Companies /Technology

Fastly Inc - Class A

NYSE: FSLY Software - Application
$20.01
▼ $0.43 (−2.08%) today
Markets open · 9:59am ET

Q2 2026 Earnings

Reported Aug 5, 2026, 4:08pm ET · SEC source
$0.15
Beat +126.24%
EPS · est. $0.07 Adjusted
$183.3M
Beat +5.40%
Revenue · est. $173.9M
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−21%−14%−7%0Aug 5Aug 6report 4:08pm ETearnings−0.2%−17.8%
−21%−14%−7%0Aug 5Aug 6earnings−0.2%−17.8%
FSLY −17.8%S&P 500 −0.2%
−21%−14%−7%0Aug 5Aug 6report 4:08pm ETearnings+0.1%−17.5%
−21%−14%−7%0Aug 5Aug 6earnings+0.1%−17.5%
FSLY −17.5%NASDAQ +0.1%
−9%0+9%Aug 4Aug 13report 4:08pm ETearnings+0.9%+15.0%
−9%0+9%Aug 4Aug 13earnings+0.9%+15.0%
FSLY +15.0%S&P 500 +0.9%
−9%0+9%Aug 4Aug 13report 4:08pm ETearnings+2.2%+15.0%
−9%0+9%Aug 4Aug 13earnings+2.2%+15.0%
FSLY +15.0%NASDAQ +2.2%
−12.87%
Day of report
+1.23%
Next session
+32.36%
One week

Did FSLY Beat Earnings? Q2 2026 Results

Fastly, Inc. delivered a standout second quarter for fiscal 2026, beating Wall Street on both the top and bottom lines and extending its streak of consensus EPS beats to five consecutive quarters. The edge cloud company posted adjusted non-GAAP EPS of $0.15, well ahead of the $0.07 consensus estimate, while revenue climbed 23.3% year over year to $183.32 million, topping the $173.92 million estimate by 5.40%. The most compelling driver behind the results was a dramatic swing in profitability, with non-GAAP operating income reaching $26.99 million compared to a loss of $4.59 million in the year-ago period, as gross margin expansion and operating leverage took hold across the platform. Security revenue grew 43% year over year to $41.70 million, underscoring the broadening product mix. Management raised its full-year 2026 revenue outlook to $732.00 million to $746.00 million and guided non-GAAP EPS of $0.50 to $0.54, signaling continued confidence as AI-driven traffic, growing 6.5 times faster than human traffic, increasingly flows through Fastly's network.

Key Takeaways
  • Security revenue grew 43% YoY, now representing 23% of total revenue
  • LTM net retention rate increased to 117%, the highest level in over three years
  • RPO grew 38% YoY to $341 million
  • Non-GAAP gross margin expanded to 65.8% from 59.0% YoY
  • Platform strategy driving cross-sell momentum

“Record second quarter results reflect strong execution and the deep trust customers place in our technology and our teams.”

Fastly CEO, on the earnings call

Forward Guidance & Outlook

Fastly raised its full-year 2026 guidance: total revenue of $732.0–$746.0 million, non-GAAP operating income of $88.0–$96.0 million, and non-GAAP net income per diluted share of $0.50–$0.54 (assuming 180.3 million weighted average diluted shares). For Q3 2026, the company guides total revenue of $184.0–$190.0 million, non-GAAP operating income of $20.0–$24.0 million, and non-GAAP net income per diluted share of $0.11–$0.13 (assuming 181.4 million weighted average diluted shares).

FSLY YoY Financials

Q2 2026 vs Q2 2025 · SEC filings Q2 2025 Q2 2026
$0$60.0M$120.0M$180.0M$148.7M$183.3MRevenue$76.3M$116.0MGross Profit$-8,993,084$-14,433,000Operating Income$-9,838,455$-15,591,000Net Income
$0$60.0M$120.0M$180.0MRevenueGross ProfitOperating IncomeNet Income

FSLY Revenue by Segment

Network Services$133.9M+17.0%
Security$41.7M+43.0%
Other (Compute and Observability)$7.7M+69.0%

Figures from SEC filings and company reports. Not investment advice.