EarningsQ2 2026 Earnings Report
MX:FSLY Q2 2026 EPS Results
Actual EPS$2.57
Consensus EPS$1.13
Beat/MissBeat by +$1.44
One Year Ago EPS-$0.51
MX:FSLY Q2 2026 Revenue Results
Actual Revenue$3.14B
Expected Revenue$2.98B
Beat/MissBeat by +$160.81M
YoY Revenue Growth+23.27%
Earnings Announcement Details
QuarterQ2 2026
Date08/05/2026
TimeAfter Close
Conference CallWednesday, August 5, 2026
MX:FSLY Upcoming Earnings
Fastly's next earnings date is estimated for November 4, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
MX:FSLY Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed strong positive momentum: record revenue, record gross margins, meaningful operating profitability improvements, sustained free cash flow, and accelerating platform adoption—especially in security and compute. Management acknowledged near-term variability from episodic events, some customer concentration, higher front-loaded CapEx due to supply-chain mitigation, and mid-single-digit price erosion in network services. Overall the company presented improving unit economics, stronger RPO, and raised full-year guidance while flagging execution items and normalization of OpEx in the back half.Company Guidance
Record Revenue and Reaccelerated Growth
Revenue of $183.3 million in Q2 (record) increased 23% year-over-year and exceeded the high end of guidance ($170M–$176M). Company reported the highest revenue growth quarter in almost four years.
Record Gross Margin and Strong Operating Profitability
Gross margin hit a record 65.8% (up ~680 basis points vs Q2 2025 and ~180 bps above guidance midpoint). Operating income was $27 million and operating margin expanded to ~14.7%–15%, a swing from -3% a year ago and well above guidance.
Improved Monetization and Unit Economics
Trailing-12-month incremental gross margin rose to 96% (from 47% a year ago). Trailing-12-month incremental operating margin flow-through was 79%, well above the company’s long-term target range of 25%–40%.
Strong Cash Generation and Balance Sheet
Sixth consecutive quarter of positive free cash flow (Q2 free cash flow $3.6M). Cash flow from operations was $39.3M (vs $25.8M in Q2 2025). Ended quarter with ~$337M in cash, marketable securities and investments and a positive net cash balance of $14M.
Platform Adoption Driving Customer Revenue Expansion
Trailing 12-month net retention rate rose to 117% (from 113% in prior quarter and 104% a year ago). Top 10 customers accounted for 37% of revenue and grew 48% year-over-year; customers outside top 10 grew 12% year-over-year. Large customer count (>$100k ARR) added 24 customers.
Security and Compute Momentum
Security revenue was $41.7M, up 43% year-over-year and up 8% sequentially, representing 23% of revenue (vs 20% year-ago). Other products (primarily compute) grew 69% year-over-year to $7.7M, supporting AI-related workloads and showing compute as an emerging expansion engine.
Network Services Growth and Operational Wins
Network services revenue of $103.9M grew 17% year-over-year (an acceleration from prior quarter). Management highlighted multiple customer wins and examples of platform resilience and performance during major live sporting events.
Improved Forward Guidance
Raised 2026 revenue guidance to $732M–$746M (about 18% growth at midpoint). Increased non-GAAP operating profit guidance to $88M–$96M (12% operating margin at midpoint) and maintained 2026 free cash flow guidance of $40M–$50M.
Stronger RPO and Contract Visibility
Remaining performance obligations (RPO) exited at $341M, up 38% year-over-year; the current portion of RPO was 79% of total and grew 44% year-over-year, reflecting larger upfront commitments and improved go-to-market discipline.
MX:FSLY Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed