Fastly (FSLY) AI Stock Analysis

Fastly

(BMV:FSLY)

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Action:N/A

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Positive Factors

Platform AdoptionHigher net retention and expanding remaining performance obligations indicate that customers are increasing their use of Fastly’s platform and committing to more future consumption. This supports recurring revenue durability, improves customer lifetime value, and provides stronger visibility into medium-term growth.

Negative Factors

Persistent GAAP LossesFastly has improved its operating profile but still reports negative GAAP profitability and returns. Continued losses can constrain internally generated capital, reduce the quality of reported earnings, and make durable shareholder returns dependent on further execution and sustained margin expansion.

Fastly (FSLY) vs. SPDR S&P 500 ETF (SPY)

Market Cap: MXN 3.68B
Dividend Yield: ―
Average Volume (3M): 870
Price to Earnings (P/E): -38.9
Beta (1Y): -0.20
Revenue Growth: 9.40%
EPS Growth: 52.76%
Country: Mexico
Employees: 1,140
Sector: Technology
Sector Strength: 61
Industry: Software - Application

Fastly Business Overview & Revenue Model

Company Description

Fastly, Inc. offers an advanced edge cloud computing platform designed to efficiently manage, distribute, and safeguard client applications across a global footprint, including North America, the Asia Pacific region, Europe, and other international m...

Fastly Earnings Call Summary

Earnings Call Date:Aug 04, 2026(Q2-2026)|% Change Since:-6.18%|Next Earnings Date:Nov 03, 2026

Earnings Call SentimentPositive

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.

Positive Updates

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.

Negative Updates

Revenue Variability and Episodic Contributions

Management attributed part of the Q2 upside (~less than half of a $10M upside to guide) to episodic events (e.g., World Cup and other live events). The consumption-based revenue model creates quarter-to-quarter variability and makes comps event-sensitive.

Company Guidance

Fastly guided Q3 revenue of $184M–$190M (midpoint +18% YoY), with gross margin ~65% ±50 bps, non‑GAAP operating profit of $20M–$24M (≈12% operating margin at the midpoint) and non‑GAAP net EPS of $0.11–$0.13; for full‑year 2026 it raised revenue guidance to $732M–$746M (≈+18% at midpoint), expects full‑year gross margin ~65% ±50 bps, non‑GAAP operating profit $88M–$96M (≈12% operating margin at midpoint), non‑GAAP net EPS $0.50–$0.54, infrastructure CapEx of 10%–12% of revenue (front‑loaded vs. 5% in 2025), and free cash flow of $40M–$50M, while noting OpEx will normalize higher in H2 due to headcount additions and discretionary spend.

Fastly Risk Analysis

Fastly disclosed 76 risk factors in its most recent earnings report. Fastly reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

1 New Risk

1.Select Risk Factors Affecting Our BusinessQ1, 2026

Fastly Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

MX:FSLY against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
API	67Neutral	$410.51M	34.92	1.96%	―	13.62%	―
KC	66Neutral	$2.38B	-5.69	-7.08%	―	34.93%	74.60%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
RBBN	58Neutral	$277.72M	14.73	4.51%	―	-7.78%	―
WIX	56Neutral	$3.23B	-21.17	28.08%	―	14.18%	-218.58%
EGHT	55Neutral	$301.87M	63.03	3.34%	―	3.66%	―

* Technology Sector Average

Performance Comparison

MX:FSLY and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
MX:FSLY	Fastly, Inc	425.00	273.00	179.61%
EGHT	8x8 Inc	2.08	0.31	17.51%
RBBN	Ribbon Communications	1.62	-1.55	-48.90%
WIX	Wix.com Ltd	74.95	-64.12	-46.11%
KC	Kingsoft Cloud Holdings Ltd.	7.94	-4.07	-33.89%
API	Agora, Inc.	4.33	1.05	32.01%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Fastly AI Stock Analysis