748 million, reflecting annual growth of 20% at the midpoint; expects gross margins of 65.5%, plus or minus 50 basis points; non-GAAP operating profit of $107 million to $111 million, reflecting an operating margin of 15% at the midpoint; non-GAAP net earnings per diluted share of $0.61 to $0.63; infrastructure capital spend of approximately 10% of revenue; and free cash flow guidance in the range of $50 million to $60 million.