Fastly, Inc. (FSLY) experienced a dramatic surge of 60.69% during pre-market trading on Thursday. The edge cloud platform provider's stock soared following the release of its fourth-quarter financial results, which significantly exceeded market expectations.

The company reported adjusted earnings of $0.12 per share, doubling the analyst consensus estimate of $0.06. Revenue reached $172.6 million, beating expectations of $161.4 million and representing 23% year-over-year growth. Investor sentiment was further bolstered by Fastly's strong forward guidance for both the first quarter and full year 2026, which came in well above analyst forecasts.

Multiple analysts highlighted that the results demonstrate Fastly is benefiting from a surge in AI-related traffic, particularly from large-language models and agentic AI, positioning the company as an underrated AI play. The "stellar quarter" also showed that operational changes implemented by management are gaining traction, leading to upgraded ratings and raised price targets from several Wall Street firms.